Case Studies

Objective

Develop an Onboarding Program that develops client relationships and increases balances.

Analysis

Onboarding begins when a new client opens their first account. The first 90-120 days thereafter provide an excellent opportunity to develop the relationship. Successful Onboarding can lead new clients to seek out additional products and services, effectively reducing the possibility of attrition and increasing both client profitability and satisfaction. The impact on the bottom line for a bank or credit union can be profound.

Action

Working with their Marquis consultant, the financial institution’s leaders developed an energetic Onboarding program to nurture new client relationships. In the first year, they spent just under $80,000 on monthly letters, e-mails and weekly reminder welcome letters for new clients.

Results

The new Onboarding program has generated 1,391 new deposit accounts totaling $7,252,423. Additionally, the program has resulted in 1,284 loans totaling $34,292,413. This Onboarding program was able to prove that every $1 spent generated $4.82 in profit margin. Effective Onboarding can move the client relationship to the next level at a pivotal moment, generating demand for new products and increasing the likelihood that this new client relationship will continue to grow for years to come.

Solutions Used

Marquis Creative | Marquis OnTrax

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Objective

Grow institutional balances with a targeted mix of programs.

Analysis

This $247 million credit union needed to grow its membership and increase balances from each current member relationship. To do this, they targeted specific member needs, and then shared the value of specific products and services available to address those needs.

Action

The credit union worked with their Marquis consultant to co-develop a comprehensive action plan that included new programs aimed at specific customers and products, including:
• Onboarding and Reboarding letters
• Daily TriggerPro letters recognizing members’ anniversaries and birthdays, and letters to teens inviting them to open accounts in order to grow the next generation of members
• Invitations to apply for Mortgages, Auto and Credit Card Loans
• Business Onboarding letters
• Credit Trigger letters

Results

Over the course of four years, the institution has achieved better results while spending less. A yearly summary of gains shows:
• Year One: the institution implemented five new programs. With a budget of only $34,000 and a limited time frame, they gained new balances of $750,000 and realized a profit of more than $15,000.
• Year Two: the number of programs increased to 11, and response rates rose to 3.48%, with an ROI of 348% and more than $17,463,000 in new balances.
• Year Three: the program count had grown to 12, with some DAILY programs to targeted groups, and total balances gained exceeded $33,000,000.
• Year Four: the credit union had implemented 15 programs, all running on a daily basis. The results show more than $35,577,000 in balances gained and an ROI of 400%.

The best review of results over the past years comes from the client: “It was the first time we set our product goals and had Marquis execute the Marketing Plan utilizing them. We did 95% of what Marquis recommended and had these growth figures! I asked for a promotion to increase member growth. Marquis came up with the “giving back to the community” free turkey dinners. Our membership growth through October was a steady 2%, but [in] November and December [it] almost doubled at 3.58%.”

Solutions Used

Marquis Creative | Marquis OnTrax

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Objective

Book new loans with highly-qualified customers.

Analysis

This $500 million institution offered competitive rates on credit cards, auto loans, consumer loans and home equity lines of credit. The institution wanted to target their most credit-worthy customers with compelling, prequalified offers.

Action

A Marquis analyst developed a multi-channel loan savings campaign using credit bureau data. The loan type providing the highest savings was highlighted, with a specific rate and savings amount. Other loan types were mentioned as well, with sample rates and payments included.

The execution of the campaign integrated these Marquis solutions:

• OnTrax – An MCIF expert provided data analytics to ensure proper targeting and outstanding results.
• CallTrax – Follow-up phone calls were coordinated through the Marquis CRM system for seamless integration with front-line staff.
• Creative – The message, strategy and format all came together thanks to the Marquis creative team. Every step was handled in-house, from concept through production.

Results

With a response rate of 4.28%, the institution gained $214 in loan balances for every $1 spent on this campaign.

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Objective

Gain new mortgage and home equity loans.

Analysis

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.

Action

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.

Results

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

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Objective

Simplify marketing approach to yield robust results.

Action

A $1.7 billion credit union implemented a consistent, uncomplicated communications plan, reaching out to two groups of members to say “welcome” or “thank you.” At the end of a year, the results exceeded all expectations.

The first program’s target group consisted of new members, traditionally considered prime prospects for new products and services. A monthly matrix led this group through a series of letters and emails discussing checking, eservices, investment services and a variety of loans. With a direct response rate of 12.80%, the program generated loan and deposit balances exceeding $39 million. Indirect responses accounted for an additional $11.5 million in balances.

The second program sought to capitalize on the credit union’s relationship with high-usage and long-time members. The idea was to reach out to these members on a personal basis, thank them for their business, and strengthen their ties with the credit union.

Each quarter, the top 50 members were identified at each branch for tenure, deposit balance and loan balance – a total of 150 members per branch. Each of these members received a letter from the branch manager. Rather than promoting products, the letters gave some background information on the manager and encouraged the members to reach out with any financial needs, concerns or questions.

The branch letters were followed up by phone calls, a proven strategy for optimizing the results of any campaign. By taking the initiative to make personal contact, the credit union took the burden off the members and opened the door for casual conversation or more in-depth financial discussions.

Results

In subsequent months, members who had already been contacted were excluded from the list. Thus, the program reached a new set of people each quarter.

This relational approach quickly generated responses, with a direct response rate of 8.66% and new balances of more than $11.3 million. New deposit accounts showed the most activity, with respondents mainly opening Certificates, a logical next step for many of those who already have substantial balances.

The credit union is well-known in the area and well-positioned with competitive rates, two factors that have served them well over the years. A deliberate emphasis on timely, personal communication proved to be another winning factor through these two successful campaigns. Reaching out to a relatively small group of members generated significant, high-dollar activity, and set the stage for personal interactions in the future. The credit union is sure to be top-of-mind for these members when financial needs arise – and the simple, repeatable strategy will reach additional members as time goes on.

Branch Mailings
Overview of Results:
Marketing Costs $6,900
# of Pieces Mailed 4,132

DIRECT
# of Responses 358
Direct Response Rate 8.66%
Direct Balances – Deposits $6,621,553
Direct Balances – Loans $4,706,425
Direct Profit (margin based) $169,760
Direct ROI 2360.13%

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Objective

Obtain new installment, auto and real estate loans.

Analysis

This $1B institution wanted to generate new loans on an ongoing basis, targeting highly-qualified customers with pre-screened offers.

Action

A daily credit trigger program was initiated, monitoring the institution’s customer base for new credit applications. When a qualified customer applied for a mortgage or installment loan elsewhere, Marquis automatically sent a letter the next day. For auto loan applications, the mailing was delayed by a month and at that point a refinance offer was sent.

Results

Over a 90-day tracking period, the institution gained 15 new auto and installment loans and 138 new mortgage/home equity loans, with total new loan balances over $6.5 million. The response rate was 10.89%, for an ROI of 1,660% and total margin of $192,918.

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Objective

Classically, the standard way of thinking about reboarding was to target single-service customers based on demographics such as tenure or geographic proximity. Once the target group was defined, either a single drop or a series of communications were sent to those individuals hoping to reactivate them. While this strategy does produce above-average results, there may be a new way of viewing this initiative to provide a more significant ROI.

We asked the question: does redefining the meaning of a minimally engaged customer as one who has two or more products, but no activity on those products, create a more profitable target for direct mail marketing to increase revenue and engagement?

Action

To determine if this were true, we undertook a between-subjects testing approach to answer the research question. The two metrics to determine campaign success were direct ROI and direct dollars generated. The population of the study was four financial institutions whose average assets were $367 million. The average mailing size was 18,000 pieces. The mail package construction was a legal-size letter delivered in a non-window #10 envelope. Both the letters and envelopes were printed in a four-color design. All content was prepared to the brand standards and product offers of each client. The study was conducted over a 3-year period.

Test cell “A” consisted of customers with a single service who, on average, have been with the financial institution for three years or less and live within the financial institution’s immediate branch footprint. On average, this group received 5-7 pieces of direct mail over a 5-7-month period. The flow of offers followed the same flight plan as traditional Onboarding, which is to say a Checking offer first, followed by Convenience Services, followed by 3-5 loan-specific offers (autos, personal loans, home equity and, in some cases, credit cards and mortgages).

Test cell “B” consisted of customers with two or more products who had no transactions or activity for more than 90 days. This group received 3-5 loan-only pieces of direct mail over a 3-5-month period. The flow of offers was still from the Onboarding flight, but only loan-specific offers. It is important to note that the solicitation of checking and convenience services were eliminated as these services were assumed to be the most difficult to acquire from an inactive relationship. Marquis Creative executed the direct-mail design and production on behalf of the participating financial institutions.

Results

Analysis data was executed by a Marquis OnTrax consultant using the Marquis CRM product.

	A	B
	Old minimally engaged definition	New minimally engaged definition
Average dollars earned per participant	$4,292,217	$3,022,527
Average ROI earned per account	169%	332%
Average pieces mailed	19,559	16,665

From the above results, there appears to be a relationship between the realigned target market and ROI. There are two possible explanations for the variance between the two test groups. One, the elimination of the checking and convenience letters in cell B provided a positive ROI lift over cell A results because solicitation of checking and convenience services to the inactive segment was eliminated. This could mean the overall impact of changing the minimally engaged definition is not as important as removing checking and convenience offers from the campaign. Two, the change of the minimally engaged definition had a positive impact on ROI. The results showed that the campaign B ROI was 90% higher even though the overall dollars earned were 28% less. This variance can be attributed to either a more productive target market or, again, the elimination of unproductive offers.

The limitation of this exercise was that the measurement taken at each financial institution was a between-subjects design. This test structure means participants were included in only one test and received either the A or B treatment. The limitation of this model is that results can be attributed to both chance and the actual treatment (changing the single service definition). Considerations for future research and exploration can include a within-subject design, wherein the participants will receive both the A and B treatments of the experiment. This redesign will more accurately isolate research variables.

In today’s “we must measure everything” environment, don’t just follow the same old accepted definitions of target markets. Experiment with various alterations to your campaigns by asking different questions long before you execute a campaign. In this case, the question posed was, “does a redefinition of minimally engaged result in better ROI?” While the question does not empirically prove or disprove the hypothesis, it does provide additional insight into future market efforts that over time will increase your knowledge and productivity.

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Objective

Demonstrate the value of credit union membership.

Analysis

The $7 billion credit union has consistently communicated with members about the various ways membership can help save money. They wanted to develop a compelling, personalized message that would clarify exactly how much savings each member’s accounts are generating, as well as an overview of savings for the entire membership.

Action

A Marquis analyst obtained rate and fee information for banks within the credit union’s metropolitan statistical areas (MSAs). This information was compared with the rates and fees at the credit union, and the difference was applied to each member’s accounts.

After annualizing the results for a one-year snapshot of savings, the Marquis analyst helped narrow the mailing list based on savings amount and product usage.

A trifold letter was sent to 19,069 members, with a personalized chart showing account-by-account savings amounts. Variable cross-sell messages promoted products that each particular member did not currently have at the credit union, and a website gave further details on the program. Recipients were encouraged to contact the credit union for help with maximizing their savings.

Results

Over a 6-month tracking period, the target group opened 8,305 new accounts. With total balances over $96 million, the program generated more than $788,000 in profit.

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Objective:

Determine if targeted marketing is a significant improvement over traditional mass marketing using a home equity campaign.

Action:

A Marketing Director at a financial institution traces the current campaign strategy back to a newspaper advertising effort that yielded some interesting results. “Our finance department tracked the new loans,” he recalls, “and we discovered that 85% of the applications were coming from our own customers. We realized there must be a more efficient way to reach them.”

With an aggressive growth goal and a new home equity product recently rolled out, he turned to Marquis’ data resources as a starting point for communications. “We have so much information available through the MCIF,” he said, “and P$ycle and propensity data helped us really narrow our focus.” In addition to identifying customers who were likely to use a home equity product, the additional data sources pinpointed specific expenditures each customer might make. Five categories were developed: home improvement, debt consolidation, lifestyle financing, education financing and refinancing higher-rate home equity debt at other FIs.

The benefits of the new home equity line of credit included an introductory rate of 1.99% and the option to lock in a fixed rate on a new cash advance or a current balance. While these are certainly enticing features, the Marketing Director envisioned a “customer nurture” strategy that would combine promotional and informational messages. The campaign ultimately involved direct mail, email, digital communications and social media, leveraging customer input, interaction and information to deliver relevant, personalized messaging.

The institution’s blog took a central role, with topics based on the five categories posted at different times of the year. The blog post for June, for example, concentrated on lifestyle financing for family vacations, while the Fall post talked about educational expenses. The posts were shared on social media and links were included in emails and postcards, sent to the customer groups most likely to respond to each message. Blog posts were also assembled into a home equity resource library for easy reference.

The email matrix was expanded for maximum impact, with click-through behaviors generating follow-up emails. The first click-through resulted in a promotional offer, and a second response resulted in a personalized email from a branch manager.

Facebook played a dual role, with informational posts supplemented by online polls. The polls would pose a question or ask for customer questions, and a video blog was then developed to provide the answers. The vlog posts were distributed by email and Facebook, adding another dimension to the information-based communications strategy.

Results:

By shifting from expensive mass marketing to a targeted, data-driven approach, the institution spent less while exceeding its goals.  “As of this year, we have driven $18.7 million in outstanding balances,” the Marketing Director reports. “For all of last year, we drove outstanding balances of $15.8 million. So, we’ve already surpassed our totals from last year and are on track to bring in about another $3.5 million, while spending approximately $27,000 less than last year. Needless to say, Finance is pretty happy with us.”

The Marketing Director has simple advice for other institutions, regardless of size: “If you have an MCIF, use it. The information you need is right there.”

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Objective

Reward loyalty and encourage new account openings.

Analysis

This closed-SEG $43 million credit union already had very successful marketing programs with Marquis for two years, including Onboarding, Reboarding, Auto Runoff and Most Valuable Member mailings. The CEO’s board of directors charged her with returning a majority of the increased bottom line to the members. Marquis and the client came up with a superhero-themed character who would deliver the message that money was coming and confirm delivery of the check in mid-November, just in time for Black Friday holiday shopping.

The credit union had a defined products and services usage matrix to determine loyalty, and therefore the amount of each member’s check, and they encouraged additional usage of services like debit card, mobile banking and bill pay during October so that members could qualify for an even higher amount.

Action

The week before Thanksgiving, the credit union cut checks to all members based on their relationship with the credit union. The average check was $46.26, with the largest check being $1,900, and the total amount paid was over $490,000. The CEO was budgeting between $300k and $500k for this project.

Other incentives were highlighted in the letter that accompanied each member’s check designed so that the credit union could benefit from getting a fair amount of the payout back in the form of member deposits and other loans.

Results

This program has brought new members to the credit union by word of mouth, and shows that when solid marketing programs work well, members not only save in terms of better rates on deposit and loan accounts, but they also realize true dollar savings and benefits of being a loyal member.

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