“We started to read the tea leaves, realizing that rates are on the way up,” said Brian Fleming, Business Intelligence Analyst at FedChoice Federal Credit Union. “We began to ask ourselves, ‘How can we work smarter, not harder and quickly at that?’ We did not always have the bandwidth to spend on massive, catch-all-type offers and campaigns.”
FedChoice Federal Credit Union (FedChoice) was enjoying a recent boost in membership, and its staff had already been hard at work adapting to the evolving needs of these new members alongside its existing ones when a big hurdle landed in its path: the Federal Reserve was steadily increasing interest rates, and accurately targeting qualified members for additional lending opportunities became more difficult as a result.
“We knew we had an abundance of credit report and core data, just no good way to harness it,” Fleming explained.
Enter: MeridianLink Insight & MeridianLink Engage
Luckily, there was an easy fix for this data dilemma. FedChoice implemented MeridianLink® Insight data analytics solution and MeridianLink® Engage marketing automation tool as a pair to provide a deeper understanding of existing data, improve member segmentation, and identify operational inefficiencies in the lending process. As part of the MeridianLink® One platform, Insight and Engage seamlessly integrated into FedChoice’s MeridianLink® Consumer, MeridianLink® Opening, and MeridianLink® Portal programs for immediate access to their existing data.
MeridianLink Insight gave FedChoice the power to analyze its data through various criteria, which helped the credit union identify a new priority segment: members who had applied for and been approved for a loan within the last two years, met the credit standards, and possessed targeted tradelines. This segmentation strategy enabled FedChoice to create a highly refined list of members qualified for personal loans and HELOCs, ensuring that staff’s marketing efforts remained directed toward the most promising prospects. Daily campaign performance insights helped the credit union further drive results and discover additional growth opportunities.
That’s where MeridianLink Engage came into play. Engage helped the credit union pinpoint additional members who met similar criteria to those within Insight’s targeted list. Fleming noted how useful this ability was, saying that instead of staff casting their net wide “and maybe finding someone who just kind of happens to fit the mold of who we’re looking for, we can have a much more narrow list, market more directly, and get results straight off the bat.”
Engage seamlessly integrated with FedChoice’s core and payment processors, as well as with other marketing execution partners, to optimize resources and increase member engagement and revenue through relevant offers. This holistic approach meant that each member interaction was tailored to their specific needs, preferences, and financial goals.
The Results? Increased Loan Funding & ROI
FedChoice’s multichannel campaign included mail and email touchpoints, providing multiple opportunities to engage the target audience, and the campaign also leveraged personalized incentives to further motivate the audience to act.
And it worked.
The results of the campaign were nothing short of remarkable. Within just four weeks, FedChoice saw a staggering 50% increase in loan funding compared to previous months, which was accompanied by a nearly 10% increase in the funded-to-total-applications ratio, underscoring the effectiveness of Insight and Engage in optimizing the lending process.
The personal loan segment achieved a total ROI of 1,897%. Among targeted members, 7.05% opened a new product, with 3% opting for a personal loan and 1.9% selecting an auto loan. Similarly, the HELOC campaign resulted in a total ROI of 1,986%, with 12.44% of those targeted members opening a new product.
Fleming concluded, “I’m a data guy, not a marketing guy. But I can plainly see in the data that the campaigns are more effective, the customer experience is better, and our opportunities and subsequent ROI increased. And membership and share of wallet can both grow as a direct result.”
Discover How Insight & Engage Can Help Your Institution
MeridianLink Insight and MeridianLink Engage provided FedChoice with a comprehensive toolset to improve member outreach and engagement while driving tangible business results. This data-driven approach allowed the credit union to pinpoint the exact members who would have the highest potential yield, creating increased operational efficiency and a better overall member experience.
And the same can be true of your institution!
Check out our latest Datasheet to learn how to convert your data into optimized experiences and revenue-generating opportunities with MeridianLink® Insight—a turnkey business intelligence solution designed to help your financial institution make quicker, more informed decisions.