By: Kari Michel
What are your acquisition strategies to increase consumer lending and gain market share? This blog will discuss new approaches to create segment-based targeting campaigns and the ability to precisely time the offer delivery with consumer needs.
The most aggressive and successful banks are using need and attitudinal segmentation, coupled with models that identify consumers in the market for loan products. The return on marketing investment from these refined marketing efforts often exceed 350%, measured on a net of control basis, after all marketing costs.
Here is a case study, using Experian tools, showing how one marketer used segment-based targeting, tailoring and timing to increase their response rate 145% over a competitor’s product. In the highly competitive credit card arena, a new business model is emerging that is dependent on acquiring new accounts from consumers that are grouped into specific behavior segments (Credit Hungry Card Switchers and Case Oriented Skeptics) and looking at consumers that were in the market, as well as had the highest likelihood of opening a bankcard account within the next 1 – 4 months.
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Test Results |
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Total |
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Competitor |
Experian |
Experian lift |
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Quantity |
624,000 |
623,953 |
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Response Rate % |
2.09% |
3.03% |
145% |
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Actual Responses |
13,035 |
18,902 |
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Booked Rate % |
1.64% |
2.24% |
137% |
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Actual Booked |
10,208 |
13,989 |
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Approval Rate % |
78.30% |
74.01% |
95% |
In addition to a 145% lift in response rate, over 3,700 more accounts were booked over the competition. These same tools, “In The Market Models” (developed using credit bureau data) and “Financial Personalities®”, can help your organization have a greater return on your direct marketing investment by increasing acquisition rates.
