Inside Marketing: 4 Steps to a Line of Credit Increase Campaign for Portfolio Growth

Credit unions with low risk tolerance that also follow outdated underwriting models may soon find themselves completely out of the credit card game. A proven strategy for becoming a strong credit card issuer in today’s competitive environment is data-driven line of credit management.

$4.7 billion The University of Iowa Community Credit Union, North Liberty, Iowa, has set a goal to increase outstanding balances without high marketing costs. To achieve this goal, the credit union partnered with data analysts who designed and deployed a personalized line of credit increase campaign for each cardholder.

What differentiated this from more traditional campaigns was the diligent four-step process followed by the credit union. The highly targeted approach helped ensure that the right offer reached the right cardholders at the right time, increasing both the effectiveness and ROI of the line of credit 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 over a 10-month period.

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