Centex Home Equity - Predicting A Need (1,430 words)
When looking at whom to target with its offers, Greenbaum says it requires a careful balancing act between determining need and analyzing risk. "These are people who have a real financial need. We try to help people consolidate debt. We also help consumers who may need a first or second mortgage to obtain money for home improvements, make major purchases or buy a home," he explains.
According to Greenbaum, to remain competitive, "Financial services marketers need to be extremely cost-effective in generating new business. That's why we focus on highly targeted direct marketing using sophisticated database marketing."
The Marketing Process
Once Centex identifies its prospect universe, it prepares the files of names to be mailed or telemarketed. Greenbaum describes the process as follows:
Centex conducts prospecting campaigns every two months based on updated database information and response data maintained by MITI. Company executives look at the selection criteria on their prior marketing programs and make adjustments based on prior results to improve future performance, also paying attention to things such as eliminating the six states in which they are not licensed to do business.
Models are applied to the data set to rank order responsiveness. Records are selected based on current lead demands and business goals for the next month by branch.
Finally, the company suppresses The Direct Marketing Association's Telephone/Mail Preference Service names and any credit bureau opt-outs, as well as any names on Centex's internal company opt-out file.
Once it's ready to contact selected prospects, a multi-channel approach is used. Telemarketing is the medium of choice for most of the company's contacts with prospects, with the remaining efforts being through direct mail.
Greenbaum says of the multi-media approach, "Currently, telemarketing is more effective. It's more immediate and we can transfer prospects to a loan officer immediately if they are ready."