Direct Marketing Customer Stories Case Studies Direct Marketing Customer Stories

Case Studies in Direct Marketing Financial Case Studies in Direct Marketing

Financial Consolidation, technology advances, and global commerce have intensified competition in the financial services industry… To be successful, financial institutions must be responsive to customer needs and adapt to market challenges Communicating in multiple channels: Accommodating customer needs for greater convenience, and seamless service through multiple channels, (e.g., online portals, call centers) – increases customer loyalty Consistent branding and messaging across channels is paramount, including local branches, independent agencies, online and call centers. Conveying a human face to the consumer Consumers are often confused by the jargon that accompanies the purchase of financial products. Use personalized communications to educate and demistify Include a photo, name and contact information of a local banker or agent – reassure customers that there is someone to talk to if they have trouble accessing information online Include personal endorsements, pictures and quotes from local customers to demistify confusion about products, the move to paperles statements, and other such initiatives

Wallingford Municipal Federal Credit Union Wallingford Municipal Federal Credit Union (WMFCU) serves employees and immediate families of the town of Wallingford, Connecticut Situation and program objectives: After traditional campaigns were generating low response rates and poor sales – WMFCU was looking for a way to increase number of loans and encourage customers to join online banking Target audience and list: 1,500 recipients - current credit union from WMFCU’s customer database Segmentation and key messages Focused on a single service (i.e., car loan/home equity loan/online banking) - with a clear benefit and simple call to action Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Wallingford Municipal Federal Credit Union 3 different mailings of personalized postcards promoting car loans, home equity loans and online banking Personalized Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Wallingford Municipal Federal Credit Union Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Wallingford Municipal Federal Credit Union Results: Unprecedented loan volumes: Achieved best ever month of loan activity in the history of the credit union Loan volumes had nearly doubled within a few months of the first drop, exceeding the forecast for the entire year Over 17% of members signed up for online banking within 6 weeks of mail drop A postcard promoting one service actually created interest in other types of loan products Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Tamarack Situation and program objectives: Target audience and list: Tamarack Funds is part of Voyageur, an investment adviser offering investment specialties to institutions and individuals Situation and program objectives: Tamarack Funds wanted to increase contributions and dollar amounts deposited into current IRA accounts, by it’s existing clients Target audience and list: Over 4,000 existing Tamarack customers, 55 and older segment Segmentation and key messages This was the first time Tamarack Funds used a campaign or letter to the investor, to encourage increased IRA contributions; in the past they had only used buckslips The key message of the campaign was that even small amounts invested consistently over time can yield big results Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Tamarack A fully customized mailer (6" x 9" format): Personalized cover Customized using demographic data from customer’s account Hypothetical results chart for various investment levels Other pages include suggestions of several investment options selected to match recipient’s needs based on their account data and demographics Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Tamarack Results: 6% of client base increased their contributions 22% average increase in investor contributions Six-figure net profit Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Alerus Financial Situation and program objectives: Alerus Financial is a banking institution, with 13 locations across the upper Midwest of the US. The company serves more than 89,000 customers worldwide Situation and program objectives: Alerus was looking to encourage new loan applications Target audience and list: 7,500 prospects of Alerus Financial. Segmentation and key messages Prospects were segmented via age demographics into three groups: 25–35, 36–45, and 46–55. The message of the campaign encouraged customers to apply for a new loan Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Alerus Financial Alerus used a targeted campaign for half of their list, and used the other half as a control group: The test group received the following components: A self-mailer with a pURL; different personalized images and messages were used to appeal differently to each of the subsegments. Respondents could also use a toll-free number to respond. An additional postcard with pURL was mailed to recipients that did not respond in the first round The pURL contained information on the credit card loan consolidation offer, a pre- populated contact form, and an interactive calculator on to estimate the monthly loan payment. The control group received a non-personalized self-mailer that employed the same creative that was used for the middle age group of the variable data segment, and the same offer, with a single toll-free number as the response device. Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Alerus Financial Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

Alerus Financial Results: 3.67% response rate to variable mailer (visited pURL or called toll free number), versus less than 1% for the traditional mailer Highest response rate was from the 25-36 age group 60% of new loans during the campaign came from the targeted mailer, 30% came from the traditional mailer, and 10% came from word of mouth advertising 60% of those who responded to the variable data mailer were new customers to Alerus Source: PODi. For more info visit www.podi.org. Not all PODi case studies were printed using HP Indigo technology

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