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Oct

20

Why Lowering CPA is so Critical for Lenders

Why Lowering CPA is so Critical for Lenders
Lowering cost per acquisition is a critical component of direct mail marketing. When lenders lower their cost per acquisition, their ROI subsequently increases. Lowering CPA is the easiest improvement lenders can make when trying to improve their return on investment. A lower cost per acquisition allows lenders to profit off of their direct mail marketing campaigns.
A low ROI equals a high CPA; therefore, a high ROI means a low CPA. Lenders may think that using an internal direct mail marketing team is the best way to maintain a small CPA, but using an experienced external direct mail marketing team can lower your cost per acquisition, improve your response rates, and increase your return on investment.
Lenders want to be able to put less money into their marketing campaigns while still being able to receive paying customers. The more money you put into marketing does not necessarily mean that the campaign will be more effective than a more cost efficient one. Lenders are in the business of getting money out on the streets. We often see lenders spend too much money on direct mail marketing campaigns. Expensive direct mail campaigns can be problematic when they are not as successful as expected. Problems like this will cause a lower ROI and higher CPA.
Lending Science DM helps lenders improve their cost per acquisition by driving response, approval, funded loans, and payment performance. Lending Science DM works with clients to optimize the flow through all the way to payment performance versus stopping at generating responses that may or may not be the right fit for the customer’s product and risk appetite. Call us today at 800-769-3050 or send us a message to find out more about how Lending Science DM can help you. Do not settle for average results when Lending Science DM has proven to provide above average results for business, mortgage and consumer lending.
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