Key CCG Services

A large regional bank saw the writing on the wall as market forces were pushing change in the mortgage environment. The bank knew that both interest rates and home prices were increasing — and that was putting the brakes on business in the purchase mortgage and refinance markets. In response, though, home equity financing was picking up as an option for homeowners who were staying put or couldn’t find an appealing (low-rate) reason to refinance, but wanted a smart way to borrow funds.

The bank wanted to take advantage of these home equity tailwinds. But they weren’t alone. A focus on home equity was becoming the popular move among financial institutions across the country. In order to stand out in a crowded field, they would need a strong way to differentiate their HELOC marketing efforts.

Let’s Talk HELOC Strategy

That’s when the bank dialed up CCG and started talking strategy. With a 40-year track record in loan marketing, CCG has extensive experience in the first and second lien space, giving us deep insight on what works, what doesn’t and how to stand apart from the field.

CCG started the strategy session with a two-pronged approach.

Let’s Get Personal

To get the conversation started, CCG decided on a tactic that would show a personal connection within the direct mail piece itself — something that would go beyond merely a personalized name and address.

To do this, CCG turned to its proprietary database holding information on the majority of properties in the U.S. We then bumped the bank’s own database against this list to determine which people were customers and which were prospects.

CCG was also able to estimate each property’s value and current loan amount — and from that develop an estimated amount of available equity. Every person who met the bank’s lending parameters and CCG’s targeting recommendations was added to the mailing list for this campaign.

The loan data was central to the new direct mail piece and the overall HELOC marketing strategy. It allowed CCG to develop a custom home equity report for every individual, highlighting very personal and engaging data points.

Let’s Celebrate

By incorporating those real numbers — rather than examples unrelated to each person’s individual situation — the direct mail piece was able to deliver a high degree of relevance. That led to higher engagement — and results.

  • 5% to 7% of the bank’s total volume of new home equity line of credit accounts was attributed to the direct mail campaign
  • New HELOC accounts coming from the direct mail piece were opened by both existing bank customers and prospects

The moral of this case study? The right data is the foundation for effective personalization — and personalization pays off.