The Financial Brand Insights - Fall 2021

” There is no “one size fits all” approach to marketing financial products. Behavioral data can help you target the right consumers with preapproved offers, but how do you ensure that the best possible offers are generated?

Properly Vetted Offers Yield the Best Results

An applicant’s creditworthiness can certainly change between the generation of the preapproval offer and the submission of the application. However, by leveraging the same criteria in both the marketing stage and approval stage, lenders can achieve a higher return of successfully approved applications. This not only provides a greater return on your marketing investment but also offers a better customer experience. Returning to the example of Tom’s experience with XYZ Bank, had the same criteria been used to generate the offer that was mailed to Tom that was then used to approve/decline his application, the situation would have been different. The application submitted would have been more likely to be approved, and once approved Tom would not have been left feeling frustrated by the experience. Instead, he would now be a satisfied customer. Start with Good Data Sound business decisions are not the result of gathering the most data available, but without a doubt they are driven by gathering the right data. In addition to the traditional credit bureaus, alternative data sources can help tremendously with both marketing and risk management activity. Employing the right data access strategy requires understanding the available data sources in the market and how they can be applied to a company’s unique business needs. An analysis of credit bureau data will demonstrate which credit bureau has the most useful information for potential applicant populations. A proper assessment enables lenders to make cost-effective decisions based on criteria such as product line or geographic area. For example, if your marketing campaign will target a certain geographical location, which bureau has the most available data for the zip codes in that area?

digital media and direct mail. There is no “one size fits all” approach to marketing financial products, and it is essential to know your audience and provide offers via the channel(s) that is most likely to generate a response. Creative approaches are vital and providing links in direct mail to online content can help increase response rates. Behavioral data can help you target the right consumers with preapproved offers, but how do you ensure that you are generating the best possible offers? Which offers will result in the greatest return of successful applicants? Recent studies have indicated that millennials respond well to direct mail, perhaps because they are weary of the constant flow of digital advertising they receive. According to the United States Postal Service, 88% of millennials look through their mail to make sure they aren’t throwing useful information away, and 65% pay attention to direct mail advertising. A well-timed and personalized direct mail offer stands out, feels a bit more legitimate and formal, and has a pretty good chance of getting opened by this demographic. Baby Boomers also respond best to printed materials and have a high likelihood of reading promotional offers received in the mail.

Improve Your Marketing Offers From Applicant to Borrower:

friends and via social media, shining a negative light on the bank and their marketing practices. What went wrong, and how could this anecdote have a better ending and a satisfied customer? Marketing Channels: Is Direct Mail Still Number One? Although some declines in direct mail have been seen over time because of the convenience and reduced cost of digital campaigns, reaching consumers via direct mail remains very valuable to financial institutions. Consumer lenders can drive highly successful multi-channel or cross-channel customer acquisition campaigns via a strategic mix of

By Carson York SVP Business Development at Digital Matrix Systems

Intermingled with a pile of mail on the kitchen counter was a mailer that caught Tom’s eye. A special financing offer with a reasonable interest rate would sure be helpful right now. And according to the letter he was “preapproved”! After reviewing the terms Tom decided to go ahead and apply. Fast forward to Tom’s disappointment and frustration with XYZ Bank when his application ended up being declined. He shares his frustration in conversations with his





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