When many people hear the term dormant they think of once active, but now quiet volcanoes. For those scientists that have the difficult job of classifying a volcano as dormant versus extinct, the process can take years. Luckily for credit unions, they don’t need to turn to volcanologists for assistance when analyzing inactive accounts. Finding a means to erupt inactive credit card accounts is a bit easier. Who’s your cardologist? So what is the key in both scenarios – volcano classification and credit card history?
Data! Neither scientists nor credit card analysts will get very far without solid information. Credit union card teams need to analyze as much internal and external data as possible in order to properly segment dormant cardholders before executing strategies to bring them back to life.
We couldn’t agree more with the following statement from CUInsight, “The key to success is identifying which of a portfolio’s dormant credit card accounts offer the greatest potential for reactivation.” In the article “Data-driven strategies wake sleeping credit card accounts,” the analysts have found that dormant credit card account owners generally fall into one of four basic categories:continue reading »