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Finding the Right Prospects Online

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Finding the Right Prospects Online

  1. 1. Finding the right prospects online A Sallie Mae case study
  2. 2. Rick Erwin President, Targeting, Experian Marketing Services Joyce D’Addio Digital Marketing Director Sallie Mae, Upromise Jennifer Astle Sr. Director, Channel Mktg Sallie Mae, Upromise Your presenters Bob Baer Director of Online Acquisition Sallie Mae, Upromise
  3. 3. Agenda • What’s old is new • Who is Upromise? • Upromise’s business challenges • Why Experian? • Modeling and optimization • Display campaigns • Campaign KPIs • Results
  4. 4. Then Now List Audience Service Bureau DMP/Onboarding Partner Printing & Letter shop DSP Direct mail Digital Media Impressions What’s old is new
  5. 5. Marketers: People: Delivering • the right offers • at the right time • to the right person Searching • what they want • when they want it • where ever it may be Direct Marketing Digital Marketing
  6. 6. Who is Upromise by Sallie Mae?
  7. 7. Upromise by Sallie Mae • Upromise is a simple, yet powerful cash back rewards program where members can turn everyday spending into money for college. • 15MM+ members; $700MM+ in member savings to date • Mission: “To help people save, plan and pay for college” • Member composition: • Parents of high school students • Parents of young children • Students • Free to join
  8. 8. How members can save • Earn 5% cash back on online purchases with 900+ retailers & travel agencies • Earn cash back when dining, getting groceries, or filling up your tank at specified retailers • Earn 1% on every purchase using a Upromise credit card What members can do with their earnings • Keep in Upromise account • Transfer Upromise savings into a 529 plan • Use Upromise savings to pay down a Sallie Mae student loan • Transfer Upromise savings into Sallie Mae high-yield savings account Upromise Products
  9. 9. Upromise Business Model How does Upromise make money? • When a member transacts with a Upromise partner, the partner funds the member’s savings and Upromise revenue Who is Upromise’s ideal customer? • Joins and stays engaged with the rewards program • Adopts 1 or more financial products
  10. 10. Business Challenges
  11. 11. GoalCurrent status Find the right customers @ the right time who will transact consistently and engage with 1 or more Financial Products Many people signing up for free service, but not transacting regularly Revenue increased by 150% Year over year Key Challenge
  12. 12. From casting a wide net… To honing in on the ideal target Low Engaged Members Grocery Affiliates Prospect Email Key Question • How do we find our ideal target and increase the odds that the prospect will become an engaged member? • “Ideal” Upromise member - Transacts frequently with our partners - Eligible for financial products - Skews toward higher credit quality with above average levels of disposable income
  13. 13. Database Marketing Concepts • Apply database marketing concepts and strategies to online display • Powerful targeting capabilities available by combining traditional marketing strategies and new technology • Advertise to your ideal prospect where they are, not where you think they might be Traditional Offline Marketing Goes Digital
  14. 14. New, active Customers Join Upromise Deliver Display Ads Cookie Targeting Model Best customer Summary Key question: How does Upromise find customers who will engage in the Upromise service?
  15. 15. Why Experian? • Confidence in data quality and analytical capabilities • Breadth of data sources • Reach of ad network • Similar privacy and compliance standard
  16. 16. Modeling
  17. 17. Define High Value Customer within Sallie Mae CRM1 Apply to ConsumerView and identify 200-300 variables that best define audience2 Create model with these variables. Rank entire US population3 Target top deciles online 4 Display Modeling Process with Experian
  18. 18. Best customer Find more of them Identify and profile your best customer Getting Started • Use key criteria for defining “best customer” • Create model using Upromise’s existing customer base • Build lookalike models to find other people who look like Upromise’s best customers
  19. 19. Model Objectives Target individuals with the following attributes: • Prospects with a high potential to be active Online Mall purchasers • Prospects with a high potential to develop into Financial Product consumers • Customers who have been enrolled since 2010 and have had online mall purchase since 2011 Max (score 1, score 2) Sallie Mae loan holder look-alike model score Credit Card look-alike model score Online look-alike model
  20. 20. Online Mall Purchasers – Model 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% PercentofOLMCustomers Percent of Prospects Model Lift: Online Mall customers vs ConsumerView Baseline Online Mall Customer model 38% 34% 72% of likely best customers are found in top 30% of ranked data
  21. 21. Display Advertising
  22. 22. Define best customer, create models, define audiences 1 Campaign Execution and optimization 4Set Segment Objectives: What does success look like? 2 Campaign design: creative, test plans, media plans 3 Display Campaign Process
  23. 23. Define best customer, create models, define audiences 1 Defining Your Universe 1. Define your best customers – Revenue – Secondary product adoption – Method and timing of acquisition 2. Create the Model – What attributes separate your best customers from the rest? – What behaviors should the model predict? 3. Define your Audiences – Life stage – Product adoption – Self-selected (how they use your product or service)
  24. 24. Set Segment Objectives: What does success look like? 2 Segmentation and Defining Objectives 1. Segment definitions should be aligned with goals & products 2. Segment definitions need to consider size – the larger the segment, the better yield optimization opportunities 3. Multiple segment campaigns generally outperform single segment campaigns 4. CPA & CPC objectives are preferred over CTR and eCPM
  25. 25. Campaign design: creative, test plans, media plans 3 Campaign Design 1. Creative – Align creative with segments – Reinforce messaging and creative in organic channels 2. Select Ad Networks – Consider reach and traffic volume – NAI/DAA standards 3. Impression Frequency and Lookback Windows – Test # of repetitions required for conversion – Determine appropriate look back window for counting clicks and view-thrus
  26. 26. Home Value Online ShopperActive Credit Cards Presence of Children Geo-locationAge & Income Data Selects Data Models Execution and Optimization Now that we know who else in ConsumerView would be a good Upromise member, we use Experian’s display capabilities to find them Campaign Execution and optimization 4
  27. 27. Results
  28. 28. New, active Customers Join Upromise Deliver Display Ads Cookie Targeting Model Best customer Summary Key question: How does Upromise find customers who will engage in the Upromise service?
  29. 29. MES = Median Credit Score For acquired members not exposed to Experian campaign: Lower credit scores For acquired members exposed to Experian campaign: Higher credit scores Results
  30. 30. $0 $100 $200 $300 $400 $500 $600 01 02 03 2012 2013 Results 2013: Shifted to quality over quantity Spend per Shopper is up 55% vs. 2012!
  31. 31. Next Steps 1. Engage our customers through the channel(s) they prefer and/or transact on 2. Implement a mobile strategy 3. Drive for cross-channel optimization
  32. 32. ? Thank you…

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