Many businesses would like to think that they know enough about their customers to make relevant offers and communicate effectively. But the million dollar question remains: “How well do you really know your customers?”
Sometimes, a marketing database (if you’re even using one to drive marketing campaigns) doesn’t have all the data to tell the whole story. It’s more common than many would think; but the good news is there’s an easy solution.
Whether you’re offering mortgage refinance, auto loans, retail discounts (coupons) or some other direct response promotion there is always going to be divide between having a picture of your customer and having the full picture of your customer.
With record low rates, mortgage refinance is a very hot product in the banking industry. A lender might decide to pursue homeowners that have owned their home for 10+ years (with the assumption being that the homeowner likely has equity in the home and might be looking to get cash out, lower their APR or switch from a variable rate to a fixed rate mortgage). Using a customer database, the lender might get a picture of its customers and run this data extract thinking it’s a solid target of customers.
But many more variables than those likely to be in the typical customer database come into play and would give the lender the full picture. For example: What rate is the homeowner currently paying? What’s the current value of the home as compared to the current mortgage (do they even have any equity in the home)? What are the terms of the homeowner’s current mortgage (15-, 30- 40-year; Fixed or ARM)? What is the estimated household income of this homeowner/family (for income-to-debt ratio calculations)?
Deeper insight provides for a much more refined, qualified list of targets and ultimately will lead to a higher success/close rate on your efforts. You need a full picture on your customers and targets and should utilize a provider with a National Consumer File and National Deed File (which are rich with these dataset and more), to help you enhance your direct marketing efforts. Then you can truly know your customer!