Many credit unions take a leap of faith when it comes to developing prospecting strategies. But effective marketing strategies are developed from deep analysis with clearly identified objectives. They are constantly evolving—no setting and forgetting. So, what are the basics of optimizing your prospecting efforts?
Unfortunately, far too many discussions begin with establishing targeting criteria before program goals are set. This leads to confusion.
Developing targeting criteria is kind of like squeezing a balloon—when you restrict one end, the other tends to expand. Imagine the effect of maximizing response rates when soliciting new loans. If no other criteria are considered, you could end up targeting high-risk individuals who cannot get approved elsewhere.
Obviously, we’re not interested in increasing originations at all cost; risk must be understood as well. But this is where things get complicated. Lower-risk consumers tend to be the most coveted, get the best offers and therefore have lower response rates and margins.
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