As more and more Baby Boomers are aging and reaching age 62, the reverse mortgage market is bigger than it has ever been. Mortgage companies should capitalize on this influx and be aggressive with promoting reverse mortgages to both Boomers in their sixties as well as older seniors. Direct mail has proven to be the best way to market these loans since it has sophisticated targeting capabilities and also because this audience is accustomed to receiving mail. Read on to see our best tips for marketing reverse mortgages.
Segment By Age
There’s a wide range of people who qualify for reverse mortgages. There are Baby Boomers in their sixties, and then there are those from the Silent Generation who are approximately age 75 and older. While a 63-year-old and an 85-year-old both qualify for a reverse mortgage, you shouldn’t market to them in the same way. Segmenting the contacts on your data list is the first step in setting your campaign up for success.
With your data segmented by age (and any other attributes that allow you to pinpoint the audiences you’re targeting), you’re able to create more personalized direct mail content. Personalization is critical for making sure that your offer is presented to your audience in a relevant way. People take out reverse mortgages for a variety of reasons. Those between the ages of 62 and 75 often apply for a reverse mortgage to pay for home improvements or for traveling now that they’re retired. People age 75 and over may want this loan to cover the costs of a nursing home, in-home health care, or medical bills. Your written content should reflect this. You don’t want to write about how a reverse mortgage can help cover a spouse’s nursing home costs for someone in their sixties. Similarly, it wouldn’t make sense for a mailer for an 85-year-old to say that with this loan they can finally travel to Europe since people that age aren’t as likely to do extensive traveling.
Sound Honest & Prove Legitimacy
On the topic of written content, it’s important to mention that your tone needs to sound honest. Seniors are the targets of phone, internet, and mail scams. Sadly, many elders have fallen for these traps and have been swindled out of thousands of dollars. As awareness of these scams has increased, skepticism of ads regarding anything financial related has increased as well. Don’t sound pushy or gimmicky. Your offer shouldn’t seem too good to be true. You can also help prove your offer’s legitimacy by making sure that your company name, website, and phone number are listed prominently on the mailer. This way they can research your business to verify that it’s a real company and get in contact with you for further reassurance.
Direct mail, like any other marketing medium, isn’t a one size fits all. As we already mentioned, people eligible for reverse mortgages represent a vast age and demographic range. The images you use in your mailers should be representative of the people to whom you’re marketing. Images of 60-year-olds for those in their sixties, images of 70-year-olds for those in their seventies, etc. Doing this creates a more personalized experience and makes it more likely that your mailer will resonate with your audiences.