As storefront lenders move online to reach new customers, they may be overlooking one of their most valuable growth opportunities.
One of the biggest reasons storefront lenders move online is to reach customers they aren’t reaching today.
Customers increasingly prefer digital experiences. They want to research products online, start applications on their own schedule, and manage their accounts without visiting a physical location.
For lenders, moving online creates opportunities to reach entirely new audiences and compete in markets that extend beyond the reach of a storefront.
But in the process of pursuing new customers, it’s worth asking another question:
What happened to the customers you used to have?
The Customers You Already Earned
Storefront lenders have spent years, and often decades, building customer relationships.
Some customers borrowed once and never returned.
Some successfully completed multiple loans.
Others simply drifted away as their needs changed or new options became available.
The challenge is that many organizations lose visibility into these customers over time.
Meanwhile, those same customers may still need credit. They may still fit your target audience. And they may now prefer to engage online rather than visit a physical location.
In other words, some of your best opportunities for growth may already exist within relationships you’ve worked hard to build.
Going Online Changes the Competitive Landscape
In a storefront environment, convenience can work in your favor.
Customers know where you’re located. They recognize your brand. They may already have experience with your staff and processes.
Online, that dynamic changes.
The moment customers begin searching digitally, they’re exposed to a much larger marketplace. Competitors that never existed in your local footprint are suddenly competing for the same attention.
That means lenders face a new challenge: staying connected to customers who already know and trust them.
Many former customers don’t leave because of a bad experience.
Sometimes they leave simply because another lender happened to be present when they started looking.
Customer History Is an Asset
One advantage storefront lenders possess is something many digital-first competitors spend years trying to build.
Customer history.
You may already understand how certain customers interacted with your organization. You may know whether they completed previous loans successfully. You may have insights that simply aren’t available when evaluating an entirely new relationship.
That doesn’t mean every former customer is a fit for every product.
But it does mean that existing customer relationships can be an important asset when thinking about growth.
Particularly during a transition to digital lending.
A Different Way to Think About Growth
When lenders move online, it’s natural to focus on expanding reach.
And in many cases, that should be part of the strategy.
But growth doesn’t always have to begin with someone you’ve never met.
Sometimes it begins with reconnecting with people who already know your brand, understand your process, and have done business with you before.
As customer acquisition costs continue to rise across many digital channels, lenders are increasingly looking for ways to maximize the value of relationships they’ve already earned.
For organizations moving online, that means developing a strategy not only for attracting new customers, but also for identifying former customers who may already be back in the market.
Because while digital lending creates new opportunities to reach new audiences, it also creates new opportunities to reconnect with familiar ones.
Reconnect With Customers Who Already Know Your Brand
As lenders expand online, retaining visibility into valuable customer relationships can become just as important as acquiring new ones.
VIP Finder helps lenders identify former customers who may already be back in the market, creating new opportunities to reconnect with people who already know and trust the brand.
Learn more about VIP Finder or schedule a strategy call to explore what’s possible.
Bloom Analytics provides analytics, consulting, and technology solutions designed to support lending operations. Lending decisions, underwriting criteria, and compliance obligations remain the responsibility of the lender.