ABA Banking Journal - October 2010 - (Page 26)
tech topics |segmentation tools
Tapping data for that “best next offer”
Suggestions for how to use the thousands of bits of data you have about a customer at just the right time by John ginovsky, contributing editor
uppose you had the ability to deduce, in an automated fashion, that a specific customer’s multiple $10 charges at gas stations meant that that customer drove, not an automobile, but a motorcycle. Wouldn’t the best next product to offer that customer, from both the customer’s and the bank’s standpoints, be motorcycle insurance, or something else—anything but a car loan? That kind of customer segmentation and analytics will be absolutely required going forward. Technological tools coupled with enlightened customer service can build customer relationships and drive profitability. With thousands of bits of information on every
customer in hand, however, the challenge comes in making use of all that information at the precise moment that the customer may be apt to acquire additional products and services. Technology in place today, and in development, can address the challenge of what to offer, when, and at what price. “[A bank] should really take into consideration the entirety of the customer so that it can understand the whole of the customer relationship for pricing. To do that you need a single customer view. You need to understand not only what accounts that client has with you, but the behaviors that customer [has demonstrated,]” says John Ramsey, who is vice-president and director,
26 | ABA BANKING JOURNAL | october 2010
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