100-150 word response to the below response:
As the president of a credit card company, my proposed marketing strategy would be to market our credit card to different stages of a human lifecycle. By firstly building a customer database based on internal data, “a repository of customer names derived from records about the customer that the firm keeps”, I will be able to see many useful variables such as age, income, and home value, that can show me our current demographics (Zahay-Blatz et al., 2018).
My marketing goal is to increase spending and overall usage of my credit card. In order to achieve this goal, I will look at the varying demographics. My plan to achieve my goal is to segment the demographics into age ranges: 18-30, 31-50, 50+. These segments are subject to change with the analysis of further data points. Based on the simple regression analysis of age versus dollar amount expected to charge, this shows me that for a unit change in age there is a 17.217 change in the amount a person is expected to charge on a credit card. Therefore, I would position my marketing copy to reflect the importance of using a credit card to start building credit at a young age. Once you establish sound credit, you can market the value of loans – home loans, car loans, etc. that can also increase your credit score if taught how to properly use a credit card, which could also be a segment of my marketing efforts, (blogs on how to build credit, how to use a credit card, things that impact your credit score, etc.). For the next older age segments, I would look at income, open lines of credit such as home loans, car loans, etc., credit score, and sex. With these variables, I can create promotions to males or females with a higher income to utilize our credit card to maximize a point system for X (travel, hotel, etc.). If income and credit score fall in a lower/average range, you can promote low interest rates and possibly late payment forgiveness.
Additional data points I would like to utilize are income, credit score, and gender. I would obtain these variables from my internal customer database. The approach I would take would be the execution of an interactive integrated marketing communications program. “To maximize the benefits of personalized communications, it is critical to have detailed data on who customers are…This allows the firm to segment customers in ways to capitalize on the benefits associated with the personalization of communications” (Peltier et al., 2002a; 2002b). By personalizing marketing messaging and promotions based on the above variables, I think that you can increase spending on our credit card while maintaining great service and transparency. “Zahay and Griffin (2003) researched the database antecedents of personalization and customization and found that [it] impacted customer-based performance metrics (CLV, retention rate, share of wallet, etc.) and ultimately business growth (sales and net income.)” (Zahay et al., 2009).
References
Zahay, D., Spiller, L., & Marold, D. (2018, April). Building the foundation for customer data quality in CRM systems for financial services firms. Building and Maintaining a Customer Database, 1-16.
Zahay, D., Mason, C., &; Schibrowsky, J. (2009). The present and future of IMC and database marketing. International Journal of Integrated Marketing Communications
Peltier, James W., John Schibrowsky, John Davis, and Don Sehultz. Interactive psychographics: cross-selling opportunities in the banking industry. Journal of Advertising Research, Vol. 42 Issue 2, (2002a): 7-22.
Peltier, James W., John Schibrowsky, and Don Sehultz. Leveraging customer information to develop sequential communication strategies: a case study of charitable giving behavior. Journal of Advertising Research, Vol. 42 Issue 4, (2002b): 23-41
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