Segmentation Applications in Banking - Data Mining Techniques in CRM: Inside Customer Segmentation - page 262

• Their high payments to balance ratio and frequency of full payments suggest a
transactor behavior.
Segment Size
20%
Marketing Tips
• Rewards and incentives (bonus points, rebates credited to their account) to
motivate them to further increase their purchases; these rewards should be
tailored to their purchase profile which was identified in the segmentation of
purchasing habits.
• Candidates for product switch to the type of card that matches their purchasing
preferences as revealed in the segmentation of purchasing habits.
Segment 4: Installment Buyers
Behavioral Profile
• Relatively low purchases.
• Their spending is almost exclusively on (old?) installments.
• Moderate balances.
Segment Size
18%
Marketing Tips
Incentives to start using their card for new spending. They could be included in a
reactivation campaign.
Segment 5: Dormant Customers
Behavioral Profile
• Lowest purchases and cash advance usage.
• Lowest ratio of balance to credit limit.
• Insignificant (remnant?) balances.
Segment Size
15%