Case Studies
Cash King Payday Loans
Challenge: Cash King, a payday loan company, came to Money Mailer Direct (MMDRR) wanting to create a successful business to consumer direct mail program. Cash King has over 2,700 locations throughout the United States, as well as over a million customers. They challenged MMDRR to lower the acquisition cost per customer and to increase new customers simultaneously.
Solution: MMDRR switched the client from saturation mailing to a segmentation direct mail program that utilized the top segmentation data in the industry – PRIZM NE. Cash King’s foremost PRIZM clusters were determined by taking Cash King’s existing customer file and appending the PRIZM codes directly to those addresses. After the PRIZM append, MMDR discovered that twenty PRIZM clusters represented over 80% of their customer file. In order to find new customers with the same demographic qualities, MMDR simply needed to mail to those top 20 clusters in the areas around their store locations.
Results: After using the new PRIZM direct mail program, MMDR was able to reduce the cost per customer for Cash King by 65% and the response rates for new customers tripled.