Project Description

INCENTIVES: DO THEY WORK?

Objective:

Increase unsecured loans.

Analysis:

The client wanted to determine whether a cash incentive to entice pre-qualified members to purchase would work better than a segmented list without an incentive.

Action:

A group of 18,000 members was first pre-qualified based on a series of criteria designed to find those members with loans outside the institution. Based on that analysis, we believed we could save customers money with a refinance offer. A group was split evenly into two segments. 50% of the group received a pre-qualified offer with a $25 gift card incentive. The second group was segmented based on life stage modeling and divided into four groups. They were not offered an incentive.

Results:

The non-incentive highly-segmented life stage group generated 78% of the responses. With any test, to validate the results one should retest and re-validate. Clearly, highly segmented and personal communications are dramatically more important than incentives.

SOLUTIONS USED

MARQUIS OnTrax | MARQUIS Creative | MARQUIS MCIF