Variable Data One to One Marketing

Improving the Relevance of Direct Mail Campaigns

The Way It Used to Be

• “Broadcast” Marketing– Same message delivered to all recipients– Promotion/offer not relevant for all– High quantities and low response rates

• The Result:– Low cost per piece– High cost per response

The Way It Is Now

• “One to One” Marketing– Specific message delivered to specific demographics– Promotion/offer relevant to each recipient– Lower quantities and higher response rates

• The Results:– High cost per piece– Low cost per response

One to One Marketing Methods

• Direct Mail

• Variable Data Printing

• Matrix Mailing

• E-Mail Marketing

• Micro-Sites

• Statement Marketing/TransPromo

• Data Mining/MCIF

• Mobile Marketing Options

Data Sources

• Data Enhancement and High Quality Mailing Lists– Ability to target specific demographics

including location (zip codes, carrier routes or distance radius), age, sex, income, home ownership, and MANY other criteria

– Lists are constantly updated for improved accuracy

Credit and Behavioral Models

• Credit agencies and other data aggregators have developed high quality behavioral models to identify qualified prospects.

• A few examples:– Economic Stability Indicator– Intend to Purchase Vehicle– Vehicle Dominant Lifestyle Indicator– Lifestyles and Life Stages

Additional Data Available

• Interests– Interest elements are derived from actual purchases

and self reported surveys.• Real Property

– Real Property data consists of actual property ownership information from county public records and models derived from public records, census data and self-report surveys.

• Buying Activity– Buying Activity includes consumer on-line, retail store

and catalog activity consolidated by month and by type.

• Ethnicity

Using Actual Credit Bureau Data

• React with the RIGHT offer at the RIGHT time

• Gain the ability to reach account holders who may be defecting to your competition in near real time

• Based on actual credit bureau data

• Deliver a firm offer of credit to cross-sell additional products at the moment a need has been identified

DataFlex Credit Monitoring Alerts

• Here’s What Happens:– Account holder applies for credit, an inquiry is posted

to his or her credit report

– These inquiries are categorized according to the type of financial product the account holder is seeking: mortgage, auto loan, installment loan, credit card or insurance

– Your account holder database is cross-referenced with these inquiries on a DAILY or WEEKLY basis and a “lead” is generated each time there is a match with the credit file

• Respond with a firm offer of credit or insurance immediately after receiving the lead

DataFlex Credit Monitoring Alerts (cont.)

• Select which category(ies) of inquiry(ies) you wish to target

• Leads are then pre-screened using your qualification criteria– Criteria can be based on numerous attributes including

credit score, debt load, etc.

DataFlex Credit Monitoring Alerts (cont.)

• We are now able to provide credit-based activity alerts from ALL THREE major credit bureaus.

– Close loans that would have gone to other lenders by monitoring credit bureau activity each day!

– Monitor and identify your account holders DAILY or WEEKLY for auto loan, mortgage, consumer loan and/or credit card inquiries.

– Set criteria to identify prospects that will qualify for a loan offer based on your specific pre-screen requirements.

– Send direct mail, e-mail and/or statement onserts to contacts whose credit has been checked and meet your pre-screen criteria.

– Provide outbound call lists for your call center to contact these account holders.

DataFlex Credit Prospecting Lists

• Extend pre-approved offers of credit to account holders and non-account holders based on actual credit score information.– Set criteria to identify recipients that will qualify for a loan

offer based on your specific pre-screen requirements.

– Send direct mail loan offers to qualified account holder and non-account holder prospects.

– And, of course, you can utilize the DataFlex reporting engine to measure the results of these campaigns!

Why All Three Credit Bureaus?

• Select which of the credit bureau(s) you want to receive data from– Even though you may prefer to work with one bureau

in particular, account holders may be shopping with a company that uses a different bureau

– Benefit from incremental lift by adding additional bureaus.

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Targeted Direct Mail

• Personalization– Can dramatically improve response rates– Use personalization to:

• Make your offer more relevant by using specific data

• Extend pre-approval offers for auto loans, credit cards, home equity, mortgages, etc

• Simplify response methods by pre-filling applications or reply cards

– Laser letters, postcards, self-mailers are all viable direct mail campaigns at ANY quantity, no matter how small

Variable Data Printing (VDP)

• Digital printing technology is changing the game.

– “Press-Runs” are a thing of the past.

– Every individual piece can now be heavily customized based on what you know about the recipient.

– If it’s in the data, it can be used to make your mailings more relevant which will lead to improved results.

Variable Data Printing

• So, what can be variable?– Text

• From one word to the entire piece– Images– Colors– Branding– Offers– EVERYTHING!

VDP Example

• Imagine an Auto Loan campaign….• Available data includes:

– Intend to Purchase Vehicle• Used to identify prospects

– Recipient’s age– Recipient’s gender– Vehicle Dominant Lifestyle Indicator– Preferred Branch Location

• Other data possibilities: Presence of children, economic stability indicator, existing auto loan data

The Result:

Postcard Front

Recipient’s Name

Color Determinedby Gender or Image Used

Photo Determined by Age and Gender

Phone Number Determined by Branch Affiliation

Postcard BackRecipient’s Name

Image Determinedby Vehicle Dominant Lifestyle Indicator

Mobile device Quick Response Code

Return Address, Hours and Phone Determined by Branch Affiliation

Loan Officer and Phone

Determined by Branch Affiliation

Offer Determined by Credit Worthines

s

Recipient’s Name and Address

Quick Response Codes

• Drive print marketing recipients directly to your site from any web-enabled phone

• Scan a code with a free QR Code/Barcode app.

What is a QR Code?

• A 2d barcode with embedded data such as web site URLs, phone numbers, e-mail addresses, calendar events, etc.

• QR code is short for Quick Response code.

• Numerous barcode and QR code scanners are available for free in smartphone app stores.

• Once the QR code is scanned the smartphone will automatically launch the requested web page, call the embedded number, draft an e-mail, etc.

• NO TYPING REQUIRED

Why go mobile?

• According to the Morgan Stanley Internet Trends Report (June 2010):– More smartphones will be purchased annually than

desktop and notebook PCs by 2012• In North America, this is already happening

– There are 1.6B internet users worldwide and 4.1B mobile subscribers.

– There are 5 major trends converging that are causing massive mobile internet growth: 3G/4G, social networking, video, VoIP, impressive mobile devices

– By 2015 “more users will connect to the Internet over mobile devices than desktop PCs.”

Track QR Code Usage

• LKCS Usage Statistics:– Monthly/Yearly

visitors– Weekly Visitors– Daily Visitors– Device Information

Thank You!

Sid HaasVice President of Business Development

LKCSDirect: 815-220-3904

E-Mail: sid.haas@lk-cs.com