The material of the campaign focused on a holiday shopping loan message and offered a low promotional rate as low as 5%. The offer was mailed to 978 households on November 5, 2002 and was good through Christmas Eve 2002. The total promotional costs were $2,723.

Mailing List Criteria:

• Household Age Between 18 and 60
• Households with At Least One Checking Account
• Beacon Score Higher than 690
• Target Credit Driven, Middle Market, and Upscale Consumer Segments

Results of the Holiday Loan Promotion:

• 84 Households Responded to the Offer
• 8.59% Response Rate
• $396,706 in New Balances
• 52.36% Return On Investment
• There was an Average Balance of $4,359.41
• There was an Average Account Profit of $17

Conclusions:

• Total unsecured loan volume grew during the promotion compared to before an after the promotion.
• Overall, Middle Market households are most likely to have unsecured loans.
• Overall, Credit Driven households have the highest average unsecured loan balances.
• Overall, Credit Driven households have the highest average profit.
• Best time to promote unsecured loans: During Holiday Season
• Best target: Credit Driven & Middle Market
• Most profitable accounts overall: Fee Driven & Credit Driven
• The low promotional rate generated significant response, but compressed margins on the new loans. This resulted in less profitable new business in general. The client did not cover their mailing costs with the new profit generated.

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.

For more than 20 years, 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.