How to Find Customers for a HELOC Offer Letter


In this article, we will be talking about one of the ways that you can identify which customers have a high level of equity in their home, but haven’t taken advantage of a HELOC product. We will explore the following topics:

  • What report works best for finding your loan customers that would be ideal for a HELOC offer
  • What report metrics are most effective at returning a list of customers you could send an offer to

What report works best for finding these HELOC Offer customers?

For this audience, we will want to use the Cross-Sell Opportunity Report, which can be found within the Customer/Member Level tab of the Actionable Reports menu. This report allows you to find customers with certain product mixtures, but are lacking a specific service. In this case, we will be looking for those with a certain loan balance, but no HELOC products.

Which report metrics work best for finding this HELOC audience?


For this report, the following report criteria works best:

  • Customer Type - We will want to set this field to look at only ‘Nonbusiness’ customers for the purposes of this audience. While your product Service Groups should exclude ‘Business’ customers, this will guarantee that we don’t send any offers to business customers.
  • Customer Is Currently Active Within These Groups - For this field, we want to include our real estate loan Service Group. If you have more than one group of real estate loan products, then it's best to start with the broadest of these products groups.
  • But NOT Active Within Any of These Groups - Within this field, we only want to include our HELOC Service Groups. If you have more than one, then be sure to include each HELOC Service Group.
  • Balance Range 1 - Set this field to Total Loan Origination and calculate either the average home value in your area or the average loan origination for your banking institution. We choose this value because we want to target those within a certain range of your middle market share. These customers are typically more likely to feel comfortable taking out equity against their home. We recommend setting the minimum range to $30-50k below that average, and the maximum to that same amount above the average. For our example, we are looking for those with a Total Loan Originations between $200k and $400k.
  • Balance Range 2 - For this field, we want to toggle to Total Current Loan Balance and set the values as follows:
    • For the minimum value, calculate 20% of your maximum Total Loan Origination value. In our example, this would be a minimum of $80,000.
    • For your maximum value, calculate 80% of your minimum Total Loan Origination value. In our example, this would be a maximum of $160,000.

We do this to create a bracket of people with at least 20% equity in their home, and at most 80% equity. This range works well to find individuals who are in the sweet spots of their mortgage, where they might be interested in doing a home renovation or taking a vacation. We recommend starting with these values and working towards a tighter band as you better understand your conversion rates.

  • Only Include Primary Signers, Excluding Others - We want to be sure that this field is set to ‘Only primary signers and their balances’. This will remove secondary account holders from our report results.
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