In a recent interview with Credit Union Management, I shared a bit of my perspective on the importance of data-driven strategies for today’s credit card issuers. In particular, reporter Karen Bankston and I discussed three approaches to business intelligence credit unions and community banks can pursue in the name of optimizing their credit card marketing and management:

The Macro Approach

Using topline data on aggregate balances, transaction volume and revenue from interest and fees, this approach provides an overall picture of portfolio health. The average spend per active card, for example, is a useful measure of cardmember engagement. Rank-ordering accounts by profitability and engagement can lay the foundation for cardmember segmentation – a critical first step for any data-driven marketing strategy.

The Loyalty Approach

Rewards data provides a window on card usage and member preferences. It also facilitates liability management, as the rewards program is one of the largest expenses in running a card portfolio.

continue reading »