New England Federal Credit Union employs data analytics strategies to enhance credit card program
WILLISTON, VT (August 25, 2014) — A highly targeted marketing campaign powered by data analytics has earned New England Federal Credit Union (NEFCU) impressive lifts in both average balances and overall portfolio growth.
“Our members are like most consumers – inundated by marketing. That makes it critical that we are delivering truly valuable and customized promotions,” said Jen Seaver, consumer loan manager for NEFCU. “Data analytics is a powerful strategy for achieving exactly that, and the proof is in the results of this data-driven campaign.”
Unique offers were delivered to several cardholder segments, which were created based on factors such as a cardholder’s engagement with the credit union, current and past behavior, card usage and balance levels. Test and control groups were designated in each campaign to allow for true measurement and to inform future campaigns. While the control group experienced an average balance change of less than 1 percent as compared to last year, the test group saw an average balance increase of 9 percent.
The highly targeted campaign resulted in a 72-percent year-over-year lift in balance transfers and an overall year-over-year balance growth of 13 percent.
Seaver credits the credit union’s partners The Members Group (TMG) and IQR Consulting (IQR) with the campaign strategy. “Working alongside TMG and IQR queued up our team for success,” she said. “The talent and commitment of our people combined with the insight and knowledge of TMG and IQR boosted our results in ways we couldn’t have anticipated. Aside from enjoying the benefits of a growing and healthy portfolio, we anticipate the learnings from this campaign will greatly improve the results of future marketing efforts, further proving the value of customized marketing to our members.”
About New England Federal Credit Union
New England Federal Credit Union (NEFCU) is a member-owned financial institution serving communities in the six counties of northwestern Vermont. With more than 89,819 members and $1 billion in assets, it is the largest credit union in Vermont. For more information, visit www.nefcu.com.
About IQR Consulting
IQR Consulting is a leader in portfolio and financial analytics, reporting, statistical modeling and campaign management. The analysts at IQR are experts in the use of segmentation as a means for highly targeted marketing. With accurate and actionable insights and analysis, IQR helps banks, credit unions and casinos leverage data assets to increase profitability and to better compete against larger institutions. For more information, visit www.iqrdataanalytics.com.
About The Members Group
The Members Group (TMG) is dedicated to creating customized, technology-driven card processing and payment solutions for credit unions and community-based financial institutions across North America. Innovations in fraud management, loyalty programs, alternative payment systems and analytic reporting, and the competitive advantages they create, have helped TMG forge a new standard in offering cutting-edge credit, debit, ATM, prepaid card products and a P2P payment solution. For more information, visit www.themembersgroup.com.