Inside Marketing: 4 steps to a portfolio-growing credit line increase campaign
CUs can leverage data analytics to overhaul and effectively market credit card programs.
Credit unions with low risk tolerance that also follow outdated underwriting models may soon find themselves out of the credit card game all together. One proven strategy for becoming a strong credit card issuer in today’s competitive environment is data-driven credit line management.
$4.7 billion University of Iowa Community Credit Union, North Liberty, Iowa, set a goal to grow outstanding balances without a high marketing expense. To meet this goal, the credit union partnered with data analysts who designed and deployed a credit line increase campaign personalized to each cardholder.
What separated this from more traditional campaigns was the diligent, four-step process the credit union followed. The highly targeted approach ensured the right offer reached the right cardholders at the right time, increasing both the effectiveness and return on investment of the credit line increase campaign.
As a result, the data-driven campaign generated $7.7 million in incremental spend, as well as $3.4 million in incremental balances—all in the span of 10 months.
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