CUSO Home Lending
Empowering Homebuyers in a Transforming Market: CUSO Home Lending’s Strategic Response to Rising Rates and Prices.
The Background
CUSO Home Lending, a leading home lender in Maine, has consistently adapted to serve the dynamic needs of consumers and business owners, working hand in hand with the credit union community. However, the housing market has been undergoing rapid changes, pushing back the onset of the lending season.
In early 2023, interest rates continued to steadily rise, with the 30-yr fixed mortgage rate nearing 7%. The median home value in the US jumped to $362,500, a 17.9% increase from early October 2022, and Southern Maine’s housing costs rose by 12% YOY. With homeowners retaining their locked-in rates and banks becoming more conservative in lending, the market saw reduced demand for home loans and refinances. These factors, among others, resulted in 35.5% decrease in mortgage origination nationwide.
The Challenge
The changing dynamics of the housing market presented significant challenges. The year began slower than anticipated due to a delayed lending season, intensifying the pressure to meet objectives. Mortgage rates, which have been on the rise since March 2022, sometimes exceeded 7%, creating barriers on both the supply and demand sides. In this challenging backdrop, CUSO, being a trusted client of The Lee Group for three years, sought innovative, responsive, and results-driven strategies to generate additional leads and boost loan volume.
The Solution
Recognizing the shift in the market and the decreased desire among many to buy homes, we saw the need to adapt our strategy. Focusing on a more defined audience segment, we targeted first-time homebuyers and those seeking affordable housing options, leveraging insights from CUSO consumer behavior studies. This led us to reevaluate our channels and refine our tactics.
To address the delayed lending season, we expedited the rollout of a digital campaign to increase lead volume for CUSO. This campaign was based on an in-depth analysis of the company and market trends. The strategy included targeted display ads, SEM, and paid social campaigns, emphasizing CUSO’s personalized guidance, diverse loan programs, and the credit union advantage.
We crafted a narrative that resonated with the aspirations of potential homeowners, showcasing CUSO’s commitment to enabling their dreams despite economic challenges. The strategy, initially a short-term fix subject to testing and optimization, proved so effective that it became a long-term component of our marketing strategy.
Lead Generation Digital Display
Lead Generation Digital Display
Organic and Paid Social
Organic and Paid Social
Information-rich Landing Page with Lead-capture Form
The Results
The digital campaign exceeded our 20% lead increase goal, particularly among homebuyers seeking affordable housing solutions. CUSO’s industry presence was strengthened, with the campaign positioning them as thought leaders. Overall awareness grew with a 258% increase in impressions, and the campaign’s success was evident by a 34% improvement in cost per lead.
Year-over-year digital tactics showcased:
- Digital Campaign Clicks: Surged by 126%.
- Cost Per Lead: Improved by 23% improvement YoY.
- SEM: Click-thru rate increased by 63% and cost-per-click improved by 23%, outperforming industry benchmarks.
