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.
Challenge
An Alternative/Specialty Finance company wants to increase the response rate for its Prescreen direct mail campaign offering access to cash via the Internet.
Solution
Equifax develops a new Prescreen response model that leverages alternative credit data insights. The model:
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Is trained to identify look-alikes of borrowers that use specialty finance products such as installment loans and lease-to-own agreements
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Is designed to give higher response rates, depending on score cutoffs
- Can and should be combined with other prescreen criteria for risk mitigation
Outcome
By applying the new model to its direct mail campaign, a lender can expect to:
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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.
