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Credit Card Cross Sell: A Banking Case Study

The Company

A prominent U.S. regional bank

The Challenge

The bank regularly conducted direct mail campaigns to cross-sell its credit card offerings, but often failed to isolate the true incremental impact of the outreach on key performance metrics. Management wanted to launch an acquisition campaign aimed at Money Market customers to cross-sell credit cards, but was unsure how to most effectively target their efforts.

The Solution

Using APT’s Test & Learn® software, the bank matched a group of test customers selected for outreach to a held out control group that did not receive the direct mail campaign. This allowed the bank to understand the test vs. control impact of the initiative on response rate, utilization, and revenue metrics. The analysis showed that the direct mail drove a significant increase in revenue per mailed customer, and was most successful with customers that had low deposit growth in the previous year.

The Results

By tailoring the program and targeting customers most likely to respond best to the offer, the bank improved profits by $3.8MM.
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