(Des Moines, Iowa – Jan. 23, 2013) – In a new white paper jointly written by payments processor The Members Group (TMG) and its data analysis partner IQR Consulting, community financial institution (FI) card teams are encouraged to view data analysis as a crucial tactic for maintaining cardholder loyalty in an increasingly competitive environment.
“Whereas traditional customer segmentation has largely been based on demographic information, data analysis focuses on customer behavior,” writes co-authors Todd Herren of TMG and Karan Bhalla of IQR Consulting. “With an in-depth understanding of this behavior, FI leaders can better identify patterns, providing them the insight necessary to develop extremely effective campaigns for growth.”
Data analysis for card portfolios is a major component of the white paper, which includes a case study and insight from TMG’s sister company TMG Financial Services (TMGFS). Among the outcomes TMGFS’ Eric Schurr, vice president of credit & risk, shares in the paper is the ATIRAcredit agent-issuer’s average incremental profit achieved as a result of data-powered strategies.
Several myths about data analysis are also discussed in the paper. These include the misconception the tactic is only useful for when analyzing extremely large pools of data and the common belief data analysis solutions are cost-prohibitive for community FIs. Discussion of the later misconception centers on what the authors cite as a change in the accessibility of data analysis. Much of the associated cost to data analysis, writes the authors, stems from the fact data analysis is largely a function of the human mind. “Fortunately, TMG’s equity investment in IQR has allowed FIs of all sizes access to this game-changing tactic,” write the authors.”
To learn more, download the white paper “Data Analysis Points the Way Forward for Card Management Teams” at themembersgroup.com/prdataanalytics.
About TMG
The Members Group (TMG) is dedicated to creating customized, technology-driven card processing and payment solutions for credit unions and community-based financial institutions across North America. Innovations in fraud management, loyalty programs, alternative payment systems and analytic reporting, and the competitive advantages they create, have helped TMG forge a new standard in offering cutting-edge credit, debit, ATM, prepaid card products and a P2P payment solution. For more information, visit www.themembersgroup.com.