Marketing Goal
Improve loan volume by identifying existing equity line customers with potential and offering them additional funds.
Target Market
There is a block of good equity line customers who have drawn down a portion of their existing line, but have a solid repayment history and more equity available. WordCom would analyze the block of existing equity line customers who have a significant usage to identify those with most potential for an increase offer. The file should be scored to confirm credit worthiness for the increase amount.
Program
- Timing: Like the activation reminder notices, these offers 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: Congratulations on their wise use of their equity line to help manage their finances. Because of their good credit history, they are qualified for an additional amount.
- 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
The program has the dual effect of increasing lines as well as increasing outstanding balances. The program averages around 1% to 1.5% for line increases and 11% to 16% for accounts with increased balances.