Rocket’s new loyalty program furthers the Fintech strategy
After an initial focus on mortgages, Rocket Rewards will be expanded to provide discounts on other “ecosystem” offerings, including personal loans and solar panels.
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The nation’s largest mortgage lender is taking another step toward turning its stable of brands into a fintech platform, with the launch of a loyalty program to help Rocket Cos. in achieving CEO Jay Farner’s goal of unlocking the “lifetime value of the client” by cross-marketing other products and services.
For now, the Rocket Rewards loyalty program is aimed at generating more business for Rocket’s mortgage subsidiary, Rocket Mortgage. Prospective homebuyers can earn reward points by reading educational articles, watching videos or using a mortgage calculator to save up to $10,000 on closing costs when financing their home purchase through Rocket Mortgage.
While providing mortgages through Rocket Mortgage is Rocket’s largest business, it also helps consumers line up real estate services, personal loans, used cars and rooftop solar systems through its subsidiaries Rocket Homes, Rocket Loans, Rocket Auto and Rocket Solar.
In the coming months, the Rocket Rewards program will be expanded to provide more ways to earn and redeem points at other companies under the Rocket umbrella, said Jenn Steeves-Kiss, chief experience officer at Rocket Central, the centralized hub for Rocket Cos. fintech platform. .
Jennifer Steeves-Kiss
“What’s most exciting to me is that we’re just scratching the surface of what’s possible with a powerful rewards program in the Rocket ecosystem – whether it’s finding innovative ways to provide discounts on personal loans, free premium Rocket Money subscriptions or even money for the installation of solar panels,” Steeves-Kiss said in a statement Tuesday.
With rising interest rates putting an end to the highly profitable mortgage refinancing boom, Rocket has this year sought to reposition itself as a fintech platform. At the heart of the strategy was last year’s $1.27 billion acquisition of Truebill, a personal finance app that tracks expenses and helps users budget and build credit scores.
Rocket rebranded Truebill as Rocket Money in August and connected personal finance to the rest of the Rocket platform, allowing Rocket to market mortgages and other services to users.
Jay Farner
“The relationships we build and the insights we gain through Rocket Money allow Rocket Companies to create tailored experiences for our customers — ensuring we offer the right products at the right time,” Farner said at the time.
For now, Rocket Rewards is limited to Rocket Mortgage, where users can earn points by reading articles like “Own a Home in 2022 with Down Payment Help” or “Buying a House with Bad Credit: A Guide to Your Mortgage Options.”
After reading an article, users are prompted to take a three-question quiz to earn 500 Rocket Rewards points, good for a $5 credit toward the closing costs of a Rocket Mortgage. Simply signing up for a free Rocket account or completing their first rewards activity gives users a welcome bonus of 7,500 points, for a $75 credit on closing costs.
For Rocket users who aren’t quite ready to pull the trigger on a home purchase, Rocket Rewards is essentially an incubation program for leads, increasing the odds that when they’re ready to buy, they’ll go with Rocket Mortgage.
“We know that not every customer is ready to get a mortgage with us right now, but with bank rewards that can be built up over time, we deliver a value proposition that no other lender in our area can match,” Farner said in announcing the Rocket Rewards.
While Rocket Cos. can offer a wide range of services under a single umbrella, the concept of cross-marketing other products to mortgage borrowers is catching on with other lenders.
Blend Labs provides a software platform and marketplace to banks and mortgage companies that ties together components such as income verification, approval, home insurance, title and closing.
Haven Servicing Inc., a startup that announced an $8 million Series A funding round Tuesday, says it can help mortgage servicers make money by cross-selling products such as mortgages, solar panels and insurance.
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