CHECKING ACQUISITION USING CHECKINGIQ

After unsuccessful checking acquisition attempts, one financial institution found Checking IQ^TM strategies turned around their marketing results.

A mid-size financial institution found its efforts to improve checking account openings yielded disappointing direct marketing open rates and a negative Return On Marketing Investment (ROMI).

SUCCESS WITH CHECKINGIQ^TM

When they came to WordCom and explained the past results, we recommended two distinct changes:

1. CheckingIQ^TM Segmentation Analysis – Analyzed data and mapped the correct geographic footprint of their branches to locate the best potential prospects.

Among the information from the analysis, CheckingIQ^TM found the:
• Best carrier routes and their proximity to the branches
• Historic checking penetration of these carrier routes
• Checking account open rate in the carrier routes based on recent openings

2. Repetitive Mailing Cycles — Once the best prospect areas were identified, the next step was to create a direct marketing campaign with a regular mail cycle. The repetitive aspect catches prospects at the varying times when changes set them on the path to seek a new account.

The campaign included:
• Approximately 43,000 mail pieces delivered every 8 weeks
• A 6” x 9” four-color postcard
• An offer of Checking Rewards Points

IMPROVED RESPONSE AND ROMI

CheckingIQ^TM Segmentation Analysis delivered the institution’s desired results.
• Direct open rate – .45%
• Checking deposits – $2.1 million
• Acquisition cost per account – $85
• ROMI first year – 267%
• Lift over control – 365%
• Overall new deposits – $5.7 million

As successful as the campaign was, it’s important to note the overall effect. These new checking account openings resulted in $5.7 million of overall new deposits. Accounts other than checking were opened by prospects. Also, to show the value of analysis, note the healthy 365% lift of the prospect mailing over the control group.