Centex Home Equity - Predicting A Need (1,430 words)
However, he adds, "We also use direct mail, because it is preferred by some prospective customers who don't like to do business over the phone."
Centex outsources its telemarketing efforts to mid-sized vendors that specialize in the mortgage industry. "It's not a complex script, because it's just to prequalify that there is interest," Greenbaum says, noting that once a prospect is ready to take the next step, he or she is transferred to a loan officer or can be sent more information.
The direct mail efforts Centex uses are an envelope package that includes a letter, featuring copy that gives an example of the kind of loan the person might qualify for, and several response vehicles: a BRC, an 800 number and a Web address.
The company's Web site at www.centex.com gives prospective customers a good deal of information about home equity loans, including a chart that lets people figure out approximately how much they can borrow. Centex is starting to test e-mail as a prospecting tool, says Greenbaum, but he adds it's been hard to find opt-in lists.
Follow Up on the Back End
In addition to external data sources, Centex also adds response and promotional data it's acquired through telemarketing and direct mail contacts with prospects. "Through analysis," Greenbaum says, "we can take a look at who responded and who didn't and put that into our database to create models for future campaigns."
Additionally, the follow-up information can give Centex clues for future business development: "The reasons someone declined a product might give us guidance on developing a new product," he explains.
Detailed analysis reports are run on each marketing campaign to evaluate the cost-effectiveness of the selection criteria used and the specific marketing channel. "For example, we can analyze the acquisition cost of a direct mail program compared to a telemarketing campaign or an Internet advertising test to determine the most effective marketing mix to sell our products and services."