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In today’s market, it’s imperative to know the 5 W’s of Marketing. That’s right, the 5 W’s, not 5 P’s. These are:
- Who is my target demographic?
- Why are they interested in products or services?
- When do they most seek out my products or services?
- Where do my products gain the most traffic? Online Ads? Email Marketing, Sponsorships?
- How can I best utilize different marketing channels to increase awareness and revenue?
In this article, we will highlight these techniques within the highly lucrative market of short term loans.
Let’s pose a familiar scenario to illustrate these concepts.
Alex is heading to work when he suddenly hears a boom, followed by a hissing sound, and his car is tilting to one side. He’s just experienced a flat tire, and odds are that he isn’t alone. In the US alone, a person experiences a flat tire every 7 seconds.
Around 220 million Americans have to deal with a flat tire each year, so it’s an event that is happening to thousands of people daily all over the country.
Let’s Use This Statistic to Explain the 5 W’s of Marketing.
- Who are your consumers?
Probably within those 220 million people that we mentioned in that previous statistic.
- Why do they need to fix their cars?
They need to fix that mode of transportation to be able to go to work, get their errands done, and many other responsibilities.
- When will they be looking for that information?
Once they have a flat tire, the search is on to find a car repair shop or tire store to deal with the issue at hand.
- Where are they going to be searching for those services?
Like most people, they will search online, be it through Google, Yelp, CitySearch, Foursquare, and other local directories.
- And finally, How are they going to do it?
Most Americans (around 50%) say that they can’t cover an emergency expense over $400. A flat tire can quickly become a prohibitive unexpected cost. That person will most likely turn to a lender to help cover that cost.
You can take a vast array of situations and apply this approach to, such as:
- Paying for the Dentist or Doctor
- Apartment Rent
- Down Payments and Security Deposits
- Social Events
and many more!
Where Do Payday Loans Fit Into This Scenario?
That said, how would they go about this? 3 out of 4 Americans are subprime customers. This means that, more often than not, they will not be able to secure a loan from a bank.
They will then turn to the particular vertical of subprime loans to fill that gap. In this market, PayDay loans and Installment loans are the most commonly sought after by these consumers to fill that gap.
And unlike other industries, once you have a customer, the likelihood that they will require another loan is enormous. Once they work to pay off their debts, they can solicit as many loans as they can pay for.
What Is the Market Like?
You might be thinking to yourself, this sounds like a big and lucrative market! How big could it possibly be? Well, as it currently stands, there are around 100 million consumers! In addition to that, the yearly revenue is about 70 billion dollars.
Approximately 60% of those consumers use online lenders, while 40% request a loan in-store. That is currently changing, as people start to do more and more things online. 15% of those people that used to go to a brick and mortar store are moving to online lenders each year.
Another way that marketers are pushing people to use online lenders is through GeoFencing. They target consumers that have visited a payday lender store using the method of Who, Why, When, Where, and How.
- Who are the consumers?
People who visit payday stores.
- Why should we target these consumers?
Since it’s easier to apply online, they will be willing to make the transition.
- When should we advertise to them?
At any time, since unexpected financial costs strike at any time (being unforeseen and all)
- Where should we reach this audience?
Using online ads
- How do you reach these consumers?
By buying the device IDs from the mobile phones of people that visited PayDay stores from data brokers or directly from app developers. Load those device IDs to a DSP platform and get cross-browser identity. You can now advertise to only these devices and weed out bot traffic.
This Presents an Excellent Opportunity for Online Lead Generation.
This approach can help put your products in front of the eyes of the people that are most interested in them. Be it through Twitter, Facebook, Google Ads, Digital Streaming services, and other less conventional Marketing Channels, the industry is set to grow.
Here at LeadsMarket, we have been industry experts since 2011, being on top of all the trends, changes, and innovations in the industry. Since we are acutely aware of the who, why, when, where, and how of the Short Term lending industry, we can provide a fantastic database of customers that can provide a steady stream of revenue.