How do cash loan products promote and acquire customers?

What is a cash loan?

At present, the definition of cash loans in China is a bit confusing, and there are mainly two mainstream definitions:

1. Any loan that directly issues cash regardless of the scenario or purpose is called a cash loan. This type of loan also includes relatively large cash loans such as bank credit card overdraft withdrawals and Wechat Micro Loans;

2. Provide small (below average monthly income), short-term (within 1 month but not more than 3 months) loans with extremely high comprehensive interest rates to people in society who do not have credit cards or have insufficient credit card limits and need small amounts of cash for emergencies. This is purely online customer acquisition and lending, similar to PaydayLoan or loans with a slightly broader scope.

Considering Qudian and the focus of public opinion, I think the second definition is relatively accurate. If we use the first definition, it cannot be called a credit product and we lose the basis for discussion.

General term explanation

Overdue: Generally speaking, overdue refers to the situation where the payment amount is not deposited into the designated account in full and in time after the stipulated final repayment period.

First overdue payment: the first overdue payment of a user on a platform

Kouzi: It is a micro-loan APP, in layman's terms, it is a software for borrowing money using a mobile phone.

Lending: People who borrow money maliciously and do not intend to pay it back

Risk control: An act of reducing bad debts by auditing borrowers through certain audit strategies, such as Sesame Credit.

Collection: A civil act to remedy outstanding debts. Such as phone reminders, phone follow-up and so on.

Incoming documents: The loan application order you submitted

Average: Each person's application is called an incoming application, and the average amount of the applications passed is called an average.

Application: Submitted loan application order

Re-borrowing: Get the number of users who have applied for borrowing and successfully borrowed more than or equal to n times from the start time to the end time.

Increase the loan amount: Increase the loan amount

Early stage: a certain fee must be charged for the loan, otherwise the loan will not be granted

Liandeng: Joint login, some loans exceed regulations, if you want to cooperate with cash loans, you must conduct joint login

Inventory: the total number of registered users since the launch.

User Profile

For specific data and information, please see a previous article "Who uses cash loans? What are their characteristics? 》

What platforms and products are available on the market?

According to Yingcan Consulting's estimates, the current scale of the industry is approximately between 600 billion yuan and 1 trillion yuan, of which the scale of cash loans in the e-commerce sector is around 500 billion yuan, the scale of cash loans in the vertical and online lending sectors is around 100 billion yuan, and the scale of licensed sectors is less than 400 billion yuan.

What are the customer acquisition channels for cash loans?

There are many channels for acquiring customers for cash loans, but the prerequisite is to know where the users are.

REFECTION

My thoughts on the promotion and customer acquisition of cash loan products

1. Product type

We have promoted products with both upfront costs (a small amount of a few hundred yuan, an upfront fee of more than one hundred yuan, which is refundable if no payment is made) and products without upfront costs (such as 1,000 yuan).

For early products, risk control is relatively loose (basically, as long as it’s not too bad, it can pass), so the conversion rate will be relatively better. If there are early products, the first overdue will be better. There will be more complaints if there are early products.

2. Channels

Currently, there are two types of channels that are more popular.

One is text message, the other is loan overdraft.

Settlement method: SMS is charged at XX yuan per piece. Or it can be based on a registration fee of XX yuan. The loan amount is based on how much money a UV has. Or it can be based on a registration fee of XX yuan.

Data statistics: There will be surplus after the SMS channel is offline. There will be no surplus after the loan excess channel is shut down.

The data from SMS channels is unstable, but the volume can be large. The data of the excess loan channel is relatively stable.

Channel risk: For SMS channels, channel operators can easily receive complaints and go offline, which may also pose certain risks to Party A. Therefore, many parties are unwilling to use SMS channels. There is no problem with over-lending.

3. Fission, content, WeChat account and other channel operations

You can try inviting friends to borrow money, content marketing, personal WeChat account and other operations. What needs attention is the involvement of operational personnel and the need to prevent corruption. Another thing is to be fast, otherwise by the time the operation is well established, the benefits of this industry may be gone. This is also what we want to do in the future.

4. Industry alliance, data exchange

Because of the problem of multiple borrowing in this industry, it is feasible for products to be promoted to each other. Therefore, those who are familiar with each other can form an alliance and recommend high-quality users to each other. This is also what we want to do in the future.

5. Rebate loan

This kind of product exists in other product types, but I don’t think I’ve seen it often in loans. Essentially, we need to solve the problem of preventing scams, so we can postpone CPS (for example, give rewards after the money is repaid. This way, the overdue rate will be lower), or products that have been prepared in the early stages may be more suitable for this. I will pay more attention to this later.

6. Don’t test randomly

Because data query has a cost, don't test channels casually. Try to start with something familiar and reliable.

7. How to choose channels

• First of all, you should choose something you are familiar with, as those you are familiar with generally won’t let you down.
• Secondly, you have to choose a brand. People with a brand generally cherish their reputation and will not mess around and affect their reputation. Generally, bad people will mess around (I have encountered such people who did not respect the spirit of the contract and arbitrarily modified the agreed rules).
• Third, it is best to use a channel that friends around you have worked with and have data.
• Finally, before I cooperate with the channel, I will usually ask him about the approximate data performance, such as conversion from registration to payment, overdue payment, etc. I will tell him that if he has confidence, we will do it, but if he doesn’t have confidence, forget it.

Related Cases

Case 1

This data is for reference only.

This is the data for a testing channel, and the effect is pretty good.

Case 2

Source: My Aunt's Stories