OBJECTIVE: Increase response rate through automated target marketing

Every month Premier Members Federal Credit Union sends one of eleven different letters to members who fall into one of six different segments which are all managed by RFG's iMATRIX system.  The segments include;

1.       Transition households – when members move or reach a milestone birthday

2.       New Households

3.       Maturing auto loan households – households with loans that are within 18, 24 and 30 months of maturity

4.       Loan households – those who already have loans with the credit union who are most likely to need additional loans

5.       Low profit households - mostly single service low balance households

6.       Top households – members who have more than $50,000 in total service balances and have profitability scores of over $100

Within these segments Premier Members Federal Credit Union offers incentives for their most popular products – checking, money market, credit cards, HELOCS, auto loans, etc.  Each offer within the segments is further segmented based on demographics and products used.  “It sounds rather complicated because, quite honestly, it is.  Luckily RFG’s iMATRIX system keeps track of who gets what letter and when, along with whether or not the recipient responded” adds Kerry Goodliffe Parry, VP of Marketing, Premier Members Federal Credit Union

Results
The offer that received the best response was from the letters with no offers at all.  New members receive what Premier Members calls a “welcome” letter within about a month of joining the credit union.  The letter welcomes the new member to the credit union and thanks them for the business.  12% of recipients open some type of new account within 60 days of receiving this.  They also send a letter called “luv ya” to top households.  Again, they don’t sell them any specific product.  The letter only says “Thanks for the business.”  Premier Members usually includes some little token like a pen or a pocket calendar.  14% or recipients open a new service within 60 days of receiving this offer. 

“What we have learned is that if you can do nothing else, be sure and thank members for their business.  A little thing like a thank you can go a long way to future business” concludes Kerry.

At RFG we take pride in providing research-based solutions that are effective and easily implemented. We are dedicated to exceeding our client’s expectations and ensuring that they receive value from their relationship with RFG.

Since 1983, Raddon Financial Group (RFG) has provided primary research and marketing solutions to the financial services industry. Headquartered in Lombard, IL, RFG provides research solutions to over 1,000 financial institutions nationwide.