Data Mining On the Fly
It wasn't too long ago that telemarketers could boast about running profitable campaigns that involved setting up a few phone lines and working their way through the telephone book.
Those days are over. As call volume increased, so did consumer backlash. The Direct Marketing Association's Telephone Preference Service ballooned, and a total of eight states have state-wide do-not-call lists on the books.
Marketers have fewer records to work with, but now those records are treated as a starting point. Instead of calling blindly, telemarketers are among the most technologically advanced of marketers. Data mining techniques allow them to call those who are likely to respond, minimizing unwanted interruptions and maximizing response.
Technology has lifted response, if not to the lofty rates of telemarketing's salad days, then enough to keep programs in the black. So if the old ways are finished, good riddance. The new high-tech methods are here.
Partners First had a mandate at its inception: to use advanced analytical techniques to manage and grow its credit card portfolio.
The tools that the Baltimore-based card marketer had at its disposal were the same as most others': primarily telemarketing and direct mail. But instead of conducting business as usual, Partners First enhanced its efforts with a multi-level data mining program that turned its outbound telemarketing program into a technological tour de force.
"We believe that data mining is the future of telemarketing," says Tony Branda, director of marketing management at Partners First. "We use the analytics to improve our targeting effectiveness using both internally developed models and models at FutureCall," its Colorado Springs outsourcing partner.
By calling smarter with a multi-level modeling method, Partners First has slashed its customer acquisition costs by 50 percent.
A Card Marketer Emerges
Partners First's resources are solely focused on marketing and managing credit cards, and this dedication enables it to market more effectively.