More credit unions today are investing in member and
product/service data analysis to increase their household profitability. By
identifying who profitable members are, as well as which members have the
highest product/service usage potential, you can increase your product/service
penetration by selectively marketing to members that are most likely to use
your products and services.
However, data alone is not the solution. How effectively you use this resource
to target your members determines whether or not you will enjoy a significant
return on your data investment. Targeting your members according to their age
and lifestyle is the effective and efficient solution.
So how do you design your direct mail offer to be more relevant and targeted?
Consider splitting your mailing into two or more offers. Combine younger and
family segments and your more mature and older members into two different
mailings. If you have risk-based lending, you can further target members and
offer different rates. You could also offer different value-added incentives.
By splitting your mailing, you can adjust the headlines and copy, focusing on
the needs of your first time borrowers, recent college graduates, and working
young adults in the one mailing, and the needs of families and mature members
in the other. Another option is to target more member segments. For example,
depending on the number of qualified members in each segment, you could
separately target younger members, families, and mature members.
Is it worth the additional expense to split your mailings? For many credit
unions it is. Studies show that when you target your advertising, your response
rate increases, especially when you have a strong offer that appeals to your
targets’ needs.
Zero-in On Household Profitability
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