Marketing Goal
To increase loan outstandings and establish new relationships with local businesses.
Target Market
The first audience should always start with existing commercial customers who have an account but not a business loan. Especially those who already have their business checking with the bank should be open to a loan conversation.
The second target market would be businesses within the trade area. They can be selected by any combination of criteria: proximity to branches, sales volume, employee size, credit ratings, and type of business. Market areas can be assigned to specific calling officers by zip code (or other geography) and their name/phone/fax/email info can be used in the mailings.
Program
This challenging prospect will have changing needs over time. They may have a business opportunity come up, their existing banking relationship may be less than positive, or they may be in a growth mode. Therefore, the bank needs to develop an ongoing program that is a combination of mailing and telemarketing that will directly support the efforts of the bank’s commercial calling officers.
- The Message: Existing customers should have their relationship acknowledged and new prospects should be told of the convenience and local roots for the bank. But all communications need to be quick and to the point, since business people typically scan their incoming mail for something that may be of interest/value to them. They should be told the bank has money to lend and people to help them grow their businesses.
- Timing: This should be viewed (like retail checking) as a year-long, ongoing marketing program. The same business prospects should be mailed to multiple times over the course of the year in a sequential mailing program that builds over time.
- Mailing Package: WordCom has successfully used attention-getting inserts inside a personalized mailing package to help get past the “gate keeper” in the business, the person who screens the mail and phone calls. One proven technique is using an authentic foreign banknote series inside the mailing package that is intriguing and allows for a copy connection talking about “real American money to help your business grow.”
Results
Although this challenging market will yield low numbers of new accounts, commercial loans are one of the most profitable accounts due to the significant account balances. Response rates for new account openings among prospects could range from .1% to .8%, and could be double that for existing customers.
Case Study: Business Cross-Sell - Loans 1 »
Case Study: Business Cross-Sell - Loans 2 »
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