In the recent article by Chris Clow of Reverse Mortgage Daily, he did a fascinating job in outlining the perspectives of how to proceed with the Reverse Mortgage naming debate.
I’m sure many of you understand how crucial digital marketing will be in generating Reverse Mortgage leads.
With that being said, without the industry agreeing on an umbrella term will result in some originators losing out on potential leads.
Why an Umbrella Term is so Important
So, if one of the major players comes out and uses a term for private reverse mortgages, then you run the risk of that term not necessarily being the industry term of choice but becoming the consumer’s term of choice.
Although you may have this fantastic Reverse Mortgage product and a product name you feel is appropriate, if the consumer is not searching for your product name, the odds of your business being found are small. The majority of the leads will go to the term used by the large brand because it is what’s most popular amongst consumers.
This is important to understand and consider.
To better understand, if your company’s product is called ‘XYZ Loans,’ but people were introduced, read and are searching for ‘ABC loans,’ then you run the risk of your business never being discovered in search results.
Why an Umbrella Term is better for the industry
For example, in the digital space, if I was to mention the brand SUMO. If you were not in the space, you wouldn’t be aware that this brand is a large and trusted company that helps websites with lead generation.
Until I described what it was, you would have had no idea what SUMO was supposed to mean, but now that you know they could help you with your lead generation on your website, you may be more interested in learning more about it because of what they can do for you.
The name doesn’t matter as much as what the product can do for you.
Education is a large part of Reverse Mortgages, so regardless of the term, consumers will have to be educated on it.
With a unified Umbrella Term, every piece of content that is created will help with the education of Private Reverse Mortgage products and how they can help seniors in retirement.
The industry can set the narrative
If the industry decides on a unified term, we can begin to create that narrative. We want people to understand the facts, not speculation surrounding private and HECM reverse mortgages.
It would be ideal if an article created by a trusted source like NRMLA or ConsumerFinance.gov was able to be associated with the products you offer as well.
If they learned about ABC loans and you try to educate on the same type of loan but refer to it as XYZ loans, it could potentially confuse consumers.
There is already enough confusion and misinformation in the industry. Keeping things simple is always a good choice.
Competing with various private reverse mortgage names could cause unnecessary friction in the origination process.
In when it comes to how to use a term, I think a term funnel would be appropriate.
A term funnel is a particular set of rules set by an industry to help educate and build trust around products and services, minimizing confusion.
For the Reverse Mortgage industry, an umbrella term should be used during much broader forms of communication. Then a combination of the umbrella term along with the company branded terms can be used during the consultation process to explain multiple product options. Finally, after a senior selects a product, then the company branded term can solely be used in further communication.
At the top of the funnel, you want all communication to be consistent to help consumers learn about private reverse mortgages as consistently as possible. Reverse Mortgage professionals should use this term during interviews, on their website, podcast, Ads, or any other form of communication that can be seen by the masses.
This is where the consumer has received enough information and wants to learn more about private reverse mortgages from originators. You don’t want to detour from the umbrella term entirely at this point since it is what they are likely most familiar with. If you start referring to it as something different, it is possible that confusion can set it. Lead them into your company branded options.
This is the point where the consumer has picked a product option that they feel will work best for them, and the remainder of the communication is left utilizing your company branded product term.
Digital marketing is playing a more significant part in senior’s lives, and educating themselves on particular topics is one of the things seniors are doing online most often.
Purely from a digital marketing perspective, a unified term is undoubtedly one of the best things that can be done for the long term growth and education of the rapidly growing private Reverse Mortgage products.