Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1029541 | Journal of Retailing and Consumer Services | 2009 | 9 Pages |
Abstract
In customer segmentation, a common strategy is to use individual differences as a predictor of future behavior. Recent advances in data management in large financial institutions give an unprecedented and potentially powerful source of data for identifying such differences. We show that spending data can substantially help target the direct marketing of financial products, and constitutes new information, not captured by demographics. In particular, a systematic combination of this independent source and more traditional measures can enhance the predictive power of marketing research and improve the relationship with customers as illustrated in a direct mailing selection method which substantially raises response rates.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Marketing
Authors
Philipp E. Otto, Greg B. Davies, Nick Chater, Henry Stott,