Effective customer communications can be critical to your business operations as everyone in our country tries to navigate the future. Many of your customers may continue to face financial hardships as communities are recovering and resuming normal daily activities. Offering relief programs to your customers is almost expected but making sure that you are offering a helping hand to your community right now – like you always have – is easier than ever with solutions, like a Skip A Payment program.
Whether your customers are looking for some extra cash or simply need to make extra room in their budget, offering a Skip A Payment program is a valuable offer for your customers with personal loans. Skip A Payment programs are particularly popular around major holidays, back to school season, etc. Even though there tends to be greater need during those specific times of year, this program is beneficial to offer year-round.
Skip A Payment Program Considerations
While each financial institution’s Skip A Payment program may be unique, there are common considerations for you to take into account.
- What type of loans do you want to allow customers to skip a payment for? Skip A Payment loans typically include personal or auto loans. Exclusions may include mortgages, home equity, credit cards and new loans within a defined time frame.
- How frequently will you allow a customer to skip a payment? The number of times a customer is allowed to skip a monthly payment is usually defined within a 12-month period.
- Will there be a processing fee? If so, how much? Typically, there is a processing fee between $20-$40 per loan payment skipped.
- How many days prior to the loan due date does a skip a payment request need to be made? A minimum of 5 business days seems to be the norm.
Skip A Payment Program Communications
Communicating your Skip A Payment program extends support to your account holders with a solution relevant to their financial needs. Your target audience for this offer should be customers with an open and active loan in good standing that aligns with the considerations determined for the above items. For Core iQ users, the Loan Listing Report will allow you to segment your audience effectively for this offer.
The creative and copy you create for these communications can be personalized and engaging to encourage your customers to respond. Utilizing email and direct mail creates an effective multi-channel approach to engage your current customers about this special program. In direct mail letters, simple request forms may be utilized, including variable account information like name, address, and last digits of the loan account number to make the Skip a Payment process easier for the customer. The form can then be brought into a branch location or mailed in with the processing fee. Emailing a link to digital request forms on your website is also an effective and convenient way to submit these types of requests.
In addition to the above considerations, there is certain criteria you want to emphasize in your communications.
- Standing: Loan must be in good standing.
- Credit Rating: Skipping a payment will not affect the customer’s credit rating.
- Terms: Typically, the skipped payment will be added to the end of the customer’s loan, extending the term of the loan by an additional month.
- Interest: During the skipped months, interest will continue to accrue.
Get started today! Our team has created some free direct mail templates to assist with your Skip A Payment communications. Simply download your favorite from the list below.