Prompt (The question): I’m a senior manager at a large bank. I oversee about 10 products that we provide to our customers. I have about 10 million credit card accounts, but only about 100,000 of these also have an installment loan with us. I’d like to do a solicitation campaign to try to get people who are currently noncustomers (prospects) to sign up for an installment loan. Requirements: Generate a business plan/model that could solve the existing question above. Specify the data and steps you would use to generate the ideal result. State your ideal in a clear and easy-to-understand way. Try your best to make the readers understand and agree with your idea. Please refer to the attached files as examples for the format/expectations of your submission.
Clarifications for the homework: Questions/answers regarding HW1 Clarification: – Wants responses on installment loan solicitations – Can buy data about consumers – Plenty of data from past similar campaigns (a few million solicitations, a couple hundred thousand responses) – But prior solicitations were done on a different population of prospects (very little overlap) Q: I don’t have a large collection of prospects and their data; A: I’ll just give any model you build to a data broker after the model after is built. Q: For the point above, will the broker return a list of prospects for sending out the solicitations? A: Yes, I’ll probably give them a limit, maybe 1 million, and they build the list. Q: Do you get to know the overlap number of people getting the installment loan again from your past campaigns? A: I don’t know but we can explore the overlap if you think it’s important. Q: What data do you have about past solicitations? A: Done them in the past, but all we have is the name, address, who we solicited, and whether they responded. However, we have enough PII to link to 3rd party data Q: For the past campaigns, do you know how many times customers received invitations before they actually decided to take the loan? A: Good question. In general, yes, because we’d see them on multiple past lists. Q: Did you want to get customers within this bank? Or are we trying to get customers from other banks to take the installment loan from our bank? A: I want customers who are not my current customers (these are called prospects), and I don’t care what other banks if any they are with. Q: Do our target customers all come from the USA or come from all over the world? A: Our target will be US customers only.