The Problem >>

The SBA reported loan defaults of almost 12% for 2008. According to the Coleman report, 13.4% of franchises defaulted on SBA loans in the same year. 

Igenti believes that the high default rate is, in part, because many organizations don't use the best means to market their services and continue to operate using outdated, expensive, conventional, prospect marketing processes. Most have not embraced the "new media" online business processes and database marketing processes that can provide advantage by significantly improving operations, reducing costs, and providing a low-cost means to drive new revenues.

The reasons may be due to lack of awareness, lack of time, lack of skills, not knowing how to implement, or simply being afraid to try new things. But for whatever reason, these "old process” businesses will often have a more difficult time succeeding and will result in greater risk of loss to the financial organizations that lend them money.

Example:

Organization “A” uses a conventional process such as postal mail to send 12 monthly communications to 5,000 customers and prospects. They will likely spend over $42,000 (postage, print, etc.) for those communications. Their competitor, Organization “B”, can send 52 weekly communications using email campaigns with social media links to those same contacts for approximately $700. And the email communications will produce better results!

Which organization do you believe has greater chance for success?