Centex Home Equity - Predicting A Need (1,430 words)
Greenbaum adds that having desktop access to the database to perform queries and analysis is another key to successful database marketing. Besides driving marketing campaigns to generate new business, the database helps Centex run "what-if" scenarios for planning new marketing initiatives.
The database also can be used to analyze the performance of individual branch locations to create productivity standards for different marketing campaigns. Reports from the database help keep operations management informed about the latest results of each campaign.
The database even helps Centex assess the strength of the database itself. "We can take a control group, a random sample of the prospect universe," Greenbaum says, "and compare results of this non-modeled group to the results of a target-modeled group. This validates the effectiveness of our database marketing and shows a clear advantage in combining multiple data sources in a flexible data environment.
"This is one of our key marketing advantages," Greenbaum continues. "It enables us to originate new loans at a marketing cost-per-account substantially lower than the industry average."
This story originally appeared in the January 2001 issue of Target Marketing