Here is the absolute final question on payday loans. There really is no way around this one.
Most payday loan customers, whether they are correct or not, feel and act as if they are trapped in a cycle. Without these cyclical customers, can the payday lending industry make money?
I’ve analyzed the customers in my store and the most common number of loans a customer takes out is ONE – ever. One is followed by two, three, etc. So perception is not reality.
Secondly, can you name any business that can survive without satisfied repeat customers? Even funeral homes have repeat customers in the form of families who repeatedly use the same funeral home when a family member dies. Are they trapped in a “cycle of death”?
Isn’t “cyclical” just a negative sounding word for “satisfied”? Do we serve repeat customers? I hope so – it means we are doing something right.
I’ll take that as a “no,” the industry cannot make money without the cycle. These customers, who, as I said, “feel and act as if they are trapped,” are prima facie not satisfied with the services provided.
I worked for a payday lender for eight months, and honest to God, a full 80-85% of our customers were repeat. Dueling anecdotes, though, aren’t helpful. Are there numbers backing up your assertion?
Comments»
Here is the absolute final question on payday loans. There really is no way around this one.
Most payday loan customers, whether they are correct or not, feel and act as if they are trapped in a cycle. Without these cyclical customers, can the payday lending industry make money?
I’ve analyzed the customers in my store and the most common number of loans a customer takes out is ONE – ever. One is followed by two, three, etc. So perception is not reality.
Secondly, can you name any business that can survive without satisfied repeat customers? Even funeral homes have repeat customers in the form of families who repeatedly use the same funeral home when a family member dies. Are they trapped in a “cycle of death”?
Isn’t “cyclical” just a negative sounding word for “satisfied”? Do we serve repeat customers? I hope so – it means we are doing something right.
I’ll take that as a “no,” the industry cannot make money without the cycle. These customers, who, as I said, “feel and act as if they are trapped,” are prima facie not satisfied with the services provided.
I worked for a payday lender for eight months, and honest to God, a full 80-85% of our customers were repeat. Dueling anecdotes, though, aren’t helpful. Are there numbers backing up your assertion?