Meeting Summary: Performance Analysis and Strategy Adjustments

Analysis of Approval and Fund Rates

Previous Week's Performance (June)

  • Negative Correlation: Last week showed a negative correlation between approval rate and fund rate, which is unusual.

    • Approval rate increased from 16.8% to 16.9% up to 18.8% (almost 20%).

    • Fund rate decreased despite a rise in conditional approvals (an extra 73).73).</p></li></ul></li><li><p><strong>ConfusionAroundFundRateDecrease:</strong>There′suncertaintyastowhythefundratedecreasedwhenapprovalratesincreased.</p><ul><li><p>Typically,anincreaseinpre−approvalsorapprovalsshouldleadtoariseinfundrates.</p></li><li><p>Optimizationcanonlybedonetowardsapprovalrate,notfundrate.</p></li></ul></li></ul><h5collapsed="false"seolevelmigrated="true">QuestionsRaised:</h5><ul><li><p>Didpre−approvedindividualsfailtorespondtoemailsorcompletetheprocess?</p></li><li><p>Istherealagwhereapprovalsfromoneweektranslatetofundedloansinthefollowingweek?</p></li></ul><h4collapsed="false"seolevelmigrated="true">CurrentWeek′sPerformance(June9−11)</h4><ul><li><p><strong>PositiveCorrelation:</strong>Thisweekshowsapositivecorrelationbetweenapprovalratesandfundrates.</p><ul><li><p>Botharearound1873).73).</p></li></ul></li><li><p><strong>Confusion Around Fund Rate Decrease:</strong> There's uncertainty as to why the fund rate decreased when approval rates increased.</p><ul><li><p>Typically, an increase in pre-approvals or approvals should lead to a rise in fund rates.</p></li><li><p>Optimization can only be done towards approval rate, not fund rate.</p></li></ul></li></ul><h5 collapsed="false" seolevelmigrated="true">Questions Raised:</h5><ul><li><p>Did pre-approved individuals fail to respond to emails or complete the process?</p></li><li><p>Is there a lag where approvals from one week translate to funded loans in the following week?</p></li></ul><h4 collapsed="false" seolevelmigrated="true">Current Week's Performance (June 9-11 )</h4><ul><li><p><strong>Positive Correlation:</strong> This week shows a positive correlation between approval rates and fund rates.</p><ul><li><p>Both are around 18%.</p></li></ul></li><li><p><strong>Inconsistency:</strong> Compared to previous weeks, last week's data is inconsistent.</p><ul><li><p>Three weeks ago: 16.9% approval, 16.6% fund rate.</p></li><li><p>This week: Approximately 18% approval and fund rate.</p></li><li><p>Last week: Almost 19% approval but only 14.7% fund rate.</p></li></ul></li></ul><h5 collapsed="false" seolevelmigrated="true">Possible Explanations:</h5><ul><li><p>Customers may take several days (up to eight) to complete their applications due to documentation requirements.</p></li><li><p>Some approved applicants may drop off and not respond.</p></li></ul><h4 collapsed="false" seolevelmigrated="true">Lag Effect and Stabilization</h4><ul><li><p>If there is a lag, an additional week is needed to stabilize the data.</p></li><li><p>A two-week observation period provides a more accurate picture compared to a one-week period.</p></li></ul><h4 collapsed="false" seolevelmigrated="true">Funded by Media Performance</h4><ul><li><p>Funded by media increased this week, surpassing the previous period (June 19-25).</p><ul><li><p>It reached 19 compared to 18 previously.</p></li></ul></li><li><p>Current trend indicates a potential of 19 to 20+ funded loans if the fund rate remains healthy and media efforts continue.</p></li></ul><h4 collapsed="false" seolevelmigrated="true">Impact on Cost Per New Loan</h4><ul><li><p>The cost per new loan was negatively affected last week due to the inverse correlation between approval and fund rates.</p></li></ul><h4 collapsed="false" seolevelmigrated="true">Media Channel Analysis</h4><ul><li><p>Media's contribution to funded loans remained constant.</p><ul><li><p>May 26 - June 1: 15 out of 60 (25%).</p></li><li><p>Following week: 19 out of 64 (approximately 25%).</p></li></ul></li><li><p>The issue likely lies outside media channels.</p><ul><li><p>Further insights from other channels (organic, direct) could provide clarity.</p></li></ul></li></ul><h4 collapsed="false" seolevelmigrated="true">Lead Generation</h4><ul><li><p>Lead buys started on Monday as a new channel.</p></li><li><p>This will be added to the MTA (Multi-Touch Attribution) dashboard.</p></li><li><p>Similar to NHCash, but MTA has an indefinite look-back period.</p></li></ul><h4 collapsed="false" seolevelmigrated="true">Google and Facebook Performance</h4><ul><li><p>Google's fund rate was 18.3% last week, and Facebook's was 28%.</p></li><li><p>The overall drop to 14.7% was due to underperformance in other channels (organic, Bing).</p></li><li><p>Paid media is effectively driving fund rates.</p></li></ul><h4 collapsed="false" seolevelmigrated="true">New States Launched</h4><ul><li><p>New states launched this week: Indiana, Michigan, Tennessee, Arizona, Arkansas, South Carolina.</p></li><li><p>Another wave of state launches is planned before the weekend.</p></li><li><p>Performance will be reviewed on Monday to assess the impact of these new states.</p></li></ul><h5 collapsed="false" seolevelmigrated="true">Future Plans:</h5><ul><li><p>If successful, a third wave will be launched before the weekend.</p></li><li><p>If all goes well, all states will adopt the new optimization format by next week.</p></li><li><p>Budget split will be recalibrated, focusing on high-converting states.</p></li></ul><h5 collapsed="false" seolevelmigrated="true">State-Specific Considerations:</h5><ul><li><p>Discuss the strategy for states like Hawaii, which had minimal conversions.</p></li><li><p>Consider reallocating budget from poorly performing states to better ones.</p></li></ul><h4 collapsed="false" seolevelmigrated="true">Nick's Request</h4><ul><li><p>Nick wants a detailed breakdown of campaign adjustments, including:</p><ul><li><p>States targeted.</p></li><li><p>Adjustments to pre-approval values.</p></li></ul></li><li><p>This information is needed for his review.</p></li></ul><h4 collapsed="false" seolevelmigrated="true">Line of Credit Performance</h4><ul><li><p>Line of credit campaigns are delivering as expected.</p></li><li><p>CPAs (Cost Per Acquisition) are healthy.</p></li><li><p>Ohio is contributing significantly.</p></li></ul><h5 collapsed="false" seolevelmigrated="true">Observations:</h5><ul><li><p>Hawaii showed more conversions than usual.</p></li><li><p>The maximum spend is around2,000toto2,500$$ per week based on the optimized share of search.

    • If demand increases, the budget can be fully utilized.

    Optimization and Budget Allocation:

    • The media spend is already optimized per state.

    • New states may require a learning period to assess demand and allocate budget accordingly.

    Organic Traffic Reporting

    • Tyler is working on separating direct versus organic traffic in reporting.

    • He needs to parse the data to accurately differentiate between the two.

    • The data exists; it's a matter of how to slice it for viewing.

    Action Items

    • Complete and send the change document.

    • The third wave of state launches will occur tomorrow.

    • By next week, there should be two weeks' worth of data to analyze performance.

    • Upcoming tasks include:

      • New wave of states coming in, requiring attention.