California Lender Experiences 400% Funding GrowthConsumer Lending Company Direct Mail Marketing Channel Growth Case Study

Direct Mail Marketing
A newly established California lender experiences explosive growth with MaxDecisions, Inc. multi-channel marketing strategy. With a combination of Direct Mail ordinations strategy in combination with Email Marketing strategy, this upstart California consumer finance company experienced a 400% growth in funding year over year.

MaxDecisions, Inc. helped this California lender in late 2016 and begin a firm offer of credit direct mail campaign to increase customer acquisition and decrease defaults. So far, we’ve conducted 4 separate direct mail campaigns and helped our client set record breaking daily fundings month over month.

Our client is pleased with the growth and loan performance and we’ve since helped our client to increase the mailing count and continue to manage the entire direct mail process from end to end.


The biggest challenge today with lenders is acquisitions and defaults. As lenders look to diversify their acquisition channel and gain control over their own leads, they are faced with many options and challenges. Online marketing is difficult because lenders don’t really know the credit quality and income level of online customers. Often, online applications or organic traffic falls out of the underwriting criteria due to credit or insufficient income and lenders ended up spending money on acquisition cost (data and staffing) and ended up converting less than a few percentages of organic traffic.


Prequalified or pre-approved direct mail solves some of these issues. But it does require an upfront cost to purchase the data from credit bureaus and print and postage fees. It isn’t for everyone but here are some of the benefits of using direct mail to fuel your growth.

We executed these prequalified direct mail strategies for our client in California and it is just what they needed at this stage of growth to deploy quality loans with limited budget. The direct mail generated loans have 50%+ less Cost Per Funded Loan and a fraction of default rate as some of the other online lead generation channels they’ve been using in early 2016.

  • Direct mail fundamentals:

    Direct mail campaigns are complex and difficult to execute. From pre-selection, scoring, pricing, mailing and tracking, it is a difficult feat to accomplished. However with seasoned operators at MaxDecisions, Inc., our standardized process management and quality control makes this complex process easier to manage. We’ve also deployed multiple check points from project leader to management team to analysts, each campaign’s key milestones are double, triple checks for correctness.

    For our client in California, we executed a set of pre-selection rules and used our internally developed models to initialize the first 3 campaigns. With ample responders, we then developed a set of custom response models just for this client. The 4th campaign was executed on the client’s custom score. We were able to remove some of the conservative pre-selection rules on the 5th campaign by score a greater population with the custom score.

  • Direct mail responder treatment (Promo Code or No Promo Code?):

    We helped our lender to stage the names and other identifiable information of each campaign within their customer database so when a customer responded to one of our mailers, the online origination system automatically recognizes the customer and the preset loan offer (amount, duration and APR%) is automatically populated for the call center agents and underwriters to complete the loan origination process.

    In this case, we leveraged a bit of technology to avoid the friction a promo code might cause for our customers. A promo code is typically used to uniquely identify the individual responder. We were able to use some simple matching logic to remove this part of the on boarding process.

  • Measure and measure some more:

    Each responder and converted customer give us additional insight into our selection process and our underwriting criteria. We helped our client in California to collect massive amount of credit attributes, income information, conversion and performance to further enhance their direct mail strategy. It’s an ongoing process to understand the behavior and responsiveness of different types of creative, letter design and seasonability. Measuring, tracking and testing is essential to keep your direct mail campaign healthy.

  • Email halo effect:

    In additional to Direct Mail marketing. MaxDecisions is able to match over 40% of responders with email addresses to deliver email campaigns to further enhance the response rate and cost per funded loan KPI. Our email campaign platform is able to track accurate open and click through rates in real time and gives our client a channel to keep constant contact with their customers.


After 4 direct mail campaigns. Our client in California deployed more loans in the first quarter of 2017 than they did in all of 2016.

They find that Direct Mail generated customers has higher credit quality and in better income situation than other marketing channels. In addition, these direct mail customers are likely to respond to outbound phone calls. They generally have a higher conversion rate that customers from other marketing channels. Direct mail as a organic marketing channel has now become a the marketing channel our client come to rely on for quality and high performing customers.

By the numbers:

  • Reduced cost per funded loan by 53%
  • Increase conversion rate by 50%
  • Lowered the risk of default by 45%
  • Increase funding volume by 400%+ YoY
  • Funded Loan [Before & After Direct Mail Channel]
  • Default Rates (%)

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