One of the challenges that many businesses face is how to find and attract qualified customers who are ready to buy their products or services. Traditional methods of screening customers, such as hard credit checks, can be costly, time-consuming and damaging to the customer’s credit score. That’s why more and more businesses are using tools like soft credit pulls, alternative data and scoring models when pre-qualifying buyers.

Soft Pulls

Soft pulls do not require permission, SSN/DOB and do not affect credit scores.  Using soft credit pulls removes barriers that previously existed in accessing your prospect since SSN/DOB is not needed.  These are simply an inquiry to see if they would be approved.

Keep in mind that if a soft pull is done, hard credit pulls are required for every financing deal and should be used when completing the transaction.

Scoring Models

By analyzing your sales cycle, you can discern certain qualities and demographics of your ideal customer.  Scoring models help you to pre-qualify buyers based on these criteria and determine who is a fit and ready to buy according to your own data.

Alternative Data
Data gathered from customer’s linked accounts gives insight into cash flow, repayment capacity, buying power and ultimately generates a clear picture of the prospect. In the subprime industry, many potential buyers have little to no credit history – alternative data looks beyond conventional credit data and provides a better picture of their credit worthiness.

These methods provide valuable information about the customer at the top of the sales funnel:

  • You can match applicants with finance options before requesting traditional credit reports, saving money and reducing hard inquiries that can lower credit scores.
  • You can improve approval rates and speed up the buying process by avoiding unqualified customers and upsell customers once opportunities are identified based on their credit profile and preferences.
  • You can generate more inbound leads while prioritizing more qualified customers, by offering pre-approval online or via mobile devices, and providing personalized offers and incentives.
  • You can ultimately increase your bottom line by closing more deals, increasing customer satisfaction and loyalty, and gaining a competitive edge in the market.

Furthermore, you can use these tools to group your leads and customers into different levels of interest and readiness, such as hot, warm or cold, and adjust your follow-up tactics accordingly. This helps you to prioritize your efforts on the most likely buyers and improve your conversion rates. Moreover, your sales/bdr teams can have more effective conversations with buyers by understanding their credit score and purchase potential.

In conclusion, pre-qualifying buyers with tools like soft credit pulls, alternative data and scoring models can help you grow your business and satisfy your customers. You can increase your sales, revenue and profit margins, while offering your customers a better and faster buying experience. These tools are win-win solutions for both your business and your customers, who can access more choices, better offers and quicker approvals.