This use case explains how Equifax can help enhance response rate for Prescreen direct mail campaigns.
Situation: Lending company seeks a solution to increase the response rate for direct mail campaign.
Equifax develops a new Prescreen response model that leverages alternative credit data insights. The model:
Is trained to identify look-alikes of borrowers that use specialty finance products such as installment loans and lease-to-own agreements
Is designed to give higher response rates, depending on score cutoffs
- Can and should be combined with other prescreen criteria for risk mitigation
By applying the new model to its direct mail campaign, a lender can expect to:
Achieve 2x-5x higher response rates, depending on score cutoffs
- Decrease cost per acquisition, allowing lender to lower risk acceptance thresholds without increasing campaign cost
Results may vary based on actual data and situation.