By using powerful marketing technology (martech) software, like Hadoop, data from disparate sources can be aggregated and analyzed in near real time. That has interesting applications in areas like consumer lending, where an applicant’s credit history and score, number of cards, reason for borrowing, age, employment history and dozens of other factors may come into play in determining the applicant’s value and risk as a borrower. In this edition of Moneyball for Marketing, Lending Club COO & CMO Scott Sanborn joins us to discuss how martech is changing customer acquisition cost, customer lifetime value calculation and customer satisfaction optimization:
Optimal engagement: Scott shares how Lending Club analyzes credit, application and behavioral data from different sources, in real time, to optimize the customer experience and determine the buyer journey to verification. He reveals his martech stack, and the different data buyers are asked for, based purely on the type of device they are using.
Funnel business: “Our whole business is essentially a giant conversion funnel,” says Scott. He explains how website function, marketing channels, credit score and operations process factor in to multiple funnels, and discusses how his core team conducts multiple ongoing tests in order to decrease customer acquisition cost and increase satisfaction.
Say no to the CEO: Using martech “takes some of the subjectivity out of the argument,” says Scott, letting the data make the decision, instead of—for instance—the CEO’s personal opinion. “Make sure you’re measuring the right stuff,” though, the credit risk expert aptly warns.
Scott Sanborn is the COO and CMO of Lending Club, the world’s largest online credit marketplace. Lending Club connects borrowers and investors to transform the banking industry by making credit more affordable and investing more rewarding. Scott is responsible for connecting to Lending Club’s customers through all channels, including advertising, PR, the website, direct marketing, and customer support as well as for managing their customer-facing operations.