According to Experian, only 3% of all potential loan applicants actually complete an online loan application. This means that 97% of applicants fall into a bucket of lost potential business. This leaves an obvious opportunity to increase business by doing all you can to increase loan application conversions.
Customers in the U.S. have shifted to a more ‘user-friendly’ approach when it comes to forms and applications online. Unfortunately, many applications online are not very friendly, likely keeping the majority of customers from filling out the entire form. Fortunately, there are a few simple ways online lenders can increase loan application conversions within their business. It starts with understanding why customers are dropping off the form and fixing it.
3 Ways to Increase Loan Application Conversions:
1. Optimize for Mobile.
The internet is a powerful tool – and even more powerful when used on mobile. Almost 53% of all web traffic comes from mobile, so making your website and online applications mobile friendly is vital to driving more loan application conversions. When looking at your application(s) online, ask yourself these questions:
- Are the buttons large enough to easily tap? Your consumers shouldn’t have to search for the submit button.
- How much typing is required? Minimize typing by using checkboxes and dropdown menus – your customers will thank you.
- Are the questions clear and concise? This is important regardless of which device they are using, but since mobile devices don’t have as much screen real-estate as desktops, you don’t have the luxury of lengthy sentences.
2. Keep it simple.
The more time-consuming an application is, the less likely your customers will be to complete it. Every loan application has a certain number of fields that a user has to complete in order to make a proper lending decision. However, depending on what type of loan they are applying for, asking for additional information might not make a big difference in your underwriting decision. To remove some of the unnecessary friction and save your customers time, try using an API to pre-populate information such as birthdate and address they have already filled out.
3. Leave a friendly reminder.
Sometimes all it takes to convert on a loan is to simply give your customers a friendly reminder to complete the application. Life gets busy and we could all use a simple reminder. In lieu of manually dialing or catching customers at an inconvenient time, our DirectDrop Voicemail technology can deliver thousands of friendly voicemails on your behalf in minutes. When you put the power in the customer’s hands, they become more empowered to seek resolution. The more customers feel empowered to seek immediate resolution, likely the more conversions your business will see.
To learn more about how DirectDrop Voicemail can help you increase loan conversions, reach out to us here.