South Carolina Federal Credit Union leverages asset-based segmentation to enhance target marketing

Leverages asset-based segmentation to grow business

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GOAL FOR SOUTH CAROLINA FEDERAL CREDIT UNION:
Enhance target marketing to members to grow asset and loan balances

CHALLENGE:

Identify and market to a niche group of members that were not being adequately served 

The team wanted to better meet the needs of its members and transition from a product-based to
a needs-based approach for its sales and marketing efforts.

They had previously relied on various segmentation schemas including age range, credit-worthiness, and income estimates, yet had not achieved desired results.

SOLUTION: 

Combine internal analytics with asset-based segmentation to deliver the right message to the right member at the right time

The Business Performance Management team leveraged Financial Cohorts® asset-based segmentation system to:

  • BETTER IDENTIFY profitable members that were likely
    to have between $100K and $500K in investable assets

  • DETERMINE likely product needs which could be used
    to develop tailored marketing campaigns

  • CONDUCT trend analysis and uncover new opportunities for growth

RESULTS: Targeted members deliver over 100% lift in deposit, investment, and loan balances

RESULTS:  
Group 1 achieved over 100% LIFT for key metrics

 IMPLEMENTATION:
The marketing team conducted a test campaign to two groups:

Group 1:
Members likely to have estimated household assets of $100K-$500K as determined by Financial Cohorts.  This group received marketing messages based on likely product needs as described by the firm’s selected Financial Cohorts clusters.

Group 2:
Control group of members with the same asset balances but received no concentrated efforts

Results may vary based on actual data and situation.
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