DDM - Financial Services

Growing Bank Deposits with Targeted Prospecting Case Study

Segment your customers and prospects to optimize your marketing campaigns

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Growing Bank Deposits with Targeted Prospecting Bank Discovers $5.6 Billion in Potential New Assets case study Challenge: Costly Direct Mail Campaigns Fail to Bring in Significant New Assets Many bank marketing efforts rely on segmentation systems that are built solely on demographic, lifestage or survey-based data or that use only a few variables to segment millions of customers. This results in firms wasting their scarce marketing and prospecting budgets. Common segmentation ailments include: ■ Ignoring key financial behaviors ■ Targeting prospects that have limited investment potential ■ Communications materials that do not have the right message or offer for the target audience ■ Media plans that are ill-suited for the prospects the bank is trying to engage In order to achieve the specific goal of growing deposits, firms need to assess prospects' portfolio allocation and deposits capacity. Effective targeting for deposit acquisition requires much more granularity to pinpoint the highly differentiated needs present across a firm's millions of prospective customers. Those banks that understand individual financial behaviors and preferences will have the advantage in moving deposits to their firms. Solution: Use Financial Cohorts to Identify High Potential Deposit Prospects and Communicate Effectively Leading banks can leverage valuable financial measures such as average total investable assets, deposits assets, total income, portfolio allocation, and risk tolerance to improve their segmentation efforts. Financial Cohorts ® asset-based household segmentation system defines and segments households into 61 clusters based on our proprietary database of approximately $10 trillion of direct-measured TM anonymous asset data. Its clusters are defined by consumer financial tendencies, and proprietary measures of income, spending, and credit to provide a holistic view of households' financial pictures. Demographic and attitudinal information is incorporated to describe the cluster, thus enabling banks to develop highly targeted messages that will resonate with an individual household. IXI TM Network Member Financial Services Firm CHALLENGE Due to insufficient deposit gathering efforts, banks are leaving billions of deposit dollars on the table for their competitors to bring under management. Banks need more insight on the financial capacity of prospects they are targeting. SOLUTION Banks can use Financial Cohorts segmentation system to identify prospects that are likely to have an affinity to begin a relationship with the bank as well as have significant deposit assets. RESULTS By using Financial Cohorts, a leading bank was able to unlock an expected 21% improvement in campaign conversion rates and identify over $5.6 billion in potential new assets.

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