DDM - Financial Services

Growing Bank Deposits with Targeted Prospecting Case Study

Segment your customers and prospects to optimize your marketing campaigns

Issue link: https://resources.datadrivenmarketing.equifax.com/i/920228

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Copyright © 2017, Equifax Inc., Atlanta, Georgia. All rights reserved. Equifax, EFX, and Financial Cohorts are registered trademarks of Equifax Inc. Direct-Measured and IXI are trademarks of Equifax Inc. 17-135725 Marketing Efficiency Improvement and Deposit Opportunity Identification Average Household Deposit Wallet Estimate $163,570 32 % 19 % 12 % $206,286 $181,517 Marketing Efciency Improvement DEPOSIT OPPORTUNITY PER HOUSEHOLD MARKETING EFFICIENCY IMPROVEMENT FINANCIAL COHORTS CLUSTER 140% 120% 100% 80% 60% 40% 20% 0% $250,000 $200,000 $150,000 $100,000 $50,000 $0 E17: Youthful Promise: Planners E18: Youthful Promise: Credit Dependent N49: Mature Mainstream: Older Conservative N48: Mature Mainstream: Deposits and Credit H30: Respected Seniors: Very Elderly N51: Mature Mainstream: Older Investors F21: Rising Stars: Credit- Active Investors G25: Safe and Secure: Credit-Active Investors Q58: Small Town Leaders: Older Conservative E20: Youthful Promise: Thriving Investors Steps for a Targeted Prospecting Campaign Financial Cohorts enabled a leading bank to develop a strategy to identify prospects that would be likely to have an affinity to begin a relationship with the bank as well as have significant deposit assets. The process was as follows: ■ Categorize the firm's existing customer base by placing each household into one of Financial Cohorts' 61 clusters. ■ Identify and analyze those clusters that have a strong propensity to bank with the firm. This is achieved by comparing the clusters' presence within the bank's customer base to the clusters' presence in the bank's overall footprint. Those clusters that show a higher presence at the bank versus the footprint have a higher affinity for conducting business with the bank. ■ Identify prospect households that are in the high affinity clusters. ■ Prioritize the prospects based on their potential deposit opportunity as measured by total wallet estimates. Results: Improved Marketing Campaign Efficiency of 21% and Over $5.6 Billion in Potential New Assets The depth of the Financial Cohorts segmentation system enabled the bank to pinpoint prospects that mimic its existing best customers, as well as prioritize them to enhance marketing efficiency. The chart below shows the impact of the above process. While 10 clusters were found to have a higher than average propensity to bank with the firm, three clusters had significantly higher deposit assets than the others. These three clusters were identified as the target group for the prospecting campaign. By targeting these three high affinity, high potential clusters, the marketing efficiency of the campaign is projected to increase by 21% and has the potential to yield over $150,000 in deposits per household and over $5.6 billion in new assets. CONTACT US info.ddm@equifax.com 800-210-4323 equifax.com/DDM 2009 Case Study. Results may vary based on actual data and situation.

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