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Recipe for Success with Variable Data Printing and Credit Based Marketing
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Recipe for Success with Variable Data Printing and Credit Based Marketing

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With budgets getting smaller and competition getting more fierce, we need to be more creative and stand out. Get out of the middle of the line and move right to the front. …

With budgets getting smaller and competition getting more fierce, we need to be more creative and stand out. Get out of the middle of the line and move right to the front.

The way to do this is to combine Credit Based Marketing and Variable Data Personalized Printing.

With Credit Based Marketing get your loan leads from all three Credit Bureaus and only market to prospects who are currently looking for loans. And since it is credit based, you determine what qualifications the prospects require to meet the goals of your Financial Institution.

Variable Data Printing means having the ability to send a different personalized message to each member or prospect. According to test campaigns, personalized messages generate up to a 27% increase in responses than a standard generic campaign would generate.

Now, if you combine these two marketing strategies your Loan results will increase significantly.

Published in: Business, Economy & Finance

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  • 1. What is the Recipe for Success?
  • 2. The Way It Used to Be • “Broadcast” Marketing – Same message delivered to all recipients – Promotion/offer not relevant for all – High quantities and low response rates • The Result: – Low cost per piece – High cost per response
  • 3. The Way It Is Now • “One to One” Marketing – Specific message delivered to specific demographics – Promotion/offer relevant to each recipient – Lower quantities and higher response rates • The Results: – High cost per piece – Low cost per response
  • 4. Maximize Your Budget Dollars • Marketing Budgets are Being Cut. • Return on Investment is Being Closely Analyzed. • Results are Imperative. “The Cost per Response” is Much More Important then “The Price per Thousand”. And It Should Be!
  • 5. Target or One-to-One Marketing • Reduce Your Expenses. Improve Your Results. – Step 1: Take a look at what information is available. – Step 2: Collect this information and identify your target. – Step 3: Put the data to use and launch your campaign. – Step 4: Measure the results and improve on the concept for your next promotion.
  • 6. Step 1: What Information Do You Have? • Data from your core processing system and other internal databases. – Names/addresses/e-mail addresses – Account types (savings, checking, auto loans, home loans, etc.) – Balances – Ages – Branch preferences – Services
  • 7. Step 1: Other Information You Have • MCIF Systems or DataFlex – Provides ability to collect additional demographic criteria. – Identifies trends in activity, new accounts, new account holders, etc. – Advanced analytic capabilities. – Householding.
  • 8. Step 1: What Information Can You Get? • Data from External Sources – Data Enhancement and High Quality Mailing Lists – Ability to target specific demographics including location (zip codes, counties, carrier routes or distance radius), age, sex, income, home ownership, and MANY other criteria – Lists are constantly updated for improved accuracy – Purchase prospect lists or append data to your existing account holder lists
  • 9. Available Data Sources • Multiple List and Data Suppliers • A Few Basic Databases – Resident and Business Occupancy Lists • Reach everyone, not a lot of targeting capabilities. – Consumer Lists • The best are compiled by divisions of major credit bureaus • Many demographic criteria • Be wary of “self-reported data” from subscription and warranty cards
  • 10. Available Data Sources • A Few Basic Databases (continued) – Business Lists (DNB) • Ability to reach specific people within specific industries • Further target by business characteristics. – Other Lists • New Movers, New Homeowners, New Borrowers • Specialty Lists
  • 11. Lifestyles and Life Stages • Acxiom PersonicX is One Example – PersonicX Classic divides the U.S. consumer into 21 different lifestage groups made up of 70 different clusters. Below is a sampling of the information provided for each group and cluster: Group 1 – Beginnings Group 2 – Taking Hold Group 3 – Transition Blues Group 4 – Gen X Singles Group 5 – Gen X Parents Group 6 – Mixed Singles Group 7 – Cash and Careers Group 8 – Jumbo Families Group 9 – Boomer Singles Group 10 – Mixed Boomers Group 11 – Boomer Barons Group 12 – Flush Families Group 13 – True Blues Group 14 – Our Turn Group 15 – Mature Wealth Group 16 – Aging Upscale Group 17 – Modest Means Group 18 – Mature Rustics Group 19 – Golden Years Group 20 – Active Elders Group 21 – Leisure Buffs
  • 12. PersonicX Clusters • SAMPLE GROUP: 11B. Boomer Barons – Three of the wealthiest clusters are grouped into this lifestage group, where big money is made, traded or banked. Members of this group enjoy peak education levels, upper white-color jobs, working women and dual incomes. – Includes the following clusters: 1 Summit Estates, 4 Skyboxes and Suburbans, 7 Leveraged Lifestyles • SAMPLE CLUSTER: 4. Skyboxes and Suburbans – Skyboxes and Suburbans is one of the best-educated and wealthiest clusters. These wealthy families shop at upscale stores, spend time feathering their nest and adhere to regular fitness programs.
  • 13. Behavioral Models • Credit agencies and other data aggregators have developed high quality behavioral models to identify qualified prospects. • A few examples: – Economic Stability Indicator – Intend to Purchase Vehicle – Vehicle Dominant Lifestyle Indicator – Heavy Transactors Model – Consumer Prominence Indicator
  • 14. Additional Data Available • Interests – Interest elements are derived from actual purchases and self reported surveys. • Real Property – Real Property data consists of actual property ownership information (mortgage amounts, home sale prices, available equity, etc.) from county public records, census data and self-report surveys. • Buying Activity – Buying Activity includes consumer on-line, retail store and catalog activity consolidated by month and by type. • Ethnicity
  • 15. Using Actual Credit Bureau Data • React with the RIGHT offer at the RIGHT time • Gain the ability to reach account holders who may be defecting to your competition in near real time • Based on actual credit bureau data • Deliver a firm offer of credit to cross-sell additional products at the moment a need has been identified
  • 16. DataFlex Credit Prospecting Lists • Extend pre-approved offers of credit to account holders and non-account holders based on actual credit score information. – Set criteria to identify recipients that will qualify for a loan offer based on your specific pre-screen requirements. – Send direct mail or e-mail loan offers to qualified account holder and non-account holder prospects. – And you can utilize the LKCS DataFlex reporting engine to measure the results of these campaigns!
  • 17. Step 2: Identify Your Target • Assemble the data. • Examine the demographic and psychographic traits of account categories or specific account types. – For example, you’re likely to see a significant difference between the characteristics of people with CDs and Money Market Accounts than the people with personal loans.
  • 18. Step 2: Identify Your Target (continued) • Break your contact list into smaller segments with these specific characteristics. – Each group requires different promotional strategies and marketing mixes because each group has different wants and needs. • Match your product and offer to the appropriate segment(s).
  • 19. For Example: Generation X, Y and Z • Generation X: People born from 1965 to 1980 – (simplified to people born in 60s and 70s) • Generation Y: People born from 1977 to 1994 – (simplified to people born in 80s and 90s) – Do EVERYTHING online – Will rarely be seen in your building – Consider online chat, blogs, social networking, etc. • Generation Z: Unaware of life before 9/11 – Why do we call them checking accounts and not debit accounts? Do they know how to write a check?
  • 20. Step 3: Launch Your Campaign • Select the Format(s) • Write the Copy • Design the Marketing Pieces • Distribute • But, MAKE SURE IT ALL MATCHES YOUR TARGET MARKET
  • 21. VDP Marketing Methods • Direct Mail Letters or Postcards • Personalized Ads on Statements/E-Statements • Personalized Newsletters • Personalized Envelopes • E-Mail Marketing • OnBoarding Matrix Campaigns
  • 22. Targeted Direct Mail • Personalization (Gets Attention) – Can improve response rates by up to 27% – Use personalization to: • Make your offer more relevant by using specific data • Extend pre-approval offers for auto loans, credit cards, home equity, mortgages, etc • Simplify response methods by pre-filling applications or reply cards – Laser letters, postcards, self-mailers are all viable direct mail campaigns at ANY quantity, no matter how small
  • 23. Variable Data Printing (VDP) • Digital printing technology is changing the game. – “Press-Runs” are a thing of the past. – Every individual piece can now be heavily customized based on what you know about the recipient. – If it’s in the data, it can be used to make your mailings more relevant which will lead to improved results.
  • 24. Variable Data Printing • So, what can be variable? – Text • From one word to the entire piece – Images – Colors – Branding – Offers – EVERYTHING!
  • 25. VDP Examples
  • 26. Postcard Front Company Name Custom Graphic Font with Variable Name
  • 27. Postcard Back Name Signature Variable Phone Number
  • 28. Letter Name Loan Amount Rate Savings Table
  • 29. E-Mail Marketing Campaigns • Permission based – First step is to build opt-in e-mail list – There are MANY ways to do this – both online and offline – Start with your account holders and home banking users; you already have an established business relationship with them
  • 30. Why Use E-Mail? – Cost effective: inexpensive but NOT free – Complete tracking capabilities to measure results – Communicate with your online users – Allows direct interaction with your web site – “Immediate” delivery and real-time reporting – Collects important data for future correspondence – Send a message with minimal turn-around – Coordinate with other marketing efforts
  • 31. E-Mail Tracking • E-mail tracking shows: – Messages sent – Messages read – Multiple reads – Click throughs – Subscribes/unsubscribes – Complete user information with detailed reporting • Allows you to optimize your follow-up based on the details of the multiple read list
  • 32. One to One E-Mail Marketing • Build multiple lists: – General e-mail messages, rate alerts, new product announcements, press releases • Use custom fields to enable future targeting – Fields such as age, zip code, account number, or preferred branch location • E-mail can be personalized like direct mail
  • 33. SMS Text Messaging • Segment list by any demographic criteria, account relationships, etc. • Text messages can be personalized • Fewer than 20% of email messages are opened; within 15 minutes of sending a text blast, over 95% of your subscribers will have read the message • Every time your cell phone beeps or buzzes, how long does it take you to read the text message? • Opt-in process similar to e-mail marketing
  • 34. So Now You Can Get A Bigger Piece of the Loan Pie!! Let LKCS Assist You. • LKCS has all the Ingredients You Need. • LKCS has the Recipes to Help You Succeed. • LKCS has the Chefs and Experience to Create, Organize and Control the Recipe’s. • And LKCS can Deliver Your Pie’s to the Right Clients.
  • 35. Thank You! John Dudek VP of Sales LKCS Direct: 815-228-7075 E-Mail: john.dudek@lk-cs.com

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