After the collapse of First Republic and Silicon Valley Bank earlier this year, banks have had an increased focus on growing deposit relationships and volumes. Enigma is helping banks on this front, providing data to improve their prospecting efforts and win new customers.
Specifically, Enigma helps banks target the businesses that are most likely to convert at that given point in time. Enigma does this by providing prospects that fit a bank’s ideal customer profile (ICP) and visibility into which businesses may be experiencing life cycle events that makes them more likely to want to change banking relationships (e.g. a business that just opened a new store).
For example, one bank wanted to reach businesses that met the following criteria:
While the specifics of the targeting criteria changes from bank to bank, Enigma data is helping banks more efficiently reach their desired targets.
Below, we answer the question of just how much our data is working its magic by diving into real results.
Methodology: With the help of marketing agencies, we asked bank and payments provider partners to A/B test the impact of using Enigma data in their sales and marketing campaigns. The test group was the set of prospects they generated using Enigma data. The control group was a different sample of prospects without the benefit of Enigma data, generated from the more traditional business data sources. They then measured the number of successful sign-ups (conversions) per dollar spent for both samples.
The marketing campaigns were all omnichannel, covering both direct mail and online advertising. Most of the campaigns also featured some direct sales outreach to top prospects.
This A/B testing was conducted over the past 18 months, spanning several different quarterly growth campaigns.
On average, banks leveraging Enigma data saw a nearly 1.4x increase in conversion (new accounts created) compared to a control group that used traditional data sources.
Gross lift measures the uptick in total accounts created using Enigma leads versus leads from other sources.
For example, if we have the following conversion rates (% of accounts created out of total leads that were sent mail):
This would imply:
If you are a bank focused on efficient growth, these results indicate that you could grow your customer base by spending 1-2x less using the same sales and marketing spend.
As we continue to receive A/B test results, we will update this blog series.
Read about similar outcomes in a recent case study, or reach out to our team to hear firsthand how our data is helping payments companies grow merchant accounts.