Prospect Direct Mail

Client: Consumer Finance


  • Reduced mailing costs
  • Led to an increase in closed loans
  • Marketing spend is down; profits are up


Our consumer finance client makes small loans to individuals who are unable to meet the strict lending criteria of traditional banks. They use direct mail to reach out to prospective borrowers using two types of offers: invitations to apply and guaranteed loan offers. Their traditional approach was to saturate geographic locations around their branches with offers, typically sending out 1.2 million mailers per campaign.


The goal of the targeted prospecting program was to reduce the number of pieces sent while simultaneously increasing the response rate, with the ultimate objective of successfully closing more loans.

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Direct Mail

Using analytics, we’ll help you decrease the total number of mailings you send while increasing your response rate. The key is a more targeted approach.

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Achieving this goal required a strategic approach to creating mailing lists that stretched far beyond zip code and credit score. Predictive modeling was deployed to determine who, in each geographic zone around a branch, would be the most likely to borrow money based on multiple criteria that included borrowing history, credit score, distance from a brick-and-mortar branch, whether or not they had worked with the company before, and other factors.


The models narrowed the campaign mailing list from 1.2 million people to 800,000 targeted, pre-qualified prospects. This reduction in the volume of mail sent allowed the client to significantly reduce printing and postage costs on the front end.

With the new model in place, response rates rose, and because the prospects were pre-qualified, loan applications and ultimately, loan closures also increased. Over time, the firm was able to significantly reduce its marketing budget and lift sales and profit at the same time.