FOA’s Innovative Marketing and Operational Strategies
Shifting Marketing Paradigms
Finance of America Companies (FOA) is making noteworthy changes in its marketing strategy following its acquisition of the American Advisors Group’s (AAG) assets. This acquisition brought valuable marketing resources that have been positively received within the reverse mortgage sector.
FOA has launched its “A Better Way With FOA” campaign, marking a departure from traditional advertising methods, particularly celebrity endorsements. Kristen Sieffert, president of FOA, stated, “This campaign marks a shift away from traditional celebrity endorsements towards storytelling that reflects real-life goals and aspirations of today’s homeowners.”
The overarching aim of the campaign is to present relatable scenarios that demonstrate reverse mortgages as practical options for financial planning. “Our goal is to create ads that highlight relatable use cases that dismantle stereotypes,” Sieffert emphasized. The campaign seeks to convey the message that reverse mortgages can aid in financing renovations, managing unexpected expenses, and providing peace of mind.
FOA is integrating this narrative across all marketing and customer interaction platforms, anticipating completion of the transition by the end of June. Early results show promise, with a reported “16% improvement in our upper funnel inquiry to lead conversion” within just a month of launching the campaign.
Sales Metrics and Executive Developments
Sieffert also highlighted the company’s robust sales performance, stating that FOA has made significant strides in operational efficiency during the first quarter. Key metrics include a doubling of retail loan funding within the first 30 days of submission and a 40% increase in initial sales conversion rates. Additionally, the “cost per opportunity” metric decreased by 12% during the same period.
In a noteworthy executive development, Jonathan Scarpati has been promoted to chief production officer at FOA’s subsidiary, Finance of America Reverse (FAR). With extensive experience leading the company’s wholesale division, Scarpati will spearhead sales and production strategies across both the wholesale and retail channels. Sieffert congratulated him during the call, stating, “We believe this leadership will be key to helping us unlock the massive growth potential we know is available within our category.”
Scarpati’s promotion, announced in early April, aligns with his recent appointment to the board of directors at the National Reverse Mortgage Lenders Association (NRMLA). He has been integral to the company since 2010 and remarked on the opportunities available in optimizing retail and wholesale operations to better serve homeowners.
Future Outlook Amid Economic Challenges
As FOA navigates various economic uncertainties—such as stock market fluctuations, recession risks, and ongoing inflation—the company is confident that its solutions can support many Americans seeking financial stability. Sieffert expressed assurance in their strategies, indicating a commitment to leveraging customer insights to refine growth and product development.
In summary, FOA is poised to redefine its marketing approach while simultaneously enhancing operational metrics, setting the stage for potential growth in the evolving reverse mortgage landscape.