DDM - Financial Services

South Carolina Federal Credit Union Enhances Targeted Marketing

Segment your customers and prospects to optimize your marketing campaigns

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South Carolina Federal Credit Union Enhances Targeted Marketing Leverages Asset-Based Segmentation to Grow Balances case study South Carolina Federal Credit Union wanted to better serve a niche group of members within its target market and shift from a product- based to a needs-based approach for sales and marketing efforts. The credit union combined its internal analytics with Financial Cohorts ® , an asset-based segmentation system, to identify members likely to have between $100K and $500K in assets, as well as better understand their product needs. A test campaign resulted in an over 100% lift in key metrics, and the credit union is now on track to achieve double-digit positive loan growth. Challenge: Identify Key Member Segment and Enhance Target Marketing South Carolina Federal Credit Union wanted to better target a niche group of members that were not being adequately served by the credit union within its markets. The Business Performance Management (BPM) and Retail Sales and Marketing teams had previously relied on various segmentation schemas including age range, credit-worthiness, and income estimates, yet had not achieved desired results. In addition, the three teams wanted to better understand the needs of South Carolina Federal's members and transition from a product-based to a needs-based approach for its sales and marketing efforts. Solution: Identify Profitable Members and Deliver Marketing Messages Based on Likely Financial Needs South Carolina Federal's BPM team knew that it needed deeper insights on its members. The BPM team decided to leverage Financial Cohorts, an asset-based segmentation system which groups households by likely total assets and financial and behavioral characteristics, in order to better segment its members. By appending Financial Cohorts to South Carolina Federal's member database, the BPM team could better identify profitable Mass Affluent members that were likely to have between $100K and $500K in investable assets. The analysis also helped the team identify trends and successes, as well as uncover new opportunities for growth and likely product needs. CHALLENGE Overcome the limits of traditional segmentation measures to better identify and market to a niche group of members that were not being adequately served. SOLUTION Combine internal analytics with asset- based segmentation system to deliver the right message to the right member at the right time. RESULTS Targeted members delivered over 100% lift in deposit, investment, and loan balances during marketing campaign test, and credit union expects to shift from negative to double-digit positive loan growth.

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