Market
ID designed and developed an internal segmentation capability that classifies
your households into six (for credit unions) or seven groups (for banks and
thrifts), based on the actual products and balances held at the institution.
How well do you understand the households that support your business?
Our analysis of customer or member households starts with
a download of all account files from an MCIF or individual application files.
These address records are geocoded (append a census tract identifier to each
member address) in order to organize the data geographically for mapping and
table development. We conduct this processing for our clients and provide specifications
for all file extracts.
If these records have a household identifier, we organize
the data by household rather than account. If an MCIF is not available, we organize
the records into households by matching common characteristics such as name,
address and tax identification number. Following development of this household
database, we evaluate many of their characteristics including the following:
Market
ID designed and developed an internal segmentation capability that classifies
your households into six (for credit unions) or seven groups (for banks and
thrifts), based on the actual products and balances held at the institution.
Segmentation quickly identifies the major deposit and loan
contributors, multiple product users and unproductive households. Our analysis
identifies areas of strength and weakness compared to your peers or your strategies.
Since every one of your households is classified and coded, this improved method
of organizing household files leads directly to product marketing opportunities
and retention priorities.
Once every household record is coded, the analysis can
be used to evaluate branches, map primary segments or compare markets. These
segments also are examined by customer age and product use.
One of the benefits of using an internal segmentation system
is the ability to measure the migration of customers or members to more profitable
segment classifications. Market ID measures the effectiveness of marketing and
branch sales efforts by tracking the retention or loss of valued households
and their migration to other segments. This same concept is used to monitor
changes in the segment composition of branches.
Our development of a segment migration database includes
creation of a migration matrix as a visual enhancement to accompany our analysis
of the following household patterns.
Market ID can work with your profitability calculations
or develop estimates based on our proprietary methodology. Once these profitability
calculations are completed, individual accounts are coded and additional analysis
is undertaken. Profitability is added to the segmentation analysis to determine
profitability per household for each segment. Geographic analysis also is enhanced
by providing aggregate or per household profitability for any level of geography
required by the client.
These profitability factors are easily mapped to depict
aggregate or average household profitability by census tract or other defined
geographic area.
Household product use can be examined by the attributes
of these users to develop list selection criteria or to determine marketing
strategies. User households can be depicted geographically, associated with
segments or delivery channel users, examined by age or organized in a variety
of other ways. Market ID provides the data management but also provides a written
analysis of the findings along with tabular exhibits and maps of geographically
referenced data.
We also have the ability to perform many standard MCIF functions such as balance
stratification, cross-selling ratios and product combination reporting.