Marketing for the Future continued on page 24 David Arnett Typically, less than five percent of people who interact with AAG’s advertising end up taking out a reverse mortgage, says Moschner, who sees potential in bringing even more people across the finish line. “That’s really the upside for us.” At the top of the sales funnel, the reverse industry should focus on creating awareness of the product but also the value of home equity as an element of retirement planning, Moschner says. “We can change the conversation a bit away from a reverse mortgage, which is based on age, and get people thinking about home equity as an asset alongside other tools,” he explains. Marketing should also address the barriers that often prevent people from thinking about a reverse mortgage, Moschner says. While stigmas have faded, plenty of myths and misconceptions remain. “Based on the research we’ve done, people believe they know what reverse mortgages are, but they really don’t,” Moschner says. He sees potential in using humor and more creative approaches to reengage potential borrowers who may think they know what a reverse mortgage entails. “It can’t just be more education alone because people are tuning us out. And when people are tuning you out, you have to shake them up a little bit,” he says. “There’s too much of a gap between perception and reality.” Once people are in the sales funnel, marketers need to ensure their messages account for the diversity of the 62-plus population, Moschner says. Some may be about to retire, while others have been retired for years. Also, large groups of widowed and divorced retirees have needs that may differ from others in the same age group, Moschner says. “A one-size-fits-all approach is never going to be optimal,” he says. Moschner sees technology as a way to automate and personalize the customer experience, resulting ideally in more borrowers. But marketers also need to study at what points people fall out of the sales process and then fix anything that needs to be fixed. “It’s going to be a continuing effort for us,” he says. While lenders should be aware of the regulatory risks of targeting ads on social media, executives say, there are still plenty of ways to reach potential borrowers. Cherry Creek Mortgage uses a technology called geofencing to advertise in 55-plus communities, as well as search-based advertising around keywords that potential borrowers may use, says David Arnett, chief marketing officer for the company, based in Denver, CO. Streaming TV services, which exploded in popularity during the COVID-19 pandemic, have proven an effective tool, as well, Arnett says. Ads on cable and TV services allow for more effective targeting and tracking. Depending on the internet provider, marketers can figure out who saw an ad and then who visited a website for more information. “We definitely believe in a multilayered strategy,” Arnett says. “You can’t just put out Facebook ads and expect to get business.” Facebook still has a place in the company’s marketing plan, of course, mostly for raising awareness of the reverse product. But Cherry Creek also has been eyeing use of the Nextdoor app, a neighborhood-based social media tool that people use to communicate within communities. “One thing about social media is that what’s hot right now is not going to be hot three or four years from now,” Arnett says. “There are always new platforms coming online, and finding the right audience on the right platform is crucial.” Cherry Creek also recognizes the value of personal communication as part of the sales process, Arnett says. The company has been training its forward-side loan officers so they can start to understand the process for closing a reverse loan. Those officers can then comb their databases to find customers who might be interested and eligible. A reverse mortgage specialist then helps forward officers initiate the conversation and is with them every step of the way throughout the process. “Our approach REVERSE MORTGAGE / MARCH–APRIL 2023 23
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