How to Find Customers for a CD Offer

Objective:

In this How-To, we will learn how to use Core iQ to more effectively find accounts with large deposit balances and then upsell them on a timed account, such as a CD or IRA account. We will explore the following topics:

  • Using Core iQ reports to find the right high balance customers for a timed account offer
  • How to create an effective point-in-time campaign to upsell existing core deposit customers on a new timed deposit account

Many of our clients have begun using Core iQ to find their best fit customers for offers relating to timed deposit accounts. Identifying the individuals who would be most interested in taking part in a 12, 24, or 36-month CD offer is not always an easy task. That’s why we wanted to outline just how simple it is within Core iQ to segment users based off of data coming in from your core. This will allow you to create the best audience for your next CD offer, giving you a better chance to get your customers more involved in your banking organization.

Finding the Right Metrics for Your Report

One of the first things you want to think about is what metrics really matter to you when it comes to finding the right Core Deposit customer for this offer. Is your ideal customer someone who has more than $3,500 in a savings account? Is it someone who has been with your institution for more than 6 months? Or maybe it’s someone with a particular mixture of savings, checking, and/or money market accounts. Analyze what things signify an ideal recipient of a cross-sell offer for a timed deposit account at your financial institution. If you are having problems coming up with ideas, not to worry. We have taken the time to look at what has worked for many of our customers, and will outline those recommendations below.

deposite_customers_wout_selected_service.png

Identifying your Best Fit Customers

To find our ideal Timed Deposit customer, we will be using a Core iQ report aptly titled “Core Deposit Customers Without a Selected Service”. This report will allow us to solely key off of customers that currently hold one or more Core Deposit accounts within our financial institution. Since we want to only focus on these customers at this point, this report will work perfectly. You will find that we have a lot of different options in this area, but the main items that we want to highlight are the fields listed below:

HAS ACTIVE ACCOUNT IN
In this field, we want to include all of the Core Deposit accounts that we want to use to find active customers. For the purposes of this tutorial, we will look only at customers who currently have one of our ‘Personal Checking’, ‘Personal Savings’, or ‘Personal Money Market’ accounts. These accounts may be different for your financial institution, but choose the most broad audience first and then go back to filter out those who might not fit.
BUT LACKS AN ACTIVE ACCOUNT IN
For this field, we want to only seek out customers that do not have an active CD account at our financial institution. Within our Core iQ data, we only have one service group listing for CDs, but your financial institution might be different. Include all instances of your timed deposit service groups within this field to maximize the audience.
MORE SPECIFICALLY, LACKS THIS SERVICE
If we were running a special promotion for a 12, 24, or 36-month CD at one or more of your branches, you could use this field to find only those that did not have a version of that CD. This would allow you to pull in those that currently do have an active CD account, just not those with that specific CD service. This is ideal when you are offering to ‘roll over’ existing CD accounts into longer term account at a higher rate.
NUMERIC RANGE
This field allows us to filter customers out based on a set numeric amount. This range can be something like the Current Balance or the Available Balance, but in this tutorial we will be using the Average Monthly Balance as our metric. Core iQ does not calculate this average in the system, but rather it receives this number from your data import. Whatever your financial institution has decided internally to provide to Core iQ as an ‘average monthly balance’ will be used here. Many of our customers have a minimum opening balance on CD promotions of $2500. We find that customers are more likely to convert if they are required to ‘lock in’ no more than half of their current savings. That’s why we have chosen to seek out only those that have an Average Monthly Balance of $5,000 or more.

gif9.gif

Should I Use Email, Postcard, or Both?

The question of what to send after you click the Convert to Campaign button on this report is a valid one. Is it better to send an email only? Or should you queue up a Core iQ email with a print fallback? While we recommend reaching out to all of your customers with an offer like this, we do understand that budgets can sometimes get in the way. What we suggest for those that do not have the budget to send a high volume of postcards, is to send an email first. Then, use Core iQ to analyze that data to look for trends in what customer characteristics were most likely to predict a successful conversion. Were you more likely to see a conversion with those who had a higher Average Monthly Balance? Or maybe having an active Checking account was a better predictor of success than having an active Money Market account. Or maybe you just saw successes across the board!

Once you have that data back, we highly recommend recapturing those missing customers by running the Core Deposit Customers Without a Selected Service report again with additional metrics. Core iQ will of course remove those that converted on the offer, and you will have the opportunity to capture those whose email you don’t currently have on file. It's important to remember that Core iQ is updated nightly, so running a new report can mean the addition of more customers to your audience.

In this situation, depending on how soon after the first campaign you are sending this communication, you can use the same email template but with a print fallback. If for example, you have waited two weeks before reassessing this campaign, you could set the Customer Receives No More Than Once Within option on the email template to 30 days. This would allow you to send this email out to those new to the audience who had not previously received the template, while also capturing your customers who don’t have a valid email address on file. It's extremely important to maximize your cross-sell opportunities with existing customers, and this method provides a more ‘budget friendly’ method for electronic and direct mail cross-selling.

0 out of 0 found this helpful