The online lending industry is becoming increasingly competitive, making it crucial for companies to understand and optimize customer journeys. Generally, concerns about security and high interest rates have notably affected borrower retention and led to an increase in unpaid debts. By focusing on each touchpoint, online lenders can enhance user experience, boost conversion rates, and build long-term loyalty. This article explores each stage of the customer journey and offers actionable strategies for optimization, supported by case studies .
What is a Customer Journey?
A Customer journey encompasses the complete experience a customer has with a brand, from their first interaction to post-purchase and beyond. It covers every phase, including initial awareness, evaluation, decision-making, and continued engagement. Mapping and analyzing the customer journey is essential for pinpointing critical touchpoints and refining each stage to enhance overall customer satisfaction and build loyalty.
What Does an Ideal Customer Journey for an Online lending company Look Like?
Each sector has its own distinct customer journey map, and missteps at any interaction stage can lead to complications. To illustrate effective customer journeys in the online lending space, we’ll use lending platforms like Renmoney and Aella Credit as case studies.
1. Awareness: Getting seen and staying seen
This is the first stage where potential borrowers discover your company. They might come across your services through various channels. This may include search engines, social media, YouTube video ads, TV, billboards, web display ads, radio and even word of mouth. According to BrightEdge, 53% of website traffic comes from organic search, making search engine optimization (SEO) a profitable investment for loan companies. Speaking of SEO, imagine searching for ‘take a loan in Nigeria’? A list of pages will appear, and as someone interested in taking a loan, you’d likely click on one of the first search results to explore their website. Now, imagine your lending company being right at the top, easily found by potential borrowers…
Image : Google – Take a loan in Nigeria
Awareness through search engines isn’t complete if your website doesn’t speak to the audience the right way. At this stage, whether you’re using a website or a mobile app, it’s crucial that your platform includes details that directly address your audience’s needs. Take Renmoney as a case study.
The image above indicates a good use of content that instructs visitors with a bold Call-To-Action to put a call through if they require loans of a certain amount.
Beyond SEO, social media with emphasis on meta, has also proven to be a good tool for creating brand awareness. Engaging users on platforms like Facebook, LinkedIn, and Instagram with targeted ads and informative posts works well in getting the awareness stage right. According to Hootsuite, 73% of marketers believe social media is “somewhat” or “very” effective for their business. It can also be effective for your online lending business.
The awareness stage is only one out of many touch points and strategies to gain traction. If your online lending company is stuck at this stage, Contact us to develop a working top of the funnel strategy for you.
What are some strategies to optimize the user acquisition funnel at the awareness stage?
Keyword Optimization: Use keyword research tools to find terms related to online lending and integrate them into your content to improve search rankings. This will require writing more website and blog content that are optimized for your primary and secondary keywords.
Targeted Ad Campaigns: Develop targeted ads to reach our buyer personas using their demographics, psychographics, behavioral data, goals, challenges and decision making insights to drive relevant traffic to your website or mobile app.
Helpful Content: Push out valuable content that addresses borrower concerns and provides helpful information to boost organic reach.
2. Interest: Engaging potential Borrowers
There is also the interest stage. At this stage, potential borrowers actively explore your offerings. That is; after getting to find you, they move further down the funnel to explore your website or mobile app even more.
Interest in online lending platforms has surged due to pressing financial needs. At this stage, potential customers assess your business based on the quality of the information you provide and the efficiency of your onboarding process. This stage is largely about making sense of what you have to offer and retaining attention span.
Let’s take for instance, you made a search on google looking for a loan company that offers 6 million naira, you did find one, and got into the website or mobile application, the main reason you’ll stay long enough to take a loan is that the content is convincing and the interface is user-friendly. If the website is difficult to navigate or the information isn’t clear, you’re likely to leave and look elsewhere. This emphasizes the importance of a seamless user experience in customer acquisition. To get this stage right, you may have to consider the following:
Website Landing Pages: Design landing pages that are visually appealing and provide clear CTAs. Effective landing pages guide users through the next steps in the funnel (Selleo).
Mobile Apps: Ensure your mobile app offers a seamless user experience. Improvements in UX can lead to a significant increase in conversion rates.
3. Consideration: Facilitating Informed Decisions
At this stage, prospects evaluate their financial needs and compare your products with those of competitors. Utilizing comparison tables and detailed FAQs can help borrowers assess their options more effectively.
Getting this right, may require the service of an experienced copywriter to ensure the information is clear and concise. To further aid a seamless decision-making process for prospects, showcasing positive reviews and success stories helps to build credibility. BrightLocal reports that 91% of consumers read online reviews regularly or occasionally.
There are a few major touchpoints to look into here:
a. Comparison Tables: Provide clear comparison tables highlighting the loans you offer, and the details required alongside. This will help with borrowers’ decision making.
b. FAQs: Develop a comprehensive FAQ section to address common borrower questions. These FAQs will answer significant questions that borrowers may have. This will also assist borrowers make decisions.
c. Customer Reviews: Showcase positive reviews and testimonials to build trust and credibility. According to BrightLocal, 91% of consumers read online reviews regularly (ReviewTrackers).
Here are some Optimization Strategies:
Detailed Comparisons: Ensure comparison tables are easy to understand and clearly highlight product differentiators.
FAQ Clarity: Keep your FAQ section up-to-date based on customer inquiries and feedback.
Review Management: Actively solicit and manage customer reviews to maintain a positive online reputation and address any negative feedback.
4. Application: Streamlining the Process
When analyzing the customer journey for an online lending company, the application phase is also a crucial touchpoint that aids and improves conversion processes. This stage is where prospects become applicants. It is expedient that you make the process straightforward with clear instructions and minimal steps. HubSpot indicates that 50% of website visitors will wait no longer than 6 seconds for a page to load. Here are major touchpoints to consider looking at
Application Forms: Simplify application forms by reducing the number of fields and providing clear instructions.
Document Submission Portals: Ensure document submission processes are secure and user-friendly Customer Support: Offer responsive support through live chat, email, or phone to assist users with any issues during the application process.
5. Repayment
For an online lending company, conversion isn’t complete until the repayment process is on and smooth. To sail through this stage, CMO’s wants to offer flexible repayment options to accommodate different financial situations.
Beyond this, CMO’S can also adopt the use of push notifications, containing well kneaded repayment memos and beyond that, it could also be a tool to connect with your users, sharing beautiful moments through contents. This and more may strengthen users’ decision to be loyal.
Building a Strong Foundation: Customer Acquisition
To build a sustainable user acquisition funnel, you definitely want to start with a robust customer acquisition strategy: Here are a few things to do :
Content Marketing:Develop content that addresses common borrower concerns, such as loan eligibility, interest rates, and repayment strategies. Using the right content effectively is akin to a set of knives in the hands of a skilled chef—they are essential for achieving precise and impactful results.To maximize the effectiveness of well-written blog content, consider getting it sponsored on high-authority guest websites. This strategy not only boosts visibility but also drives targeted traffic to your website, enhancing your content’s reach and impact. By leveraging reputable platforms, you can attract a broader audience and improve your site’s SEO, leading to higher conversion rates and overall growth.
Search Engine Optimization (SEO): Optimize your website and content for relevant keywords to improve your visibility in search engine results. This involves on-page SEO (e.g., keyword integration, meta descriptions) and off-page SEO (e.g., backlinks from reputable sources).
Paid Advertising: Platforms like Google Ads and social media advertising offer targeted reach. Nobody really goes wrong with paid advertising, except it is done wrong.
Partner with Influencers: Collaborate with influencers and complementary businesses, such as financial advisors or real estate agents, to cross-promote your services. Partnering with influencers and trusted professionals can expand your reach and build credibility through genuine endorsements.
If all these sounds like a lot, you probably need us to step in, contact us
How Conversion Optimization can help your online lending company
Conversion optimization, also known as conversion rate optimization (CRO), is the process of improving the effectiveness of your website or marketing efforts to increase the percentage of visitors who complete a desired action. These actions can include making a purchase, signing up for a newsletter, filling out a form, or any other goal that is valuable to your business. Here is how it can be applicable to your loan company.
a. User Experience (UX): Ensure your website and loan application process are user-friendly and mobile-optimized. Usability improvements can lead to a 100% increase in conversion rates.
b. Clear Value Proposition: Communicate the benefits of your loan products clearly. Highlight features such as competitive interest rates, flexible terms, and exceptional customer support. A well-defined value proposition is critical to attracting and retaining customers.
c. Trust and Security: Build trust by showcasing customer testimonials, security certifications, and transparent pricing. Make it clear that user data is protected and that your company operates with integrity.
d. Incentives: Offer incentives such as lower interest rates for first-time borrowers or referral bonuses to encourage applications and word-of-mouth marketing.
Nurturing Customer Relationships
Building customer relationships is crucial across various sectors, and the strategies tend to be quite similar. Here are a few key strategies to consider for your loan company:
a. Personalized Communication: Use data to personalize interactions with borrowers. Tailor your emails, offers, and recommendations based on their financial profile and borrowing history.
b. Exceptional Customer Service: Provide timely and helpful support throughout the loan lifecycle. A responsive and empathetic customer service team can enhance satisfaction and foster loyalty.
c. Loyalty Programs: Implement programs that reward repeat customers with exclusive offers, such as lower interest rates on future loans or access to premium features. Loyalty360 highlights that 81% of customers are more likely to continue doing business with brands that offer rewards.
d. Feedback Loop: Regularly solicit feedback from customers to identify areas for improvement. Use surveys, reviews, and direct feedback to enhance your services and address any issues. SurveyMonkey found that businesses that actively seek customer feedback see a 20% increase in customer satisfaction.
Measuring and Optimizing
To ensure the ongoing effectiveness of your acquisition funnel, there is a need to continuously measure and optimize your strategies. You should keep in touch with the following :
a. Key Performance Indicators (KPIs): Track essential metrics such as customer acquisition cost (CAC), customer lifetime value (CLTV), loan default rates, and net promoter score (NPS). HubSpot indicates that companies that track KPIs are 30% more likely to see an increase in revenue.
b. A/B Testing: Experiment with different marketing strategies, landing pages, and application processes to identify what works best. A/B testing helps optimize performance by comparing variations and selecting the most effective approach.
c. Data Analytics: Continuously analyze data to uncover trends and opportunities for improvement. Use analytics to refine your strategies, enhance customer targeting, and improve the overall user experience.
Conclusion
Building a sustainable user acquisition funnel in the online lending industry requires a holistic approach that addresses both acquiring new customers and nurturing long-term loyalty. By understanding the customer journey, optimizing the user experience, and providing exceptional service, you can create a strong foundation for growth and success in a competitive market. Mastering the art of building a sustainable user acquisition funnel ensures not just immediate gains but long-term stability and success. By integrating targeted marketing, conversion optimization, relationship nurturing, and ongoing measurement, online lending companies can achieve a balanced approach to growth and customer satisfaction.
To achieve success, you need a comprehensive 360-degree marketing plan that addresses every stage of the customer journey and optimizes each touchpoint to drive growth for your online lending company. Contact us to manage your entire marketing strategy.
