Reversing Stalling Credit Card Applications
FedChoice Federal Credit Union (FedChoice FCU) found new credit card applications from existing members were stalling. To address this, the credit union sought to target members with a proper risk segment profile and present them with personalized, pre-approved credit card offers.
To accommplish this, FedChoice FCU also needed a more efficient process to identify the right members and get the campaign off the ground without putting too much pressure on internal resources.
Additionally, the credit union wanted to prioritize creating a frictionless experience for member acceptance and internal teams.
FedChoice Federal Credit Union turned to MeridianLink Engage for its ability to decipher data, segment customer lists, recommend campaign optimizations, and deliver a measurable ROI quickly and accurately.
New Credit Cards Opened with Continuing Transactions
Through its integration with Experian, MeridianLink® Engage identified over 4,000 active members who currently did not have credit cards through the credit union who were then segmented into tiers based on their risk profile for more personalized rates and credit limits.
The campaign offered two ways for members to save:
- Opening a new credit card within the first six weeks of the campaign for a low fixed rate
- Using the new card within a specific period to receive a gift card of variable value based on the amount spent.
Communications offered via MeridianLink® Portal and MeridianLink® Consumer integrations provided a frictionless offer experience to members—QR codes and digital links with a personalized URL (PURL) led members to a pre-filled acceptance form to submit. An abandoned cart email re-marketed to members who viewed the PURL but did not accept the offer.
By the end of the in-market period, the three-month campaign achieved a 511% total ROI, as well as:
- 4% target audience engagement via PURL utilization
- 2% of total audience qualifying by opening a new credit card for a 209% ROI
- 62% of new cards seeing continued transactions
Over 5% of the target audience also opened an alternative product, including new auto loans and deposit accounts. Members who qualified for the campaign by opening a new credit card did not simply shift their debit spending to the new credit card. Instead, the credit and debit combined spend grew steadily month to month.
Compared to the same timeframe two years prior 376% more credit cards were opened by active members..
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