When you go fishing, you first decide where to go. You put the “where” first in your decision-making because location determines not only if you will catch any fish but how many. Whether it’s a trout stream in the Rockies or a kelp bed in the Pacific, that first decision will shape the whole experience. Only then do you match place with gear, fly-tying, lures, and the rest. Naturally, it’s the same with reverse mortgage leads. Who knew?
Many, if not most, HECM and reverse mortgage lead vendors offer a process, perhaps a referral from a telemarketer, or a list of postal or email addresses that passed through various demographic filters. Few emphasize “where” those potential customers actually live. Geographic selects rarely get under the Zip Code level. And most Zip Codes are demographically quite diverse.
Enter geodemographics. Remember those neighborhood types with the clever names: Shotguns and Pickups, Kids and Vans, Suburban Elites, Mussels and Malbec? Under the assumption that “birds of a feather flock together” retailers and marketers back in the day rolled out their store networks and brands to great success. They replicated their “best customer” base by finding trade areas with similar neighborhoods across the country. That is much harder in today’s retail environment, but it doesn’t mean that similar people don’t still populate relatively homogeneous neighborhoods.
It’s no secret that Baby Boomers – the generation that’s flooding the reverse mortgage market these days – like to do things differently. Ironically, the generation that travelled extensively as young adults and thought nothing of moving their family across the country in search of good jobs, is now more inclined to “age in place.” They’re comfortable with their current digs and hangouts. They’re less likely than their parents to flock permanently to Florida or Arizona, though many will try snowbirding. They are more likely to stay put in retirement, downsize locally, and just pack up the RV for a little adventure. In short, geodemographics still works for them.
TGE Demographics implements a geodemographic process, along with the all-important demographic filters, to develop reverse mortgage / HECM prospect addresses. The result is a collection of “hot spots” that contain Baby Boomers interested in the options and financial flexibility offered by a reverse mortgage. Household income, mortgage status, and relative home value play a role but also neighborhood stability and length of residence. And among friends and neighbors, the reverse mortgage discussion may also come up around the BBQ or on that next fishing trip to wherever.