Project Description

LOAN GROWTH: MULTIPLE OPPORTUNITIES TO SAVE

Objective:

To obtain new loans that were held at other institutions.

Analysis:

Realizing that their current households had millions of dollars in loan balances elsewhere, this institution wanted to recapture some of these loans. This approach would allow the institution to capitalize on their existing relationships. The recapture strategy was further enhanced by the use of balance and payment information available through the credit bureaus.

Action:

A loan savings letter was developed, showing new monthly payments that could be attained by switching an auto loan, personal loan, or credit card to the institution. Recipients could see at a glance what their new payments would be, providing an easy comparison to their current payments.

The payment example boxes were variable, as were the disclosures, so each recipient saw only the information that was relevant to their particular situation.

The letter also included variable branch information, making it easy to find the nearest location.

Results:

With a response rate of 2.9%, the campaign brought in new loan balances of more than $1 million. When indirect responses were included, the institution achieved new balances of more than $4.1 million and $59,000 in profit.

SOLUTIONS USED

MARQUIS MCIF Services | MARQUIS Creative