The payday lending industry has been besmirched by many as exploitation. Lenders have been for their high interests and repressive hidden fees. Target and other retailers are making billions in sales every year because you – by the masses – have a zeal for shopping. Among the industries that have taken great advantage of this American shopping, avidity is the payday loan sector. This is because quite a substantial part of the shopping has been financed by payday loans.
The Pew Charitable Trusts report published in 2012 revealed that the sector pulled in more than $7.4 billion annually. More research has unearthed that at least 12 million Americans take payday loans each year. The success of the payday loan sector can be significantly attributed to the astute strategies that they employ. Here are some of the striking strategies the lenders use to get Target customers.
• Multiple selling
Multiple selling is among the top culprit strategies that lenders use to target customers. There might be certain situations where you need cash and payday loans can come in handy. You might find your loved one has a medical emergency, and you need money for their treatment.
In such a situation, the lender is likely to try and sell you multiple payday loans. Do you know that you can not only settle the medical bill but also buy those discounted grandiose kitchen appliances you saw at target? Call it hitting two birds with one stone. That’s how the lender sells it. Most people see this as an opportunity, not realizing that it’s not them winning but the lender.
• Direct marketing
How many payday loan lenders do you see on your drive to a Target or any other top retailer? This is not a coincidence but rather by design. Lenders like to position themselves in spots where they can easily market their offers directly to the customers. As you do your shopping at Target you come across this plush 75-inch 4k TV you desire, your next stop is bound to be at the payday loan lender you saw driving in. Watch out; you might also end up taking a loan for that double-door fridge you hanker. Some payday loan lenders are aggressive to the point of handing Target shoppers’ flyers and pinning posters.
• Tell a friend
Another strategy that has propelled the payday loan to such prosperity is referrals – you tell a friend, and they will tell their friends. Whether directly or indirectly, all lenders leverage referrals to get customers, especially in large retail stores like Target. Lenders usually offer incentives to individuals who refer their friends. Such incentives include interest, discounts and cash rewards. If you are shopping, it not also hard to find another shopper eying the same items you are willing to share how outstanding an option payday loans are.
As already mentioned, payday loans can be a lifesaver. What matters is why you are taking the loans. Unless it’s necessary, you are better off just waiting to buy the item that you desire when your payday comes. Here you won’t have to pay any exorbitant interests.