MARKETING PROGRAM ANALYTICS
Evaluating a Home Equity Direct Mail Offer to the
Credit Card Customer Base
Championed a strategy to offer home equity loans to
existing credit card customers of a national credit card issuer.
Testing was conducted to understand the impact on consumer behavior, total
customer profitability and individual line-of-business revenue.
Result: There was an initial drop in credit card balances among customers
who accepted the home equity offer. However, by the end of a
six-month period, credit card balances were restored to pre-existing
levels and there was no change in risk behavior. Total bank profit
increased 40% and total bank attrition decreased 30% for customers who had
both a home equity loan and the client's credit card versus those with
only the client's credit card in a matched control group.