Targeted Marketing Campaigns for Credit Unions: HELOCs

Credit unions have access to more data than ever before. Why not leverage your data to create targeted marketing campaigns that benefit your members – and your credit union? Whether using raw data extracts, core system data, or a combination of the two, campaigns can be tailored to narrow your communications to reach the right audience at the right time. Best of all, utilizing and leveraging member data drives better response rates than can be achieved in a mass media approach.

A Targeted Marketing Campaign Comes to Life

Home Equity Lines of Credit (HELOCs) can be a lifeline for members who already have a mortgage. Whether a small home repair, an emergency, or any myriad of expenses, HELOCs are a low interest solution that help homeowners when they need it. A targeted marketing campaign centered on HELOCs can provide value to members – and at the same time, help credit unions increase their loan portfolios.

Merrimack Valley Credit Union in Massachusetts and New Hampshire did just that when they partnered with Synergent Direct Marketing Services to launch a low-cost targeted marketing campaign that not only dramatically increased their HELOC portfolio, but paid for itself within the first month.

Leveraging Data & Making it Personal

Mining data efficiently and analyzing it in ways that inform and support your credit union’s decision-making and strategic objectives is essential when creating a targeted marketing campaign. Merrimack’s winning combination included both an ACH data file and a core data extract.

The HELOC offer was sent to 4,955 members who met the following criteria:

  • Members making mortgage payments to another financial institution through ACH
  • Members making mortgage payments to another financial institution through Online Bill Pay
  • Members making mortgage payments to another financial institution through Paper Check
  • Members with a MVCU Home Equity Loan but no HELOC
  • Members with a MVCU mortgage valued between $300K-$775K

It’s also important to personalize your message to the audience that receives it. By doing so, members feel the personal touch, which in turn allows you to build stronger member relationships.

The results

The results of the campaign answer the age-old question of whether investment in marketing is worthwhile – in the first year alone, Merrimack’s earnings on interest income produced a return of $20 on every marketing dollar invested.

Want to learn more about the campaign? Click below to read the full case study.