10% improved total profits on card sales from better promotions
Need:Increase activation and usage of new card sales.
Card sales that don't result in card activation and usage are a net loss for the bank. Direct marketing efforts of cards is an expensive process and activation rates are key to profitability.
Approach: |
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Over the past three years the bank had tried several approaches to marketing, consisting of a variety of promotions, 3rd party store deals, and contact strategies. Due to economic changes and activations happening over time, it was not clear which approach had been the most effective. Digging into their data and utilizing a more comprehensive statistical analysis the situation was clarified to great advantage.
Success:
Card activations were increased by 10% at a reduced cost. Inactive cards are valueless, so the increased 10% activation was equivalent to 10% more total card sales. The decreased cost was just icing on the cake.