Segmentation Applications in Banking - Data Mining Techniques in CRM: Inside Customer Segmentation - page 261

Segment Size
21%
Marketing Tips
They could take advantage of a possible increase in their credit limit, provided, of
course, that they have good credit risk scores.
Segment 2: Cash Advance Users
Behavioral Profile
• Highest cash advance usage in terms of frequency and amount of cash with-
drawals.
• Few purchases.
• 85% of their total card spending is attributed to cash advances.
• Highest monthly balance amounts.
• They also present high limit usage.
• Like ''Revolvers,'' they tend to carry past balances and pay only a part of their
monthly balances as indicated by the low frequency of full payments and the
similarly low ratio of payments to balance.
Segment Size
15%
Marketing Tips
• New product development: a card with additional benefits for cash advance
usage
• Possible prospects for personal loan products
• They could take advantage of a possible increase in their credit limit, provided,
of course, that they have good credit risk scores.
Segment 3: Heavy Buyers - Transactors
Behavioral Profile
• Highest purchases, in terms of frequency and volume.
• One-off as well as installment purchases.
• Moderate balances and limit usage.
• Their spending is almost exclusively purchases since their cash advance usage is
low.