Since its enactment in 1977, The Aspen Institute reports that “The CRA is credited with pumping nearly $2 trillion into historically underserved communities through mortgage, small business, and farm lending” in order to meet the law’s requirements.
For banks looking to meet the requirements set forth by the Community Reinvestment Act and drive CRA business, geo-targeting can be a very effective strategy. By tapping into the data of the communities closest to your bank, you can better equip yourself with the information you need to target the right products to the right customers.
Geo-targeting and demographic prospecting not only help you define who your primary audience is, but it can also tell you where low-and-moderate-income neighborhoods are so you can better market your services to them. Here are just a few of the ways that geo-targeting can help drive CRA business for your bank:
Direct Mail Targeting
Entrepreneur defines direct mail as “A marketing effort that uses a mail service to deliver a promotional printed piece to your target audience.” When a bank signs up for a system like MyCRMDashboard mortgage CRM, for example, they’ll gain access to an online store that they can use to market their direct mailing efforts to specific geographies and demographics.
Direct mail targeting looks like this:
- Step 1: Choose a Product – This could be a postcard or a letter, or other types of mailings, depending on what your bank has approved.
- Step 2: Customize your Message – Personalize the piece with your contact information and relevant message.
- Step 3: Geographic Targeting – Input a zip code, city, county, state, or even a radius around a specific address or draw a polygon on a map.
- Step 4: Customize by Demographics – Select data regarding customer lifestyles, purchase behavior, age, gender, income, loan information, home market value, home purchase information, and more.
- Step 5: Place Order – Finalize the order, and then sit back and relax! We do all the printing, addressing, personalizing, and mailing on your behalf.
While there’s never a guarantee that someone will read the direct mail you send them, compared to email, the odds are far higher that they will. People just aren’t as likely to discard a physical object without looking at it first, so if you can design an eye-catching and informative piece of direct mail, then you can capture someone’s attention and spur them to action.
This is why geo-targeting and demographics can be so useful, especially for meeting CRA requirements. If you already know something about a demographic, or even a specific person within that demographic, then you send them a piece of mail that will speak directly to them in a meaningful way. Think of geo-targeting as a way to help define where, when, and how you can best reach communities to drive your bank’s CRA business.