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Repositionable Notes - First Charter Bank | |
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First Charter Bank lifted response rates with Repositionable Notes. |
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Objective First Charter Bank wanted to convince automobile owners to refinance their outstanding auto loans with First Charter at a promotional low-interest refinancing rate. Strategy First Charter defined their target market as automobile owners with outstanding loan notes of $7,500 or more. They advertised their low promotional rates through an extensive Direct Mail plan, testing the response of both existing customers and non-customers. |
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Tactics In the Spring, they mailed an offer to prospects to refinance their automobiles with First Charter Bank at a low promotional interest rate. Six months later, they followed up the initial mailing with a “Last Chance” reminder mail piece featuring a Repositionable Note on half of the envelopes that called special attention to the offer. Both customer and non-customer segments were divided into two equal test groups, weighing the impact of an outer envelope with a Repositionable Note attached versus one without. Results Although existing customers outperformed non-customers in both these categories, the groups that received the Repositionable Note in both categories outperformed their counterparts. First Charter elevated their response rate from 0.5% to 0.7% among non-customers and from 2.1% to 3.2% among their existing customers. They secured an additional 846 auto loans, 500 of which resulted from the groups that received the Repositionable Note. The return on investment was favorable as well. The $46,200 incremental interest income generated over an average loan cycle of 24 months offset the $3,200 invested to enhance their Direct Mail with a Repositionable Note. For More Information
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