How Cutting Corners on Marketing Can Cost You More Than Expected: A Real-World Lesson in Strategic Partnerships

I had the privilege of working with a national patient financing company to roll out a nationwide patient loan program for a large enterprise. The project was ambitious, with over 150 locations to manage, but everything was progressing smoothly during the pilot phase.

Our team worked hard to ensure the program was customized to meet the unique needs of the client. It wasn’t just about offering a standard loan product. We tailored the program to fit their business model, ensuring it worked seamlessly with their existing processes. The client was happy, and their staff loved our exceptional customer service and dedicated support.

But then, a few months into the post-pilot launch, things took a turn.

The Problem Emerges: A Sudden Drop in Loan Approvals

The VP of Finance reached out to me, concerned about a significant drop in loan approvals. The approval ratio had taken a nosedive, and it was costing the client a large number of lost cases. We needed to get to the bottom of this quickly, as the stakes were high.

Naturally, our first step was to investigate the key areas that could have affected loan approvals. We started by speaking with the credit department: Had the credit scorecard or lending criteria changed? The answer was no. Next, we reached out to the technology team: Could there have been a software glitch or a bug? Again, everything was functioning as it should. We were running out of leads.

The Breakthrough: A Simple Question

After a few days of trying to figure out what had happened, one of our lending executives asked a seemingly simple question: “Has the marketing department made any recent changes?”

It was a lightbulb moment. The client's marketing department had recently switched to a new lead generation firm in an attempt to save money. The firm was bringing in a larger volume of leads, but there were two major problems:

1. The demographics of the leads were different from the initial, more qualified group.
2. The zip codes the new firm targeted didn’t align with the areas that had previously produced higher-quality applicants.

In their effort to cut costs, the marketing team had inadvertently caused a shift in the quality of the leads coming through. The new leads were less qualified, meaning that many of the patients couldn't meet the criteria for loan approval. This directly impacted the approval rate, and the result was a significant loss of potential cases.

The Cost of Cutting Corners

At first glance, it might seem like a small change. After all, the marketing team was just trying to save money by working with a more affordable lead generation firm. But in reality, this decision ended up costing the company far more than they had saved. The shift in lead quality led to a drop in loan approvals, which, in turn, resulted in a significant loss of cases.

This experience became a valuable lesson: Cutting corners in one area can have ripple effects throughout an organization. The marketing department’s decision had a direct impact on the performance of a well-designed lending program. The team had been working with a tailored, effective solution, but the influx of lower-quality leads disrupted its success.

The Role of Strategic Partnerships

This is where the value of a strong lending partner becomes clear. It’s not just about providing financing it's about being an advisor; someone who helps you navigate challenges and identify potential issues before they escalate. Our team had built a program that was highly customized for the client’s needs, and by working closely with them, we were able to identify the root cause of the problem.

A key takeaway here is the importance of communication across departments. When businesses work with external partners, especially in areas like financing, it’s critical to ensure that all teams, from marketing to tech to finance are aligned. If one department makes a decision that impacts others, it can have far-reaching consequences.

The Bigger Picture: Long-Term Thinking

Ultimately, this experience reinforced an important business principle: Short-term savings can sometimes lead to long-term losses. In the case of this client, trying to save money on lead generation ended up costing them far more in lost opportunities and revenue. It’s a reminder that when making strategic decisions, it’s important to think holistically and consider the potential impact on all parts of the business.

Conclusion: The Value of Collaboration and Alignment

This story underscores the importance of having trusted partners who understand your business from the inside out. When lending companies are brought in to work on patient financing programs or any other financial solutions, they bring more to the table than just loan options, they can help identify inefficiencies, streamline processes, and ensure that all departments are working in harmony.

By aligning all aspects of the business, marketing, tech, credit, and financing, companies can avoid costly mistakes and ensure their strategies are effective across the board. When all departments are working in sync, the results speak for themselves.