HELOC Activation & Promoting Line Usage
In the competitive world of financial services, maximizing customer engagement and return on marketing investment (ROMI) is paramount. A prime example of this is the strategy employed in HELOC (Home Equity Line of Credit) activation promotions.
Leveraging Customer Data and Strategic Mailing for Impressive Response Rates and Positive ROMI
In the competitive world of financial services, maximizing customer engagement and return on marketing investment (ROMI) is paramount. A prime example of this is the strategy employed in HELOC (Home Equity Line of Credit) activation promotions. These promotions not only demonstrate impressive response rates but also contribute significantly to a positive ROMI, a critical metric for any financial institution.
Targeting the customers for a HELOC activation promotion is relatively easy. A simple query of a bank’s customer database will yield existing HELOC customers and balance and credit line limits. Understanding the amount of money available and communicating that information to customers is the secret to driving line usage.
A letter mailed in a window envelope has proven to be a very effective mailing package for this offer. The available balance information is critical to the offer copy, so placing this information at the top right corner of the letter usually calls the reader’s immediate attention to an available amount. This amount can also be reinforced within the letter copy.
HELOC activation mailing promotions can realize 15% or more response rates where a mailed customer has increased their HELOC balance. With the impressive response rates of the promotion, there are parallel increased balances as well.
HELOC activation mailings generally post a significantly positive ROMI, considering the total new loan balances generated.