Project Description

Objective:

This $700 million bank located in Pennsylvania sought to increase its home equity loan portfolio. Rather than trying to acquire additional loans via new customer acquisition, the bank sought to communicate with current customers who were likely to have home equity loans elsewhere.

Analysis:

An analysis was executed using MCIF data and analytics, along with demographics and propensity models, to determine who was in the market for a potential home equity loan refinance.

Action:

The complex part of the project was the data analysis. Demographics, psychographics, and predictive models were used to target a group of 4,000 customers. The execution was simple and elegant. A straightforward, direct offer to apply was provided to the target market.

Result:

The mailing brought a response rate of 3.49%. Among the households targeted, 150 new accounts were opened with balances greater than $2.8 M. This translated into a return of $7.47 for every $1 invested in the marketing effort.