Data Mining to Identify New Markets (1,176 words)
If it started to look like a problem was developing for a certain member, DTCU could offer individual counseling services in-house, refer them to an outside agency or offer alternate payment plans.
"Another way we're using the data is running a cross-sell model with part of the IBM solution," adds Thompson. Through EZMart, DTCU has been able to run segmentation models on its customer base to see which segments should receive specific promotions.
Predictive modeling also helps determine in what sequence people get certain offers, based on answers to questions such as, "What products do people get initially"—say a checking account, an auto loan or a credit card? Adds Thompson, "We have 107 scenarios in test right now. It's a very complicated algorithm, but with great potential."
To help it in cross-selling certificates of deposit, individual retirement accounts and other investment vehicles, DTCU is using Unica Corp.'s Affinium predictive modeling suite to determine which product information and promotions are most likely to meet members' needs.
The next phase of the program implementation will allow DTCU to offer truly customized one-to-one service to its members. "IBM's e-commerce folks will be in soon to talk to our call center reps about how to use this system," explains Thompson. "Basically, what will be able to happen is when a customer calls in, and his or her number and information pops up on screen, a cross-sell screen with relevant product offers will pop up, too."
As an example, Thompson says, "If a client's auto loan is nearly paid off, we'll know that he had a Chevy Suburban and could work out a promotional arrangement with a local Chevy dealer."
In the future, Dallas Teachers Credit Union also plans to use demographics and traffic patterns to determine the placement of billboards and ATMs.