The relationship between number of retail-credit accounts and response rates

Show simple item record

dc.contributor.author Jordaan, Yolanda
dc.contributor.author Kotze, Theuns G.
dc.contributor.author Louw, H.
dc.date.accessioned 2007-05-29T09:26:36Z
dc.date.available 2007-05-29T09:26:36Z
dc.date.issued 2004-09
dc.description.abstract In South Africa, some of the bigger credit issuers operating in the direct marketing environment, specifically non-bank, personal finance companies, have complained that they are not seeing the return-on-investment they have come to expect from their direct mail campaigns, due to poor direct mail response rates. Low response rates have been encountered even though the market segment in which these companies are operating, has shown growing demand. With an increase in mailing costs and fierce competition in the direct marketing industry, lenders are constantly looking for ways to improve the effectiveness and profitability of their mailing campaigns. The approach followed was to analyse the response rate of a mailing campaign, and through regression analysis, determine the relationship between the number of active retailcredit accounts held and response rates. This was done against the backdrop of segmentation opportunities and an increasingly credit-active South African population. The results indicate that, in the personal finance and loan marketing environment, there is a positive linear relationship between the number of active retail accounts held by prospective clients and the response rates to credit-related marketing offers. Finally, the implications for direct marketing companies are discussed, limitations presented and future research opportunities outlined. en
dc.format.extent 202776 bytes
dc.format.mimetype application/pdf
dc.identifier.citation Jordaan, Y, Kotze, TG & Louw, H 2004,'The relationship between number of retail-credit accounts and response rates', South African Journal of Business Management, vol. 35, issue 3, pp. 41-46. [http://www.journals.co.za/ej/ejour_busman.html] en
dc.identifier.issn 0378-9098
dc.identifier.uri http://hdl.handle.net/2263/2549
dc.language.iso en en
dc.publisher Association for Professional Managers in South Africa en
dc.rights Association for Professional Managers in South Africa en
dc.subject Return on investment (ROI) en
dc.subject Direct mail campaigns en
dc.subject Mailing campaigns en
dc.subject Retail-credit accounts en
dc.subject Response rates en
dc.subject.lcsh Direct marketing -- South Africa
dc.subject.lcsh Advertising, Direct-mail -- South Africa
dc.title The relationship between number of retail-credit accounts and response rates en
dc.type Article en


Files in this item

This item appears in the following Collection(s)

Show simple item record