Driving Customer Acquisition Through Marketing Mix Optimization – Credit Cards
A leading credit card issuer was looking to expand customer acquisition by optimizing its marketing mix and increasing marketing budget. Historically, marketing investments had been measured through direct attribution, with limited insight into upper funnel tactics and the interaction of programs—the company wanted to change this. The client had a strong internal analytics team and wanted to build an in-house marketing ROI capability through hands on training and IP transfer as part of the engagement.
After working closely with the client to get a solid understanding of its business and marketing processes, we developed models that detailed how effective various direct marketing and brand media programs were in driving credit card applications across each of four credit segments. The client organization’s analytics and statistical group worked closely with the consultants team to learn through hands on training the methods, tools and process for successful marketing mix modeling implementation. Finally, after delivery and training the client licensed key tools, methods and code based to be used in internalizing the MMM process.
Based on insights from Truesight’s analysis, the client was able to optimize the marketing mix to drive an incremental 10% of accounts booked across the portfolio while also maintaining the desired threshold of up-market customers. Overall marketing ROI increased 10%, translating to an additional $103MM in lifetime value from the same $617.4MM annual budget.
Additionally, through training, technology and intellectual property transfer, a fully operationalized MMM capability was setup internally so the client could leverage its own resources to continue the MMM program.