Predicting profitability: finding and keeping the right customers

Article Abstract:

Credit card companies are no longer satisfied with obtaining new customers at any cost. Under the new marketing approach, they are now carefully selecting only quality customers, defined as those individuals who can provide long-term value to the company. They solicit customers based on profitability by creating revenue models at the individual level, which look at such variables as solicitation history, basic demographic/psychographic information, customer data, and credit bureau information. Applying an acquisition strategy that incorporates the revenue factor requires six steps. These are definition of objectives and review of data, organization and translation of data, identification of revenue-related patterns in the data, creation of statistical models or neural networks, validation of data accuracy, and creation of a final report.

Management, Marketing, Credit and debit card industry, Credit card industry, Customer relations

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Debit cards can be convenient -- if you know the rules

Article Abstract:

Debit cards are transaction cards that allow holders to use the money in their checking or savings accounts for pay for their purchases. These cards are increasingly used by consumers at supermarkets, department stores, gas stations and similar establishments. The two types of debit cards are offline cards and ATM-like on-line cards. Although they offer convenience, these cards also have a downside that consumers should be aware of. They can be expensive since many debit card providers charge a monthly or annual fee. In addition, most cards have daily spending and withdrawal limits to restrict the use of stolen cards. Other problems include the difficulty of proving liability for fraud and error, and confusion about the cards on the prompt reporting of problems.

Evaluation, Debit cards

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