Data

A Billion-Dollar Bank Takes Steps to Retain Customers
May 1, 2004

BankFinancial, a $1.6 billion financial institution, is no stranger to predictive marketing. It has been reaping the benefits of it for some seven years. Recently, however, BankFinancial executives wanted to be more proactive with efforts to retain the approximately 1.5 percent of BankFinancial customers who left the bank each year, but felt limited in their ability to mix data sources and segment effectively. They enlisted SPSS’s recently released PredictiveMarketing software, which enables the integration of data sources, such as records at the transactional level, account level, and even customer and household level. Staff now can “slice and dice” data in many ways. “It’s like

Database Special Report: Beyond the Black Box
May 1, 2004

Segmentation Is More Than a Tactic—It’s Also a Strategy. Using statistical techniques to segment customers is an effective tactic, but how you market to these segments is a strategy. Rather than operating in a vacuum, statisticians and marketers can work together to not only predict behavior, but change it. For many direct marketers, state-of-the-art segmentation means using the database to determine, with the greatest possible accuracy, which customers will respond to a given offer. They often point with pride to a statistical technique that selects the best 20,000 names from the database. These modeling techniques typically are employed in a “black box” fashion,

Data Driven
May 1, 2004

A robust, central database drives GreenPoint’s profitability in the banking sector Pareto’s Principle holds that 80 percent of a company’s business is generated by 20 percent of its customers. In banking, the ratio is more like 90/10 or even 95/5, points out Bob Lord, vice president of strategic marketing services at Harte-Hanks. This makes identifying, retaining and maximizing the profit potential of this top performing tier of customers essential to a bank’s overall profitability. Banking is a highly competitive financial services sector that has witnessed a great deal of merger and acquisition activity in the past 10 years. This flurry of activity was in part responsible

Data on Demand
May 1, 2004

Two New Data Management Systems Help Miles Kimball Get Nimble. Miles Kimball, a multi-title catalog company in Oshkosh, Wis., has employed a two-pronged technological approach that gives it a clearer, real-time vision of the company’s front- and back-end operations. Armed with these tools, managers now can make business decisions—on everything from marketing campaigns to staff scheduling—by using data available on their own desktop computers. Managers no longer have to ask other departments such as IT for lengthy reports that often can take days to generate. Instead, a question, such as how many returns it’s getting on one particular SKU listed in the latest catalog

Surrounding a Market
March 1, 2004

A Powerful Blend of Direct Marketing Science and Market Research Drives The Hartford’s AARP Insurance Program. Every seven minutes, a U.S. adult turns 50. For AARP, a nonprofit membership organization that advocates on behalf of Americans age 50 and older, that translates into a little more than 200 new potential members a day. And for The Hartford, a 190-year-old investment management and insurance firm based in Hartford, CT, it also means a steady influx of new names for prospecting. Due to The Hartford’s relationship with AARP as the exclusive provider of discounted automobile (and homeowner) insurance to the association’s members, it has more of

Halt Customer Defection
March 1, 2004

Keep Your Customers Using Analytic Models Imagine being able to predict which of your customers will stay your customers. To achieve this heightened understanding of customer behavior, many marketers are turning to modeling. When performed properly, modeling can help organizations predict which customers will remain and which ones will defect—or churn. An effective modeling approach takes into consideration a wealth of information from a variety of sources, and can help marketers determine the best allocation of their marketing dollars to improve ROI. Defection erodes your customer base and occurs with the cancellation of an existing contract, non-renewal at the termination date of a contract,

Outsource Solutions: Database Marketing
March 1, 2004

What You Need to Know Before You Append Alone, the transactional data in your customer database only will tell you how recently a customer made a purchase, how frequently he or she buys from you, and his or her dollar value to your company. Appending psycho-demographic data to your house file gives you a more robust database. With a more complete representation of who your customers are, you can better tailor your offers and increase response. When appending general data elements, such as age, income, home ownership or presence of children, contact a minimum of three data providers, recommends Bernice Grossman, president

B-to-B Special Report: Data-Driven Decision Making
March 1, 2004

How Data Mining Can Help You Dig the Nuggets Out of Your Business Imagine having a rare and valuable art collection and keeping it locked in the closet. Now think of data practices. Same situation. Marketers spend millions of dollars a year to gather and store large quantities of data that are never seen by the human eye. Other companies spend a great deal of money to run reports, graphics and analysis to show to marketing and sales personnel, but are unable to transform these expenditures into day-to-day actions. Data is merely words and numbers without meaningful actions attached. That is why data mining—extracting

Ideas You Can Take to the Bank!: Effective Communication
February 1, 2004

Never before have marketers had such a wealth of marketing tools at their disposal: unique information sources, innovative database platforms, advanced analytics and multichannel delivery vehicles. With such a variety of tools, how should marketers leverage their database to reveal new opportunities to gain optimal results? You can maximize your ROI by developing a customer contact strategy that answers three key questions: 1) Who should I contact? 2) What channel should I use to contact them? 3) When should I contact them? The answers to these questions are in your database. They represent a contact-strategy plan that uses all the resources in

CRM Special Report: Taking CRM Outside
February 1, 2004

Elements of a Successful Outsourced Solution Outsourcing CRM solutions is a growing phenomenon that is generating a good deal of interest. For the purposes of this article, outsourced CRM solutions are defined as marketing automation applications that may include: hosted marketing databases, campaign management, lead generation/management, reporting and/or data mining. These applications may be hosted singly or in a turnkey solution. The benefits of outsourcing a CRM solution can be substantial, both in terms of revenue enhancement and cost reduction. Typically, marketers see benefits accrue slowly in the first few months after implementation, as the new technology and processes are thoroughly learned and integrated