Case Studies

Channel Expansion

Situation: a leading online lender whose business was exclusively built through affiliate marketing and other digital channels was reliant on an intermediated business model that created a single channel dependency. Convergence Group was engaged to de-risk the business by diversifying acquisition channels, improving the credit quality of the portfolio and accelerating growth.

Solution: Convergence Group developed a comprehensive strategy to test and validate two new alternative channels, direct mail and email – including establishing and implementing the entire supply chain. We also developed a pre-approved credit list management and testing strategy in an effort to attract and originate a higher quality credit prospect.

Result: Direct mail response rates increased by 400% over previous direct mail campaigns and the cost per dollar booked was 60% less than affiliate channels.  Losses were also 58% less than affiliate channels.  Additionally, the accounts required via direct mail have a 20% higher re-borrow rate compared to affiliate generated accounts which is critical to ongoing profitability.