SUPERPAWN CASE STUDY
Increase loan base
Although this chain of 50+ locations in three states enjoyed a significant retail business, a large percentage of their business continued to be the interest fees on consumer loans. The pawn business is strictly regulated in all of the states where SuperPawn operated stores. With regulations limiting the ability to offer financial incentives to potential loan customers, and with a finite amount of demand, it was determined that the best opportunity to increase the volume of loan business was offered in promoting the superior SuperPawn customer experience in the hopes of luring loan customers away from competitors.
A series of :30 and :15 second TV spots was created to present SuperPawn as a “different” kind of pawn operation. The spots featured unknown actors portraying real customer experiences. Simple, interview-style comments about the ease of the process and the friendliness and efficiency of the staff, along with gentle reminders of the situations where a collateral loan offers a valuable option for borrowers.
The spots ran for six weeks, primarily on fringe network, prime time cable and daytime talk and soaps. A total of $55,000 was spent for media and production.
Just over $1 million in new loan revenues in the twelve-week period beginning with the initiation of the campaign. Historically for SuperPawn, on average, each dollar loaned results in a dollar in profit over the space of 12 months. Thus, $1million in new loans translates into $1 million added to the bottom line profit for the year. Needless to say, the client was pleased.