Exploring the impact of credit risk decisioning at pre-screen

Incorporating risk-based marketing strategies at pre-screen can have a powerful impact on campaign outcomes.

Using alternative data for refining outreach lists can help lenders:

• Reduce campaign costs

• Improve response rates

• Increase approval rates

• Drive better portfolio performance

• Capture more high-lifetime-value customers

Continue reading to see practical examples of how risk-based marketing can help drive better outcomes

Each month, a large lender mails 50M pieces of direct mail with a current response rate of 2.5%.

The organization would like to improve this response rate 1–2% on the next pre-screen campaign.

The lender uses alternative data to help strengthen their campaign:

Expanding addressable market to include 1 million new prospects
Increasing the likelihood that new prospects will be approved for credit
Reducing risk by swapping in valuable prospects (the 1 million new prospects) and swapping out high-risk customers (1 million existing prospects who now evaluate as high-risk)

By using alternative data to refine their outreach list, the lender achieves:

As the economy has shifted, a large lender’s outreach efforts have proven less effective over time.

The lender would like to refine their pre-screen list filtering processes to drive better outcomes.

The lender uses alternative data to optimize their mailing lists: