Turning Big Data Into Big Revenue
Segmentation Tips for Relevant Member-Centric Marketing
use case
The term "Big Data" can be an anxiety inducing one for many financial services organizations
and it is easy to become overwhelmed with the sheer volume and velocity of data available
today. Yet, many would agree that if leveraged well, Big Data can become a substantial
competitive advantage.
In addition to valuable internal data (ex. member balances, products, demographics, etc.), there are
many rich external data sources that can help firms empower their marketing efforts by creating a
more complete picture of their members and prospects.
The key to benefiting from Big Data is to find ways not to drown in it.
How Does Big Data Play Into Actionable Segmentation Strategies?
One common approach marketing organizations across the Financial Services industry rely on to
gather and distill disparate data is segmentation. Many firms segment their existing members as well
as the markets in which they do business in some fashion today, but often find it a struggle to do so in
a way that will be effective and actionable. Also, they may not know where to start when it comes to
combining their own internal data with the vast amounts of rich, well-managed external data to gather
actionable insights for better decision-making.
Here are four tips to help firms get started implementing actionable segmentation strategies for both
traditional data sets and Big Data from internal or external sources:
1. Begin with the end in mind. Get agreement on the business goal and then design a
segmentation approach around that goal.
2. Build only what can be operationalized. Define the steps for turning segmentation data into
insights and then into decisions. Make sure each step is feasible, affordable, and compliant
with regulations.
3. Use data that replicates the member's view, not just the credit union's view. For example,
a credit union needs to look beyond a member's accounts at the credit union and consider the
member's total wallet and needs. Share the insights gained from segmentation. Often times,
segment definitions can be applied without substantial changes by other core systems and
member-facing personnel.
