Credit cards are starting to rethink their strategies with a strong focus on segmentation"Wanda Goldwag also believes the credit card market has to completely rethink its approach to consumer marketing. She thinks the current climate will lead to mailing volumes shrinking as more emphasis is placed on targeting relevant messaging and tailored propositions.
She argues: "I welcome any move that creates a greater sense of responsibility among marketers and an end to the mass mailing techniques we associate with this market.
"Typical approaches like targeting high risk prospects who already have six, seven or eight credit cards or repeatedly mailing people month after month who never respond aren't smart and have always been at odds with industry best practice."
Goldwag reckons that while analysis and segmentation techniques will no doubt be employed going forward, data will also become an increasingly strategic tool. "The 'one message fits all' approach is no longer fit for purpose," she says. "In turn all the marketing metrics against which this industry measures campaign success will have to be reviewed and factors like customer value, attrition and long-term profitability will have a much bigger role to play."
Data is fast becoming increasingly sophisticated and those credit card marketers who are able to leverage it effectively will certainly reap the rewards.
After all, as they come under increasing pressure from their financial directors to prove return on investment and ensure every penny that goes into every campaign counts, the clever use of data will aid this process."
Percision Marketing - July 2008