Studies show that most new and used vehicles are financed for a shorter period than their original financing term, generally for an average of 18 to 33 months. However, exactly when your members will make this new car-buying decision is unknown. That’s why it’s important to contact members during critical periods in the financing term, as well as when the loan is paid off.
The tactical solution is a series of three personalized Auto Buying Relationship Matrix Letters designed to remind members that they can save time and money when they finance their next vehicle purchase at your credit union.
We recommend each letter include a special product/service offer and a value-added incentive. Purely educational letters with a Tell Me More response coupon is another option. However, offering new members a special offer opportunity reinforces the credit union difference and gives them one more reason to maintain their credit union loyalty.
That doesn’t mean you should become a “special rate only” credit union. A “little something extra” is enough. For example, studies show consumers appreciate small loan discounts, as well as co-branded gasoline gift cards and cash rebate rewards. Your direct mail reminder package should also include a brochure or insert, and a response envelope.
The letter and response form copy is printed on up to two different full-color, 8 1/2″ x 14″ letterheads. We can write the copy in a Word file for credit union in-house processing, or we can imprint and mail the letters for you. A minimum of three letters should be mailed. Some credit unions have included as many as five letters in their matrix.
Standard Letter Series
- Members in the 18th to 21st month of their loans
- Members with 9 to 12 months remaining on their loans
- Payoff “thank you” letter and offer