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Finding the right prospects online A Sallie Mae case study
Rick ErwinPresident, Targeting,Experian Marketing Services
Joyce D’AddioDigital Marketing DirectorSallie Mae, Upromise
Jennifer AstleSr. Director, Channel MktgSallie Mae, Upromise
Your presenters
Bob BaerDirector of Online AcquisitionSallie Mae, Upromise
Agenda• What’s old is new• Who is Upromise?• Upromise’s business challenges• Why Experian?• Modeling and optimization• Display campaigns• Campaign KPIs• Results
Then Now
List Audience
Service Bureau DMP/Onboarding Partner
Printing & Letter shop DSP
Direct mail Digital Media Impressions
What’s old is new
Marketers: People:Delivering • the right offers• at the right time• to the right
person
Searching • what they want• when they want it• where ever it may
be
Direct Marketing
Digital Marketing
Who is Upromise by Sallie Mae?
Upromise by Sallie Mae• Upromise is a simple, yet powerful cash back rewards
program where members can turn everyday spending into money for college.
• 15MM+ members; $700MM+ in member savings to date• Mission: “To help people save, plan and pay for college”• Member composition:
• Parents of high school students• Parents of young children• Students
• Free to join
How members can save• Earn 5% cash back on online purchases with 900+ retailers & travel
agencies• Earn cash back when dining, getting groceries, or filling up your tank at
specified retailers• Earn 1% on every purchase using a Upromise credit card
What members can do with their earnings• Keep in Upromise account• Transfer Upromise savings into a 529 plan• Use Upromise savings to pay down a
Sallie Mae student loan• Transfer Upromise savings into Sallie Mae high-yield savings account
Upromise Products
Upromise Business ModelHow does Upromise make money?• When a member transacts with a Upromise partner, the
partner funds the member’s savings and Upromise revenue
Who is Upromise’s ideal customer?• Joins and stays engaged with the rewards program • Adopts 1 or more financial products
Business Challenges
GoalCurrent statusFind the right customers @ the
right time who will transact consistently and engage with 1 or
more Financial Products
Many people signing upfor free service, but not
transacting regularly
$M $M $M $M $M $M
Revenue increased by
150%Year over year
Key Challenge
From casting a wide net… To honing in on the ideal target
Low Engaged Members
Grocery
AffiliatesProspect
Key Question• How do we find our ideal target and increase the odds that the prospect will
become an engaged member?
• “Ideal” Upromise member- Transacts frequently with our partners- Eligible for financial products - Skews toward higher credit quality with above average levels of
disposable income
Database MarketingConcepts
• Apply database marketing concepts and strategies to online display
• Powerful targeting capabilities available by combining traditional marketing strategies and new technology
• Advertise to your ideal prospect where they are, not where you think they might be
Traditional Offline Marketing Goes Digital
New, active Customers
Join Upromise
DeliverDisplay Ads
CookieTargetingModel
Bestcustomer
SummaryKey question: How does Upromise find customers who will engage in the Upromise service?
Why Experian?
• Confidence in data quality and analytical capabilities
• Breadth of data sources
• Reach of ad network
• Similar privacy and compliance standard
Modeling
Define High Value Customer within Sallie Mae CRM1
Apply to ConsumerView and identify 200-300 variables that best define audience2
Create model with these variables.Rank entire US population3
Target top deciles online4
Display Modeling Process with Experian
Bestcustomer
Find moreof them
Identify andprofile your
best customer
Getting Started• Use key criteria for defining
“best customer”
• Create model usingUpromise’s existingcustomer base
• Build lookalike models to find other people wholook like Upromise’s best customers
Model ObjectivesTarget individuals with the following attributes:
• Prospects with a high potential to be active Online Mall purchasers
• Prospects with a high potential to develop into Financial Product consumers
• Customers who have been enrolled since 2010 and have had online mall purchase since 2011
Max(score 1,score 2)
Sallie Mae loan holder look-alike
model score
Credit Cardlook-alike
model score
Online look-alike
model
Online Mall Purchasers – Model
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Perc
en
t o
f O
LM
Cu
sto
mers
Percent of Prospects
Model Lift: Online Mall customers vs ConsumerView
Baseline Online Mall Customer model
38%
34%
72% of likely best customers are found in top 30% of ranked data
Display Advertising
Define best customer, create models, define
audiences
1
Campaign Execution and optimization
4Set Segment Objectives:What does success
look like?
2
Campaign design: creative, test plans,
media plans
3
Display Campaign Process
Define best customer, create models, define
audiences
1
Defining Your Universe1. Define your best customers
– Revenue
– Secondary product adoption
– Method and timing of acquisition
2. Create the Model
– What attributes separate your best customers from the rest?
– What behaviors should the model predict?
3. Define your Audiences
– Life stage
– Product adoption
– Self-selected (how they use your product or service)
Set Segment Objectives:What does success
look like?
2
Segmentation and Defining Objectives1. Segment definitions should be aligned with
goals & products
2. Segment definitions need to consider size – the larger the segment, the better yield optimization opportunities
3. Multiple segment campaigns generally outperform single segment campaigns
4. CPA & CPC objectives are preferred over CTR and eCPM
Campaign design: creative, test plans,
media plans
3
Campaign Design1. Creative
– Align creative with segments
– Reinforce messaging and creative in organic channels
2. Select Ad Networks
– Consider reach and traffic volume
– NAI/DAA standards
3. Impression Frequency and Lookback Windows
– Test # of repetitions required for conversion
– Determine appropriate look back window for counting clicks and view-thrus
Home Value
Online ShopperActive Credit Cards Presence of Children
Geo-locationAge & Income
Data Selects
Data Models
Execution and OptimizationNow that we know who else in ConsumerView would be a good Upromise member, we use Experian’s display capabilities to find them
Campaign Execution and optimization
4
Results
New, active Customers
Join Upromise
DeliverDisplay Ads
CookieTargetingModel
Bestcustomer
SummaryKey question: How does Upromise find customers who will engage in the Upromise service?
MES = Median Credit Score
For acquired members not exposed to Experian campaign: Lower credit scores
For acquired members exposed to Experian campaign: Higher credit scores
Results
01 02 03$0
$100
$200
$300
$400
$500
$600
20122013
Results2013:Shifted to quality over quantitySpend per Shopper is up 55% vs. 2012!
Next Steps
1. Engage our customers through the channel(s)
they prefer and/or transact on
2. Implement a mobile strategy
3. Drive for cross-channel optimization
?Thank you…