great(p) wholeness Financial Corporation 1. How is Capital Ones use of IT different from other mass customization strategies? Capital One uses IT through its training-establish strategy (IBS) to record, organize, and analyze data on the characteristics and behaviors of their clients, as stated by CEO Richard Fairbank. Their philosophy was to exploit information by constructing scientific models that could be used to both respect the quotationworthiness of potential cardholders through FICO scoring, and to customize product offerings for existing ones. This was make through data mining, sorting, customizing offers and marketing campaigns, and then analyzing this data to think what campaigns worked for what reason and what it returned in r razeue and profit generation. This differs from other monetary institutions in that these other institutions were compiling data manually, accepting applicants based upon debt-income ratios and were all charging the same interest rate and annual fee. Capital One saw direct marketing as a means to record every interaction with a customer electronically. It allowed them the index to customize products to each(prenominal) customer and to ensure each interaction was unique.
Direct marketing gave Capital One the ability to turn a business into a scientific science lab where every decision about product design, marketing, channels of communication, credit lines, customer selection, collection policies and cross-selling decisions could be subjected to systematic testing using thousands of experiments. It also enabled the ability to roll out products on a national scale and at full speed erstwhile they had been found to work without incurring the large fixed cost that accompany brick-and-mortar operations. It gave them the potential to reinvent the entire economics of a business. Capital One realized that few products were direct marketed and that even fewer firms were fully exploiting the power of statistical analysis.... If you want to turn a full essay, order it on our website: Orderessay
Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.
No comments:
Post a Comment