How Technology Can Keep Customers Engaged Over the Lifetime of a Loan

Technology now enables lenders to stay in much closer contact with borrowers throughout the lifecycle of the loan.

How technology can disrupt the auto finance space was a recurring theme at the 2014 Auto Finance Summit in Las Vegas last week, as well as how companies can react and use that technology to their benefit.

ChannelNet, a web-based multichannel solutions provider, offers its clients personal microsites for consumers with targeted marketing offers aimed at creating personalized touches throughout the entire lifecycle of a car lease. The idea, Paula Tompkins, ChannelNet’s chief executive and founder told Auto Finance News, is to engage customers while inspiring loyalty in a much more cost-efficient way for the lender than in the past.

“When a customer has a new loan or lease, we will push out a unique microsite that’s exclusive to them,” Tompkins said. “The beauty of these things is that in the old days, you would send a very elaborate paper kit welcoming the customer. That paper kit may cost $5, $6, or $7 dollars, but we can cut the cost dramatically. You don’t have all those paper costs, or mailing costs, and everything you send to that customer is about them: their car, their dealer, their service plan, their information.”

Through the microsite, companies can reach out with offers from dealers, loyalty programs, mobile app upgrades, or extended service packages available to the customer throughout the lifetime of their lease, said Tompkins. Companies also have the ability to reach out to customers as they reach the end of their lease, to offer pre-approval on a new lease, or gauge customer intent.

“It depends on each of our clients and what they have in the way of services, and what they want to accomplish,” Tompkins said. “And what are the touch points and what do we want to communicate at each of those touch points? It’s a lifecycle. The goal is to keep that customer engaged, so when they come back in market maybe we want to do a customer service survey, how was your purchase experience with the dealer, how was your experience in the F&I office, what can we do better?”

ChannelNet, which was originally started in 1985 by Tompkins, currently boasts companies like Hyundai Motor Finance, Kia Motor Finance, Toyota Motor Credit Corp., Ally Auto, and BMW Financial as clients.

“We started working in this area with BMW in 2006; that sort of led the revolution, and they are very forward thinking,” Tompkins said. “Up until now, the captives have been more aggressive. We’re just now starting to get more interest from banks that have large auto divisions and talking to them about this. And we’ve got some good stats. Customers are five times more likely to engage with you in the first 90-100 days than at any other point. So it’s very important that you dialogue with them, and whatever you are trying to accomplish with them, that you accomplish that and start early in the cycle, not just at the end.”