Large US bank uses GeoProfiles to overcome declining response rates and rising customer complaints and increases persistency by 50%.

Overview
Despite an existing modelling and segmentation strategy, the traditional one-size-fits-all direct mail (DM) programme of a large US bank was suffering from declining response rates – and a significant level of customer complaints prompted by a lack of relevance in the offer.

With profits and customer loyalty at risk, the bank sought ReMark’s expertise to develop a more effective marketing strategy based upon relevant, targeted offers designed to increase response and ensure greater customer satisfaction.

The mindset shifted from ‘finding customers for my products’ to ‘finding the right products for my customers’

Strategy
ReMark used our proprietary GeoProfiles system to re-optimise their existing modelling and segmentation strategy. We created a new offer and benefit combination and targeted it to four distinct profiles created from customer data and augmented by our own proprietary data and research.
New creative approaches were developed for each profile, including the use of new auto accident statistics for one profile and powerful new Medicare stats for another. This mass customisation strategy eliminated customer experience concerns by delivering fresh, tailored messages and offers.

Result
By applying GeoProfiles to transform one-size-fits-all marketing to create relevant, accurately targeted communication, the bank was able to revitalise returns from a supposedly tired database:

  • Increased response rate by 25%
  • Increased persistency by 50%
  • Increased Average Annual Premium by 40%
  • Significantly expanded customer base penetration from 35% to 60%.

Insight
The mindset shifted from “finding customers for my products” to “finding the right products for my customers”.