Many financial services organizations rely heavily on high-volume prospect mailings to generate new business. The United Kingdom’s Northern Rock is taking a different route, using print and general advertising to prospect, and keeping its direct marketing dollars focused on retention and cross selling.
The move is paying off: Thanks to an overhaul of its database marketing strategy, customer defections are down and the company anticipates steady growth. DM response rates have jumped over the last two years, with an 88% increase in response to secured loan campaigns and a 22% rise in unsecured loan response.
Specializing in mortgages and personal loans, Newcastle, England-based Northern Rock’s network consists of 76 branches, along with mortgage centers, telephone and Internet operations. New mortgage business arrives via a national sales force, a widespread brokerage network and Northern Rock Direct, an online and phone-based lending operation.
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