More Balance Transfer Applications Through Better Consumer Research
Balance transfers can be an effective way to grow a company’s credit card business. These transactions lead to additional upfront payments and can also recruit new, loyal customers from competing companies.
To find balance transfer candidates, lenders often rely on mass marketing, such as large mailings of balance transfer offers. To maximize marketing budgets, credit card providers should try to pinpoint those prospects most likely to accept a balance transfer, rather than mass mailing large untested groups of prospects.
Proven results for more balance transfers
Equifax Dimensions™ can help lenders maximize their marketing budgets and increase profitability through balance transfer offers by taking advantage of in-depth consumer information. Using Equifax Dimensions, lenders can analyze consumer credit behavior from the past 24 months to help identify the best prospects for balance transfer offers.
In a recent test, one lender wanted to identify ideal consumers who would transfer $500 or more on a revolving balance in the next 12 months. The study found that when using Equifax Dimensions™ there was a 7 percent increase in predicting balance transfer propensity for the group of consumers tested. Identifying and closing additional balance transfer opportunities can help companies capture greater market share and build organic revenue. Of course, results may vary for other companies.
Finding new balance transfer candidates always provides a challenge. However, in this test, the results are clear: better data helps lead to more balance transfer offers. Taking advantage of extended consumer behavior information to identify better prospects, companies have the chance to get a clear edge over the competition.
Equifax Dimensions is a product that must be used in accordance with the Fair Credit Reporting Act (FCRA).
Image source: Flickr
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