Marketing Goal
Increase loan volume by promoting product usage among existing equity line customers who have substantial loan commitments funded but not drawn down.
Target Market
Once the initial sale of establishing equity lines of credit have been made, many times significant numbers of accounts sit idle. WordCom would analyze the block of existing equity line customers who have a significant outstanding balance to be drawn down to identify those with the most potential.
Program
The customer who already has the line in place needs to be reminded of their wise decision to establish it and that they have the funds available.
- Timing: These reminder notices can go out up to four times per year: around the holidays (before or after), in the spring, early summer, and in the fall.
- Message: The customer has the line already in place with $XX,XXX (variable data) available to use to help manage their finances.
- Package: The package can vary from a personalized letter to a letter/check format. The checks would have the customer’s account number lasered as a variable in MICR encoded toner, which can be read by the check machines at the bank.
Results
Most banks will see an immediate increase in equity line outstandings in the weeks following each mailing, with 20% to 30% of accounts showing balance increases totaling millions of dollars.
Case Study: Equity Activation »
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