Managing Delinquency with Fast Learners

It seems odd that marketing technology could be used to manage attrition and delinquency risk but, here we are – doing just that. Our customers are now machine learning audiences at high risk of delinquency and selectively offering skip a payment options and engaging early with at-risk customers to avoid loan defaults.  Early results are impressive, here they are: 

 Figure 1 - Interview Application at logout

Figure 1 - Interview Application at logout

 Table 1 - Delinquency campaign results

Table 1 - Delinquency campaign results

And here’s the lead segment detail:

  Table 2 - Delinquency campaign lead segment detail

 Table 2 - Delinquency campaign lead segment detail

First off, the logout click-through rate is extraordinary at 18%, demonstrating excellent targeting and channel engagement. Secondly, the 35% average conversion rate is extremely high and well North of 10X the industry average conversion rate of 2.35%*. Overall, campaign yield, or CTR x conversion rate, is over 100X benchmark targeted banner performance.  

Looking into the segment data, most customers wanted to learn about skip-a-payment via electronic means – with only a few customers wanting to speak with a customer service representative. Perhaps this digital preference reflects increasing digital bias by consumers or maybe it reflects embarrassment – or both. In either case, the awareness, education, and work to help customers manage their loan accounts got done in about 10 seconds, without compromising the digital banking experience.  

Increasingly, machine learning and digital engagement technology is doing, at scale, what was impossible only a few years ago -- and our customers are leading.  

If you’d like to try interview marketing for yourself, try Micronotes for 30 days free; it’s the biggest no-brainer in banking.  

 

*http://searchengineland.com/7-conversion-rate-truths-will-change-landing-page-optimization-strategy-191083