The credit union’s goal was to offer members something different. In need of loans at a time when they were also celebrating their 75th anniversary, they decided to combine a special loan offer with a new delivery channel.
Offer a higher-than-usual maximum personal loan amount of $25,000 with a lower-than-usual interest rate of 7.5% APR with a 60-month repayment term.
One per household, or 8,695. No further demographic criteria was used.
- one of three ads included in a magazine
- one eMail blast
Return on Investment: 240%
A 1.1% response rate was recorded during the first 6 months, during which 97 loans were closed, for a total of $1,002,981. The prorated cost of the promotion was $4,167. The interest paid to date was $23,145. Using a 1% net spread, the ROI was 240%.