Case Study: Small Loans
Increasing Customer Activity by 500%
The Goal & The Obstacle
A national small loan business wanted to see an increase in their response rates as well as maximize their return on investment. For 10 years, they had used modeled data hoping to increase their marketing efforts, but the results never reached expectations. The small loan business knew they could help more people if only they could find their ideal customers. When they heard AMP's MicroModeling® finds prospects most likely to respond, they decided to try it.
The Plan
AMP used MicroModeling® to profile the loan business’s customers and identify their ideal prospects by each location. The MicroModels enabled the small loan business to optimize their mailing list. They were able to remove the records least likely to respond and add new records that matched their ideal customer profiles.
The Results
With the MicroModeling® data, the small loan business saw a 33% lift rate over previous modeling efforts. They also saw a 100% loan volume increase over the previous year. As an added bonus, mail files were processed for BMC drop shipments resulting in a $70,000 postage savings.
The focus changed the following year to acquiring larger accounts, so AMP refined the model. As a result, new account activations increased and active customer accounts grew by 500%. This growth resulted in the small loan business opening 85 new locations.
- 33% Lift Rate
- Loan Volume Increased 100%
- $70,000 in Postage Savings
- Opened 85 New Locations
- Active Customer Accounts Grew by 500%
