HELOC Utilization is a Great NEXT Marketing Campaign

Informing members/customers of the credit available to them—and instructing them on how to access it—provides an impetus for them to activate their lines.

Let’s examine a current client’s HELOC Utilization campaign to showcase what's achievable for you. A Midwest client achieved the following results from a mailing campaign:

Goals

• Notify customers about the availability of their equity line, including the amount they can access.
• Engage households.
• Boost line balances.
• Inform customers with zero balances on their lines about how to use their credit.

Methodology

• Query the FI’s database for customers with an existing equity line of credit.
• Target customers with a specified minimum amount of credit available (e.g., more than $5,000).
• Understanding and clearly conveying the amount available to customers is key to encouraging line usage.
• Draw the reader’s attention to the available balance.
• Display the available balance prominently, perhaps in an area like the 'Johnson’s Box' at the top right corner of the letter.
• The letter can highlight typical uses for equity loans such as home improvements, college funding, debt consolidation, and even vacations.

Mailing Package

• 8 ½ x 11 letter with a 3 lift note included.
• #10 window envelope.

Results

• HELOC Utilization campaigns can achieve response rates of 15% or higher, indicating customers have increased their HELOC balances.
• Notable uptick in line balances.
• Substantial positive ROI.

Given the remarkable response rates from the promotion, there's a corresponding surge in balances.

You are already offering HELOCs to your members/customers. It's an excellent opportunity to ensure they make the most of their funds, fostering greater loyalty in the process.