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Acquisition
Boost home equity volume during off-peak periods
The Client
Regional retail bank
The Challenge
Our client wanted to spread its home equity acquisition volume throughout the year. Traditionally, this area of their services would grow during two specific seasons. This would leave a lull in driving new accounts in the remaining two seasons. The client also wanted to generate new equity outstandings at a time of falling interest rates by offering an appealing fixed-rate loan. Marketing costs needed to be recouped within one year of the start of the campaign.
The Breakthrough
A full campaign drop proved that larger scale mailings could achieve high profitability as a result of efficiencies in production volume by the model. Outbound telemarketing using a consultative approach featuring the full spectrum off the product line proved to be a less costly and more effective selling approach that resulted in a double-to-triple response rate over direct mail alone. With follow-up outbound calling to a direct mail campaign, lift was obtained in lower segments over that of direct mail alone. An inexpensive postcard proved more effective than a traditional, full-copy direct mail package in the mail/marketing approach.
The Win
Wins for the client:
- This campaign generated such success that the bank now regularly uses off-peak programs.
- By combining all of these elements, our client achieved ROI in less than 12 months after the campaign launch.
- The projection for account balances indicates that a return of 600 percent will be achieved over the next five years.