Data Mining On the Fly
Increasing Activation Rates
"Historically telemarketing activation rates have been lower than with direct mail," says Branda. Predictive modeling has helped improve this in combination with cross-selling account enhancements and other fee services such as Partners Rewards. This program allows members to earn free and discounted travel on any airline with no blackout dates.
According to Branda, telemarketing has proved to be an effective selling vehicle because it facilitates the ability to interact with the customer in a live conversation. The dynamic nature of the channel facilitates rapid cycle testing and market research.
Modeling on the Fly
A new layer to the data mining mix is real-time modeling with FutureCall.
"We have a very different approach to telemarketing from most other credit-card companies," says Branda. "We view telemarketing as a good way to build balance transfers and accounts. With FutureCall, we put into place some very flexible modeling techniques to be able to do that. Basically we're doing real-time modeling on the fly, which enables us to identify people who are profitable. We then find look-alike prospects based on our actual results during the first few days of the campaign."
FutureCall uses its TactiCall strategy to achieve this objective. Using the prescreened, modeled and targeted data that Partners First supplies, reps begin calling the prospects in a random order. Once enough records have been called, FutureCall analyzes response data against all data in the file. Usually, FutureCall has enough responses to begin this analysis in the first 100 to 500 hours of the campaign.
Next FutureCall's analysts create a model based on Partners First's marketing objectives, whether to maximize balance transfers, response, or "contactability," a model that predicts the likelihood of reaching prospects based on those who have been reached successfully. The model will differ widely depending on Partners First's objectives for the campaign. Explains Branda, "If you want to maximize balances, you may trade off a little bit on response."