CheckingIQ Case Study
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The document highlights a case study using the checkingiq tool to enhance checking account acquisitions for a mid-size bank. By implementing targeted direct mail campaigns and analyzing geographic data, the bank achieved significant results, including $2.1 million in deposits and a 267% return on marketing investment. The strategy led to improved membership response rates and a stark increase in new deposits while maintaining a low customer acquisition cost.
CheckingIQ Case Study
- 1. CheckingIQ Targeting for Checking Acquisition CASE STUDY BANKING Tool: CheckingIQ™ - Checking Segmentation Analysis Use: Use CheckingIQ to find the best checking prospects for a direct marketing program Approach: Leverage multiple monthly products and service offers through a direct mail program Results: 1. Direct Open Rate – .45% 2. Checking Deposits – $2.1 million 3. Acquisition cost per account – $85 4. ROMI First Year – 267% 5. Lift over Control – 365% 6. New deposits – $5.7 million “An investment in knowledge pays the best interest.” Challenge A mid-size bank wanted to increase their checking account acquisition while improving their ROI. Their past attempts yielded disappointing direct open rate results and a negative ROMI. Approach WordCom’s approach used sophisticated targeting and repetitive mailing cycles: 1. Analyze the geographic branch footprint utilizing CheckingIQ Segmentation Analysis. This tool identifies potential prospects by examining the following: 2. Once the prospects were identified, a regular quarterly mailing program was developed. Results: Successful Acquisition The CheckingIQ segmentation strategy delivered dramatically improved results with a significantly positive ROMI and low cost per account acquired. • The carrier routes and their proximity to the branches • Historical checking penetration of the carrier routes in branch footprint • The checking account open rate by carrier route for recent openings • Approximately 43,000 pieces mailed every 8 weeks • 6” x 9” postcard, 4 color • Offer: Checking Reward Points
- 2. ???% ROI Results: • .45% average direct checking account response rate after 4 cycles • $2.1 million in checking deposits • $85 average cost per checking account • 267% first year ROMI on direct checking openings • $5.7 million in new deposits • 365% Lift over Control CD 3% Checking 70% Money Market 2% Retirement 1% Savings 24% New Deposit Accounts - Type CD $479,277 Checking $1,257,982 Money Market $178,685 Retirement $49,916 Savings $205,751 New Deposit Accounts - Balance 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% A01 A02 A03 A04 A05 A06 A07 A08 0.60% 0.51% 0.35% 0.40% 0.43% 0.30% 0.32% 0.16% Matched to mail file - open rate by segment