Loan Referral: a $400m Institution Case Study2015-03-19T08:53:43+00:00

Project Description

LOAN REFERRAL: GAIN NEW RELATIONSHIPS AND NEW LOANS

Situation:

This $400 million financial institution wanted to leverage the relationship with existing households to grow new relationships. The institution was also interested in driving new loan growth.

Solution:

Prior efforts to reach out to prospects had dismal results, while referral and reward programs had not been attempted at all due to the number of peer institutions that tried and failed and the overall complexity of the program – particularly the tracking portion. After seeking help from MARQUIS’ OnTrax and Creative Services teams, the financial institution launched a comprehensive loan referral program. The campaign included multiple customized points of contacts including:

• Direct mail
• Email
• Referral cards at point of sale
• Personal URLs and General URLs to automate the log entries
• Thank you notes to the referring member

Using the automation to log and track the logs made managing the process much easier. The comprehensive program targeted the most likely customers who would spread word of mouth and provided an incentive for them to do so.

Results:

Since its launch 8 months ago, the targeted households in the direct mailing have increased their deposits per HH, increased loans per HH, and increased their average profit. The response rate of the program was just over 2% – a home run for prospecting efforts!

All elements of the program, including marketing costs and the payouts to customers and new customers were considered in calculating the achieved return of $14.16 for every $1 spent.

SOLUTIONS USED

MARQUIS OnTrax | MARQUIS Creative