NEWS on Payments

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Unlocking the Power of Your Data

Sep 01, 2015
Agnes Nasso, marketing officer, TCM Bank, N.A.
Are you getting the most value from your cardholder data? By analyzing information on your credit card customers that is readily available, you may spot opportunities to improve retention and increase your bank’s share of wallet. TCM Bank, N.A. has found that insights resulting from cardholder data analysis can lead to effective marketing tactics like these:  

•    Tailoring products or promotions to lifestyle changes. Is the customer getting married, buying a house, bringing home a new baby? Consider maintaining a library of promotional letters or emails that you can tap for such occasions. This tactic can also be used for a starter account cardholder with a low (or no) credit score. If the cardholders continue to make timely payments and keep their account in good standing, you can recognize their sound financial behavior with a lower APR or a higher credit line later down the road. Such proactive “rewards” in turn will build loyalty to your card.

•    Tailoring products or promotions to cardholder account behavior. If the cardholder is a “revolver” who typically carries a balance, a lower APR may promote usage more effectively than offering that customer a robust rewards points program.

•    Offering a credit line increase to shift more spending to your credit card. There are data elements available for purchase in the market that will let you know if your customers are spending more on other credit cards. Knowing this can help you create a promotional campaign to help shift that spending to your card program, such as offering a credit line increase.  

•    Developing rewards to incentivize behavior and build loyalty. Customers with low card usage could be encouraged to use your bank's card with bonus reward points or a credit on their account for purchases made using your card during a promotional period.  

More time spent mining your cardholder information can pay off in more powerful marketing programs.

Visit www.icbabancard.org for more information.