Segmentation Applications in Banking - Data Mining Techniques in CRM: Inside Customer Segmentation - page 286

Table 6.22 A summary of the market research findings on the segments.

Number Segment Customer share Attrition risk Satisfaction

1 Depositors-investors Medium Low High

2 Young active cus-

tomers

Low Low Medium

3 Borrowers-credit

card users

Medium High Low

4 Full relationship cus-

tomers

High Medium Medium

and truly profitable customers. The low attrition risk of the more conservative
and traditional, elderly depositors-investors could be possibly explained by an
understandable unwillingness to become actively involved and to re-evaluate their
decisions. They settle with their current security and try to avoid the fuss of
transferring their assets to a new bank.
Each segment has distinct characteristics which induce growth opportunities
when tackled appropriately. All the aforementioned profiling information was put
together and assessed by the marketers of the bank in order to develop tailored
business objectives for each ''Mass'' segment. These goals are summarized in the
conclusions table, Table 6.23.
The main objective for the depositors-investors was to attract an even higher
share of their assets. Another goal of equal importance was to motivate them,
through appropriate incentives, to use their premium credit cards more. These
people should feel secure and that they are co-operating with a reliable financial
organization to which they can entrust their wealth. The bank should offer them
the feeling that it is guarding and protecting their assets. It can also provide
investment guidelines and suggestions for low-risk investment products. These
suggestions can be differentiated and tailored to their investment profile. Another
objective concerning those customers was their gradual transfer from the manual,
traditional channels (teller in the branch office) to less expensive, alternative ones
(ATMs, phone banking, etc.).
A large part of the young active customers segment has a rather new and
limited one-product relationship with the bank. Sustaining and further developing
this relationship was set as the first priority by offering loyalty promoting products.
This is a diverse and dynamic segment that can serve as the pool for new full
relationship customers. They are probably heavy consumers. Therefore, they can
be motivated to increase their credit card usage. Some of them may be facing
even bigger needs and challenges due to a possible change in their life, such as
marriage or a newborn baby. Consequently, some of them may also turn out to be