Project Description

To gain new mortgage and home equity loans

The $240 million credit union had an ambitious agenda for increasing their home loan portfolio. Rather than conducting a broad mailing, they wanted to target current members who would be most likely to respond. They also recognized the value of supplementing direct mail campaigns with email follow-ups and paired them together for nearly every project they conducted with Marquis.

With the help of their Marquis consultant, the institution identified two target groups. P$ycle segments and propensity models provided highly-focused mailing lists while avoiding the complications and expense of credit bureau data.

The first target group had home equity loans at the institution, but no mortgage; the second group had no home equity or mortgage with the institution but showed a propensity for one or the other.

Letters and emails were sent to both groups, describing the benefits of the credit union’s home loans and offering $400 off closing costs on a mortgage refinance.

Target 1 – Home Equity but no Mortgage
4 mortgages, 10 HELOCs/second mortgage loans
4.15% response rate
$560,712 total new loan balances
$9,218 total margin
1,181% ROI

Target 2 – No Home Equity or Mortgage
8 mortgages, 8 HELOCs
0.67% response rate
$1,308,162 total new loan balances
$21,692 total margin
323% ROI