- 10/24/2012 2:30:34 PM
Customer name and address information is required to overlay third party data. In this case compliance with regulations such as Fair Credit Reporting Act and FACTA is required if we are using credit bureau data. Also due to prescreening rules we would only work with depersonalized data until after we determine the subset of consumers who are being promoted an offer. This does not typically apply to demographic data.
- 10/24/2012 2:16:01 PM
– Generic ATM offers are no different than signage at a branch where the
monthly specials could be advertised on a banner or brochure. In my experience
these types of offers can increase inquiry volume from customers but actual
purchases are low. Offers can be tailored to the consumer after the card swipe
and they are in authenticated space. This type of tactic generates high
conversion to purchase but may not generate significant traffic. Our
recommendation to clients is to always find balance with mass and generic
offers and targeted direct marketing. Also, attrition is a challenge with
generic offers as consumers may open accounts just for to take advantage of the
special offer and hence the importance of onboarding and early engagement is
even more critical in such cases.
- 10/24/2012 1:40:35 PM
Sandeep, when I use my bank's ATM, I'm often greeted by a generic message "open an X account and receive a $20 gift card to Target" or some such (by generic, I mean, this is the message anybody sees upon pulling up to the machine, not after a card swipe). I've always been curious whether such offers really work 1) to get people to open accounts and, more importantly as you point, 2) to gain their loyality and secure future use. Do you have any thoughts to share given your experience and what you've learned about consumer banking behavior?
- 10/24/2012 1:37:18 PM
@SandeepKharidhi, thanks for jumping in here to explain more about how Harland Clarke uses data (and thanks for sharing your story to start with!). I have a question based on what you've said here regarding the use of third-party data from credit bureaus and demographics providers. Is this data also depersonalized? And, if so, do you receive it depersonalized or are you depersonalizing for your analytics use?
- 10/24/2012 1:14:14 PM
The first few months of a customer's lifecycle with any brand is critical especially within Financial Services. Our own research and experience shows that the first 90 to 120 days after account opening is an opportune time to build a strong and lasting relationship with the consumer. There are several studies conducted by other organizations that confirm this trend within Financial Services. First year attrition within banking is very high compared to other industries and can be curbed by taking simple but effective steps early on in the life cycle. Harland Clarke's recommendation is to focus on establishing engagement services early on – online banking, bill pay, direct deposit, check order, debit card activation and the like. Our experience shows that such services make the relationship sticky and points the relationship to be the "primary" one for the household.
- 10/24/2012 1:03:45 PM
Cordell, as Beth pointed out Harland Clarke's industry database is depersonalized in nature and does not contain any personally identifiable information. The strength of our Stratics predictive models are based on behavioral targeting. We also license third party data from credit bureaus and demographics providers on behalf our clients. Hope this helps. Appreciate your interest. Thank you
- by SethBreedlove, Data Doctor
- 10/21/2012 9:49:23 PM
The use of analytics based on actual behavior vs. self reported is such an advantage because then the information is objective vs. subjective. I would love to access to this information. Would I be enlightend, appalled, ammused or angry? Having access to our own data could actually help us make better decisions.
- by Cordell, Blogger
- 10/20/2012 9:12:22 PM
As long as it's depersonalized it's okay. But if they're predicting someone's propensity to purchase something based on attributes about them from HC's customer databases then they're a data repository and they have different rules.
If their propensity score is based on information gathered from the customer and not stored in their customer files then it's okay too. The other safe harbor is if they get permission from the consumer to use the data but that's a hurdle most marketing groups won't want to have to meet.