Not all credit and bankruptcy customers are deep subprime. The bottom line is next to marketing your own database, consumers that have had a bankruptcy or credit issues in the past are the best conquest responders to marketing. I have talked to several companies in the past that want nothing to do with this segment of the business. It is always surprising to me hear someone ready to write off an entire pool of possible consumers.
Let’s consider the consumers that have had a bankruptcy in the past. Some dealers can’t wait to send a letter to a consumer that just had a bankruptcy discharged and I don’t blame them. This group of consumers is normally hungry to reestablish credit and if you have the right lenders and inventory, this can be a very profitable segment.
What I don’t see enough of are companies marketing to people that are 3-6 years out of the bankruptcy. Some believe that the sooner you get them the better. In some cases, that might be true. I can tell you that without a doubt, when you market to those freshly discharged bankruptcy consumers you will be one of several. The group that I know gets often overlooked are those people that had a bankruptcy discharged several years ago or longer. What I love about this group is they are marketed to far less, and in many cases they have started to reestablish credit.
A number of these people have already acquired that first awful “get back on my feet loan” and are looking for something better! You just have to be the one to offer it to them. A bankruptcy is a significant experience and no one ever forgets they had one. That said, your marketing piece that references this past issue WILL get their attention. What it can also do is drive a no longer truly subprime, but not yet fully prime, consumer into your store. Did you know that marketing list have also evolved to this type of recipient? We can now reference the type of bankruptcy, the county it was filled in, and relevant dates.
Consider the above next time you think all Bankruptcy programs have to be deep subprime.
J Franco Marketing
303 339 0103