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Financial Institution – Marketing Spend Optimization

Goal: To determine how to optimally target marketing dollars against an existing consumer loan portfolio to maximize net present value (NPV) in direct mail cross-sell programs.

TrueNorth Process: By gathering and analyzing data for cross-sell programs conducted during one month, we utilized a combination of customer segment, risk score and response likelihoods for the various cross sell programs.

Result: Maximum NPV for respective mailings using the optimization matrix resulted in $6.44MM, attained by mailing 43,425 pieces. On a Gains Chart this example translates into: If 38.6% of the population had been mailed, 100% of the forecasted 4 year NPV would have been realized.


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