How mid-size bank saw a 267% ROI with CheckingIQ

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

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

1. CheckingIQ 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, CheckingIQTM found the following:

• Best carrier routes and their proximity to the branches
• Historic checking penetration of these carrier routes
• Checking account open rates in the carrier routes based on recent openings

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

The campaign included:

• Approximately 43,000 mail pieces are delivered every eight weeks
• A 6' x 9' four-color postcard
• An offer of Checking Rewards Points

Improved Response and ROMI

CheckingIQ Segmentation Analysis delivered the institution's desired results.

• Direct open rate .45%
• Checking deposits $2.1 million
• The acquisition cost per account is $85
• ROMI first year 267%
• Liftover 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 deposits. Prospects opened accounts other than checking. Also, note the healthy 365% lift of the prospect mailing over the control group to show the value of analysis.