DATA SOURCES: PRE-APPROVAL VERSUS INVITATION TO APPLY
To evaluate the impact of pre-approval when making an offer of credit.
The institution mails a variety of pre-approved campaigns each year. Recognizing the significant target attrition from opt-outs, as well as the stringent compliance requirements inherent in a pre-approved offer of credit, they were interested in testing the results from credit-based offers versus other data sources.
A MARQUIS strategist compiled two data lists of equal size. One list relied upon scores from the credit bureaus in addition to other criteria. The other maintained the same criteria but used propensity and ITA scores in place of FICO information.
Preliminary analysis indicates virtually identical response rates in the two groups, indicating that ITA scores may be a cost-effective alternative to pre-approved offers.
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