The trend of reverse mortgage marketing picked up steam after the crash of 2008. Senior homeowners were struggling to live on a fixed income, and the reverse mortgage presented an opportunity for that to change.
For marketers, introducing seniors to the possibilities of reverse mortgage marketing became clear. With more than 40 million Americans over the age of 65, and that number expected to balloon to 80 million by the year 2050, reverse mortgage advertising has grown to become more than just a popular trend.
What Is a Reverse Mortgage?
Reverse mortgages are typically associated with seniors because they are the ones theoretically living on a fixed, retirement income. The housing crash made surviving on that fixed income far more difficult and put huge amounts of strain on their savings and liquid assets.
A reverse mortgage helps these seniors get paid based on their home’s equity. It also considers the age of the youngest person living in the home. Why this has become so popular is because it offers a fairly sizeable line of credit, allows seniors to keep their homes, and improves their quality of life for the duration of their retirement.
Reverse Mortgage Marketing Strategies
Convincing targets to take a chance on a reverse mortgage is going to take some work. First, you need to start by making them aware that a reverse mortgage is an option. Education is going to play a big role in your marketing, so using the right copy is critical.
It’s also important that you are speaking to these targets on the right platforms. Seniors have different engagement habits when it comes to being marketed to. Understanding those habits will go a long way to determining the success of your campaign.
When deciding on your reverse mortgage marketing campaign strategy, here are some platforms and ideas to keep in mind.
Direct Mail Marketing
The demographic you are targeting for reverse mortgages are more apt to read physical mail. The reason why direct mail marketing will be effective is because it allows you the space to explain the benefits of a reverse mortgage in detail. Be it through brochures or pamphlets, direct mail is the perfect educational platform.
Newspaper Marketing—Remnant Ads
Newspaper advertising is one way to capture the interest of your targets. Older demographics read the newspapers more than anyone else, and so positioning an ad that presents the opportunity of reverse mortgages should have a high impact. You won’t necessarily have the space to explain in detail, but you can formulate the copy in a manner that gives just enough for them to want to learn more. Taking advantage of remnant ads is a great idea because it saves you some money and gives you the chance to run multiple ads throughout your campaign.
You have to be thorough in deciding which magazine to select, but advertising in magazines can certainly be effective. The advantage magazines have over newspapers is color. Again, you won’t necessarily have all space to explain that you would in say a direct mail piece, but you can still produce compelling copy and design to lead your targets to take the next step.
Encourage Targets to Act on Reverse Mortgage
Reverse mortgages is one of those things that people usually won’t act on without some encouragement. Explaining the benefits in detail, showing seniors how reverse mortgages can significantly improve their financial security, and encouraging them to take those next steps will take much more of your effort than many other pitches.
For many of the targets to whom you are marketing, this will be a huge decision. Even though the benefits are present, you have to take the time to let them know all of the repercussions of a reverse mortgage. Being completely open, honest, and transparent in your marketing initiates this trust. It tells seniors that you are genuinely looking out for their best interests. And for a decision of this magnitude, trust becomes the primary selling point.
Expect High Conversion Rates
Reverse mortgages meet a very specific need for consumers. If you are taking the time to do your preparatory work and finding qualified leads, then you should expect to have much higher-than-normal conversion rates.
Provide Take-Home Information on Reverse Mortgages
When you do sit down with a potential client, your goal is to have them leave with a thorough understanding of reverse mortgages. However, most people will want to take a few days to think it over before signing on the dotted line. Make sure that when these clients are leaving your office, you are providing them with detailed information that they can take home. You want the information you give them to reiterate everything you’ve discussed in your meeting.
Involve the Children in Meetings Surrounding Reverse Mortgages
Whether the children realize it or not, they will be involved in their parents’ decision to participate in a reverse mortgage. Once the home is ready to be passed on to the kids, there will be a payoff of the loan associated with the reverse mortgage. If the children want to keep the home, they need the time to prepare financially for what this payoff will be.
Let Seniors Know They Will Not Lose SSI
One of the biggest fears of seniors considering a reverse mortgage is that they will lose their current supplemental security income (SSI) benefits. This is not true. A reverse mortgage is given in addition to SSI, so seniors are actually making more on top of their current benefits.
Don’t Ignore Digital Marketing
We know that direct mail marketing and remnant ads for reverse mortgages are great ways to attract seniors. Let’s not forget about digital platforms, namely blogging. Posting testimonials or writing informative articles online is a great way to educate seniors on the prospect of a reverse mortgage and how it can help improve their lives.
Macromark has everything you need to start your reverse mortgage advertising campaign. We broker the most responsive lists in the industry and help our clients reach their campaign goals. If you’d like to know more about how to kick-start your next reverse mortgage campaign, contact us today.