Breakout Session II Marketing the 504: A Dual Perspective Tuesday, November 8 11:00 am 12:00 pm Golden Gate Ballroom 2-3

Transcription

1 Breakout Session II Marketing the 504: A Dual Perspective Tuesday, November 8 11:00 am 12:00 pm Golden Gate Ballroom 2-3

2 Thank you to our Alliance Partners 2

3 Speakers Ken Rosenthal, Senior Advisor Lending, Education, Training CDC Capital Markets CDC Small Business Finance Lance Walter, Vice President of Strategic Communications Wisconsin Business Development Finance Corp. Heather McNelis, Director of Marketing & Communications National Association of Development Companies 3

4 A Dual Perspective: Marketing, Its Not 1985 Anymore Marketing or Sales? MARKETING is selling the idea of a product or service to everyone SALES is the one-on-one activity to complete a sale These two areas should be working together, but often they do not communicate on a strategic level MARKETING generates interest and SALES bring in the money

5 1980 s Business Borrower Information LENDER S! Bankers relied upon to be a trusted source of information and options CDC efforts focus on helping lenders understand value/use of 504 CDC CDC Lender controls the introduction of 504 loan to borrower and when/if program gets used

6 Today Business Peers Industry Groups Borrower Research (Largely online) Borrowers have access to more information Competition drives CDC marketing upstream step in some cases Lenders still largely control 504 decision Bank Marketing Business Borrower Centers of Influence (Realtors, Acct, Lawyers) LENDER S! Online Lending, Crowdsourc es ED Orgs CDC C

7 Future Business Peers Industry Groups Millennial Borrowers are 75% of workforce and accelerate online research and expectations CDC s actively market program to get into as many possible information streams as possible CDCs continue to educate lenders Bank Marketing Business Borrower Centers of Influence (Realtors, Acct, Lawyers) LENDER S! Online Lending, Crowdsource s ED Orgs CD CDC C

8 Where to Start Revisit your brand? Are you positioned where you want to be for the future? Who does your message speak to? Expand your thinking beyond the lender world Lenders are still the top priority, but not the only concern Develop tools for today A website that gets closer to an answer for borrowers Content that is interesting, shareable and helps explain you and your products Use data and tools to plan and track effort and evaluate results Utilize online analytics Incorporate demographic and other data Utilize new data visualization techniques to look at your information in new ways Build and implement real sales plans for each Loan Officer

9 Use Marketing to Build Structure for Sales Making a plan bring organizational focus and prevents just doing the same thing over and over Big or Small CDC - Same Questions WHO are we targeting, WHY are we targeting them, HOW will we reach them, WHAT will we say Marketing basics are common, only scale and tactics vary Try new approaches in test areas before rolling out everywhere Train staff to be consistent in messages on both the 504 and CDC An organized marketing plan includes integration with sales and allows for: A more structured salesforce that knows what to do Greater ability to evaluate efforts Differentiates you from your opponents

10 But Marketing is not a Substitution for Sales $

11 A Dual Perspective: Guerilla Marketing Ken Rosenthal, Senior Advisor Lending, Education, Training CDC Small Business Finance & CDC Capital Markets CDC Small Business Finance - Sr. Loan Officer since 1991 Funded over 1, loans exceeding $2 billion My story: Internal CDC Competition CDC to CDC Competition One-to-one networking and marketing face to face. Tactics to make new contacts and get your foot in the door with new people Big Banks / Community Banks / Credit Union Non Bank Lenders Real Estate Agents / Accountants Responsiveness techniques

12 A Dual Perspective: Guerilla Marketing Define your market who should you be marketing to? Define your message different message points for each audience Define your referral sources prioritization 3 classifications / tiers of relationships: A / B / C Develop a marketing plan Do a SWOT Analysis Goals units and dollars Marketing outreach do something unique: What sets you apart? Prequalifcation Be The Expert

13 A Dual Perspective: Guerilla Marketing 504 vs. 7(a): This is war (2016 version): Truly fixed rate 90% owner user financing CDC Capital Markets: wholly owned subsidiary of CDC Small Business Finance Use SBA 504 secondary market to increase 504 loan volume nationwide Expand CDC horizons to market directly to Community Banks to give them rates and terms on the first mortgage to beat their competition - if they win the deal, the CDC wins the deal How do you beat a 25 year fixed rate 7(a)? Only with a 25 year fixed rate year fixed rate 1 st / 20 year fixed rate 2 nd

14 A Dual Perspective on Marketing Lance Walter Vice President of Strategic Communications WBD (formerly Wisconsin Business Development) 4618 South Biltmore Lane Madison, WI Ken Rosenthal, MBA SBA Lending Expert Sr. Advisor Lending, Education, & Training CDC Small Business Finance Company CDC Capital Markets 2448 Historic Decatur Rd #200 San Diego, CA

15 What s Up Next Top Lender Awards Luncheon 12:15 pm 1:30 pm Continental Ballroom 4-5 Keynote Speaker: Maria Contreras-Sweet, Administrator U.S. Small Business Administration Presentation of the Diamond Series Top Lender Awards