Background:
Increasing Liquidity through Certificates of Deposits
MSU Federal Credit Union, a $7.3 billion asset credit union with over 340,000 members, was looking to provide targeted offers to members to increase investment in certificates of deposit in order to maintain liquidity during this time of rising rates. To achieve this, they turned to Rise Analytics’ Predictive Analytics team for a solution. The Analytics team recommended Rise Analytics’ Next Best Product AI to identify members most likely to respond to marketing efforts around certificates.
Next Best Product AI runs an algorithmic analysis on current members, reviewing the products they currently have, how often they use them, and other personal data on file to identify the products they are most likely to respond positively to in a marketing campaign.
Opportunity:
Testing the Waters
Once a group was identified, MSUFCU decided to run A/B testing in order to assess the effectiveness of the Next Best Product AI. The Rise Analytics predictive model selected a targeted group of approximately 4,000 members to be included in the marketing campaign, Group A. The credit union used their normal selection process to randomly select a second group of 4,000 to be included in a separate marketing campaign, Group B.
Over a 30-day period, members in both groups received emails and a direct mailer promoting the certificate of deposit program. For those members included in either campaign, the marketing they received within MSUFCU’s mobile app was also focused on certificates of deposit. Content was the same for both groups and was sent out simultaneously.
Results:
11 Times the Results with Rise Analytics
MSUFCU was beyond happy with these results. Tim Williams, an Analyst on MSUFCU’s Business Intelligence Team and who uses analytics to help marketing better target members for campaigns, said “The Predictive model performed way better than a random group, and I think above average on a targeted group.” He indicated that the MSUFCU would continue to use Next Best Product AI to look for opportunities to increase auto loans and credit card usage among their members. “We are definitely looking to move forward and continue to integrate this with our marketing programs.”
“The Next Best Product AI performed way better than on a random group, and I think above average on a targeted group.” Data Analyst, MSU Federal Credit Union
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About Rise Analytics
Rise Analytics empowers credit unions with cutting-edge analytics, AI and machine learning to turn data into actionable strategies. With deep industry expertise and innovative data solutions, Rise Analytics helps credit unions make smarter decisions, drive meaningful outcomes and achieve long-term success. Their powerful combination of technology and advisory services ensures insight leads to impact. Learn more at RiseAnalytics.com