With the rise of the dreaded COVID-19 also came record-low interest rates in the housing market. Consumers all over the United States were jumping at the opportunity to purchase a home. So much so that banks were overwhelmed with the number of loan applications they were receiving. You may be thinking to yourself, “What an easy, money-making year for banks!” However, that wasn’t always the case.
For our bank client, many customers came right through the door wanting to apply for a mortgage loan. However, other customers went to the competition to apply for the loan instead. Our marketing team used the Four P’s of Marketing (also known as the Marketing Mix) to ensure that current bank clients and consumers in the local area weren’t choosing the competition to fulfill their mortgage loans.
Many marketers are used to understanding the Four P’s of Marketing for a physical product. But what about for a service? Like providing a loan? Marketing in the world of banking doesn’t have to be difficult or boring and I’ll give you an example of how. Let’s dive into how we used the Four P’s for bank mortgage loans.
Product
Our bank’s “product” is – you guessed it – providing mortgage loans. Although the loan itself is a product, we concentrated on the bank’s customer service while providing that loan. This was what set them apart from the competition.
Price
The price of the loans would be the current interest rates. If you are trying to market loans, you’ll want to consider if your interest rates are lower or higher than the competition. If they are lower, you need to make that a big part of your message. If they are higher, determine other benefits that are better than the competition. For our bank, that was personalized service, local decisions made quickly, convenient ways to apply for the mortgage and communicate with your lender.
Place
For our bank, consumers could apply for pre-qualifications or approvals in person, on our website, or our mobile app for mortgage loans. This information was very important for our message because it provided convenience for consumers.
Promotion
Here is where the fun part comes into play. We had two separate promotion strategies for our current bank customers and consumers in the local area. For current bank customers, we shared our message on the bank’s social media, website, sent out email blasts, used bank flyers, and word-of-mouth marketing from our bankers. For consumers in the local area, we created social media ads, submitted ads, articles and press releases to local publications, and created radio spots.
By using the Four P’s and jotting down what goes under each category, it makes it easier to start creating a marketing plan by having this simple outline. This is especially true for marketers working in the banking industry where the product or service may seem boring. So next time you’re stuck on how to market a bank product or service begin with the Four P’s of Marketing and it’ll make it a whole lot easier.
