Content strategist Jennie Kim lays out the three components of a winning content strategy and...
Investment In Knowledge
Selected at random, 78,000 first-time uni-versity student cardholders received a mailing directing them to a website containing financial education lessons and quizzes; a control group of 3,000 students received standard cardholder information. Wells Fargo then monitored each group’s subsequent card usage and payment performance.
Not only was the direct mail response strong (7 percent), but also nearly all (97 percent) of the respondents, incentivized by a 60-minute phone card, completed the online test. Impressive above all are the results of this ongoing study: the last measurement, taken in 2007, found clear behavioral distinctions between the experimental and control groups.
Among those who completed the education: 42.6 percent were less likely to have late fee and over-limit charges, 42.8 percent were less likely to be 30 days past due (for 60 days past due, this jumped to 55.9 percent), and 26.5 percent kept lower revolving balances. Not that these improvements came from lower card usage: this group spent 32.7 percent more on their cards than the control group. Even those who just reviewed the educational materials have since established better credit histories.
In the case study supporting the findings, Wells Fargo concluded that, “… the Practical Money Skills for Life curriculum boosted loyalty and increased responsible card usage with their customers … enhancing Wells Fargo’s corporate reputation while simultaneously generating long-term revenue.”11
Founded in 1998, Charlotte, N.C.-based LendingTree has a clear mission: to help consumers make smart fiscal decisions for life. To date, the online exchange, which connects consumers with multiple lenders offering various loan and credit products, has closed $185 billion in transactions. The cornerstone of its financial literacy strategy is the Smart Borrower Center, an online resource designed to explain financial concepts and help customers navigate credit, debt and loan transactions.