Challenge
One of Poland's leading banks was struggling to attract customers for online loans, despite offering a wide range of products and having a recognizable brand. High advertising costs for all audiences were not yielding results. The application process was too complicated, as customers had to compare many options themselves.
The bank was looking for solutions to increase the number of loan applications without unnecessarily burning through its advertising budget.
Action
- Customer behavior analysis and segmentation
The bank monitored what customers were doing on the bank's website (e.g., what they were viewing, what calculators they were using) and basic demographic data. Users were divided into groups:
- people with regular income without loans
- people looking for a mortgage
- customers with a credit card who needed additional cash
These groups were updated on an ongoing basis as customer data changed.
- Personalized loan offers
Special loan recommendations appeared on the bank's homepage and in online banking. The system itself proposed loans, e.g., cash loans for a specific purpose, account limits, or loans to repay other liabilities. The recommendations took into account whether a given customer was eligible for a loan, so only realistic offers were shown. Importantly, the offers immediately included individually calculated installments and interest rates, which accelerated the customer's decision. - Email campaigns
Customers received emails only with loan offers that matched their group and needs. For example, a young person with savings could receive a mortgage offer with a lower installment, and someone with an active credit card could receive a debt consolidation loan offer. - Notifications in the app
For customers using the bank's mobile app, personalized push notifications were introduced to inform them about dedicated loan offers, e.g., “Check your individual cash loan offer – decision in 15 minutes!”
Results
- The number of online loan applications submitted increased by 25% over the course of a year.
- Advertising costs fell by 18% because the ads were targeted at the right people.
- Customer satisfaction increased by 17%.