Nordax Finans Case Study
Nordax Finans is a newly-started private
equity-backed Swedish company
providing unsecured loans to the Scandinavian market. According
Lagerqvist, co-founder of the company, the original and successful
approach was similar to the approach the team had utilized
when they were
working for GE Capital and Citibank.
In March, 2004, Nordax became determined to further increase
of their direct mail campaigns to prospective customers. During
the start up
period the company had been looking for direct mail test optimization
methods that could facilitate this improvement.
After months of research, Nordax heard about the merits of
use of multivariate testing for advertising. Nordax's management
use this methodology for direct mail campaign optimization.
In only four months Nordax was reporting outrageous increases
response rates. The direct mail response rate had jumped to
450%, while dramatically improving portfolio volume, credit
The bottom line is that Nordax's loan portfolio grew from
100 to 150 million
dollars in four months, while spending only a third of their
At the same time, all other indices connected with their business
as well. Perhaps more importantly, Nordax management gained
insight into the psychology behind their customers' actual
behavior -- even
the things that turn customers off. The necessity of optimizing
potential through limited testing is particularly significant
in a market with a
limited population such as in Sweden.
"OfferMaxima's methodology radically changed our decision-making
from assumption-based to scientific testing," reports
Mats. "Now we are able
to accurately predict and maximize not only our entire portfolio
volume, but the
overall quality of the portfolio and profitability as well.
methodology is the secret weapon that gives Nordax a competitive
versus the other players in Scandinavia."