Marketing Ideas: Who Uses Payday Loan Products.
To improve your marketing and sales initiatives for your payday loan company, you must understand the customer. Who uses payday loan and installment loan products to solve their temporary financial emergency?
For insight, look no further than the 10K submitted by Community Choice Financial.
“Community Choice Financial Inc. (“CCFI”) is a holding company and conducts substantially all of its business operations through its subsidiaries. Those subsidiaries are leading providers of alternative financial services to unbanked and underbanked consumers through a network of 530 retail storefronts across 15 states, an internet presence in 24 states, and a small internet presence in the United Kingdom. We focus on providing a wide range of convenient consumer financial products and services to help customers manage their day-to-day financial needs, including consumer loans, check cashing, prepaid debit cards, money transfers, bill payments and money orders. Although the majority of our customers have banking relationships, we believe that our customers use our financial services because they are convenient, easy to understand, and, in many instances, more affordable than available alternatives.”
“Whether through our internet platform or retail locations, we strive to provide customers with unparalled customer service in a safe, clean and welcoming environment or with the privacy and convenience of our internet based services. Our internet platform is easy to use and provides an alternative for customers who may prefer the convenience and benefits of the internet. Our retail locations are located in highly visible, accessible locations that allow customers convenience and immediate access to our services. Our professional work environment combines high employee performance standards, incentive-based pay and a wide array of training programs to incentivize our employees to provide superior customer service. We believe that this approach has enabled us to build strong customer loyalty, putting us in a position to expand and continue to capitalize on our innovative product offerings.”
“We serve the large and growing market of individuals who have limited or no access to traditional sources of consumer credit and financial services. A study published in 2013, conducted by the FDIC indicates 27.7% of U.S. households are either unbanked or underbanked, representing approximately 67.6 million adults. As traditional financial institutions increase fees for consumer services, such as checking accounts and debit cards, and tighten credit standards as a result of economic and other market driven developments, consumers have looked elsewhere for less expensive and more convenient alternatives to meet their financial needs. According to a 2014 report from the Federal Reserve Bank of New York, total consumer credit outstanding has declined $1.4 trillion from its peak in the third quarter of 2008 through 2013. This contraction in the supply of consumer credit has resulted in significant unmet demand for consumer loan products.”
We serve a large and growing demographic group of customers by providing services to help them manage their day-to-day financial needs. Our customers are primarily working-class, middle-income individuals. Based on third-party market surveys, we believe the following about our customers:
· they have an average annual household income between $20,000 and $50,000, with approximately 17% in excess of $50,000;
· over 70% are under the age of 45;
· over 50% are between 25 and 44 years of age;
· approximately 50% are male and 50% are female;
· approximately 50% have attended at least some college;
· over 95% have access to the internet;
· over 70% own a home computer;
· over 55% have access to a computer in the workplace; and
· approximately 75% have access to a checking account and choose to use our services as a means of managing their financial needs.
Our customers generally are underserved or unserved by the traditional banking system and choose alternative solutions to gain convenient and immediate access to cash, consumer loans, prepaid debit cards, money transfers, bill payments and money orders. We believe that our customers use our financial services because they are quick, convenient and, in many instances, more affordable than available alternatives. Additionally, we provide them with a safe, welcoming environment to use our services.
So, bottom line? Your customer avatar is the typical Walmart customer. They want access to cash quickly in a safe, private environment without a lot of hassle. It’s not rocket science. Don’t overthink it!
Need some specific action items for payday loan marketing? Payday loan marketing ideas.