MARKETING CUSTOMER INFORMATION SYSTEM (MCIF) MARKETING

Transcription

1 AGENCY POSITION u MARKETING CUSTOMER INFORMATION SYSTEM (MCIF) MARKETING u PRESENTED BY STRATEGIC DIRECT MARKETING, INC. 447 METROPLEX DRIVE NASHVILLE, TN

2 MCIF MARKETING Each year, more and more of America s leading financial institutions invest in MCIF (Marketing Customer Information File) systems. When properly managed, an MCIF system can be the key to building profitability and growth of your account base. At SDMI, we are strong proponents of MCIF marketing. This document presents four categories for discussion: MCIF Overview Major Benefits of MCIF Marketing The MARQUIS MCIF -- Our Recommended Platform The SDMI Modular MCIF Matrix Mail Program 2

3 MCIF MARKETING OVERVIEW MCIF systems solve the age-old issue of data rich/information poor financial institutions. Over the last 20 years, the size and scope of account holder and prospect data has multiplied exponentially. Prior to the introduction of MCIF systems, the ability to work with these data was limited for several reasons: a. ACCESS. The data resided on the institution s mainframe computer, or at a remote data processing vendor. To work with the data, marketers were required to file a work order or MIS request, which would go into a queue. Often, these queues would back up for 2 to 3 months. b. IMMEDIACY. By the time the report was produced, the data was insignificant, the need had changed, the window of opportunity was missed, or the next big thing had surmounted the original need. In a nutshell, the boat was missed. c. FLEXIBILITY. The process of analyzing data is often interactive. Discovering new trends or patterns in account holder behavior raises new questions and queries: if A is true, what happens when B is present, or C occurs? In the old days, this meant a new MIS request, and more waiting. The proper analysis of trends often took longer to complete than the trend itself! Today, this is no longer the case. A good MCIF system will give you instant access to the data you need. MCIF systems take a wealth of data from the SYSTEMS side of your institution -- and put it into a Personal Computer (PC) or MARKETING environment. This lets you run instant queries and scenarios to discover what is really happening with your accounts. 3

4 MCIF MARKETING MAJOR BENEFITS The expanded use of MCIF data has been nothing less than a revolution in the way institutions monitor and react to their account holders and prospects. Here are some of the key advantages: EXISTING ACCOUNT HOLDERS Analyzing transaction behavior Responding to this behavior quickly Charting and recognizing trends Cross-selling and up-selling Householding all accounts Appending geographic/demographic data by household Tracking household changes Creating direct mail campaigns Tracking campaign response Analyzing branch / product performance Developing new products and services Locating new branches and ATMs Selling products based on these household changes 100s of other marketing functions 4

5 MCIF MARKETING MAJOR BENEFITS PROSPECTS Capturing all prospects qualified to be account holders into one database Appending household geo/demo information Segmenting the prospect base by lifecycle, demographics, etc. Stratifying the prospect base by potential product interest Creating multiple target cells for testing Monitoring direct mail results Analyzing response to determine winning cells Much, much more With all of the data that is available to you in an MCIF system, you might think it will be complicated to use. And the truth is, many existing systems are very complicated to use. That is why SDMI has formed an alliance with a vendor that has developed the industry s simplest and most powerful MCIF: The MARQUIS MCIF from Centrax 5

6 THE MARQUIS MCIF FROM CENTRAX SDMI is proud to be a licensed MAC (MARQUIS Authorized Consultant). This remarkable software package puts amazing power into your hands, with instant access to virtually any account holder data you want. With MARQUIS you can: Build an account holder history by capturing and retaining transaction history by household Track which households are most and least profitable, month-to-month Measure and monitor changes in cross-sell ratios by evaluating new accounts opened by new and existing account holders Determine the profile of your most profitable households and convert those that meet the same profile, but are less profitable, to become more profitable Determine the profitability of your products and services with extreme accuracy. The built-in profitability module is light years ahead of many of the old line MCIF systems, and is extremely flexible and accurate Create board-ready reports, graphs of any range of cross-comparisons Create color maps of your service area, with dozens of visual comparisons showing profit by branch, product penetration & more Monitor new branch opening by comparing projected product Create statistical models of your best account holders Produce what if scenarios on any combination of factors, to see the potential impact of pricing changes and / or product reconfiguration The possibilities are endless! 6

7 THE MARQUIS MCIF FROM CENTRAX (CONTINUED) Best of all, the MARQUIS MCIF system costs you a mere fraction of what the big check houses charge. Plus, training is FREE to all licensed MARQUIS users, and is held at the Centrax facility in Dallas at no additional charge. If you hire a new marketing person, send the new person for training at no additional charge. If you need a refresher course, or help with advanced features, you can get unlimited help FREE via telephone, or attend more classes at Centrax at no additional charge. At SDMI, we receive files from a large number of financial institutions, pulled from a wide range of MCIF systems. In our estimation, the cleanest results and best segmentation can be achieved using MARQUIS, and we strongly recommend our clients investigate this MCIF solution. 7

8 IMPLEMENTING A MCIF MARKETING PROGRAM To help our clients take advantage of the power of their MCIF system, we have developed the SDMI MCIF Matrix Mail Program. In short, this system makes it easy for you to implement dozens of direct marketing initiatives on a frequent basis, with minimal effort. At SDMI, our staff has over 50 years of combined financial institution marketing experience. During those years, we have come to believe that 80% of a financial institution s marketing needs are both recurring and predictable. The remaining 20% come from new opportunities, new products or services, or anomalies. Everyone is familiar with the 80/20 rule. It applies in financial service marketing as well. You can achieve 80% of your profits by focusing on your core products and services, and going to the well over and over again. Marketing the remaining 20% is necessary as well, because people will always want and need ancillary products and services. But it s important that as an institution you focus on what makes the most amount of money with the least amount of effort. As simple as that sounds, it has only been feasible to do this effectively since the advent of MCIF systems. And doing this in a highly-responsive way with custom direct mail kits is relatively new to the marketplace. 8

9 THE SDMI MCIF MATRIX MAIL SYSTEM As an MCIF user, your PC is updated monthly or quarterly with live account data from your processor. Once this data is loaded on your PC, you will be able to establish pre-defined queries. When you run these queries, the MCIF will search through each of your accounts and select every account that meets your pre-defined criteria. These files can be output to a database. This database can be used to prepare direct mail letters, make telemarketing calls, or both. One of the challenges facing financial marketers is creating and producing the right materials to mail to each household. After all, you have to present a compelling message and offer in order to generate a sale. But what if you have 20 different cells, each of which requires a custom message, custom literature, local branch names, addresses and signatures -- plus a calling sheet to be sent to the branches for telephone follow-up? Handling all of this back-end processing takes a lot of time, and until recently it took a lot of money. That s where SDMI s matrix direct mail system comes in. SDMI has modularized hundreds of different direct mail programs that meet the core marketing needs of financial institutions. These programs are easily customized for your institution s particular preferences, pricing, graphic standards, etc. The core elements are literally on-the-shelf, so they can be produced quickly and easily -- at a fraction of the cost of creating custom direct mail. 9

10 THE SDMI MCIF MATRIX MAIL SYSTEM (CONTINUED) The rationale behind this system is based on the cornerstone of direct mail knowledge. It is a well known fact in our industry that three things contribute to direct mail response: list, offer and creative. What may surprise you is the ratio that each contributes to the sale: List: 70% Offer: 20% Creative: 10% If you mail the right offer to the right household, you will enjoy excellent response regardless of how much time, effort or money you spent on designing and producing your mail kit. If you mail an offer into a household that doesn t need the product or service you are promoting, it will not sell regardless of how elaborate or expensive your creative is. Our modular programs are professionally-designed and written. They are simple and basic, and effectively convey the details of your offer. The key is that we can produce them quickly and easily so you save money. With our system, you really can afford to market dozens of products to dozens of different account holder groups. This is the key to making money with your MCIF. The best news of all is: once your program is established, the monthly mailings take place within days of our receipt of your data. No more worries about handling dozens of individual programs, ordering materials, waiting for suppliers, hurrying to make deadlines it s all handled like clockwork each month, so you can relax! 10

11 THE SDMI MCIF MATRIX MAIL SYSTEM (CONTINUED) If you already have an MCIF, all we will need is your monthly output files. SDMI offers three different participation plans: Annual Contract with Research. SDMI will perform all of the necessary research using a clone of your complete MCIF. Each month you will receive a complete analysis of your account holder base, including recommendations for marketing solicitations. By making an annual direct mail commitment of 100,000 units or more, you receive our research services at no additional cost. It s like hiring an extra employee without the overhead! Annual Contract -- List Provided. If you use a different analysis vendor or have in-house staff that handles your research, this is the choice for you. Under this scenario, you will simply output your selected marketing files and provide them to SDMI via tape, diskette or modem. Under the annual contract, you will receive reduced pricing on each of your mailings. Project Basis. SDMI can fulfill your mail needs on a monthly, quarterly or annual basis. The difference is that there is no long-term commitment to your program participation; everything is ala-carte. You simply provide the output files and we handle your mailing programs per your request. As you can see, the SDMI system is very flexible. To get started and find out more, call SDMI at , or simply complete and fax back the MCIF Marketing Information Request Form. 11

12 MCIF MARKETING INFORMATION REQUEST FORM Your Name Your Title Your Phone # ( ) Your Institution Name Total Assets (estimated) Total Number of Households Served (estimated) PROGRAM TYPE o MCIF Research & Analysis o Matrix Direct Mail System PROGRAM DETAILS Do you currently own a MCIF? If so, which program? Typical # of MCIF-based mailing programs per year Have you appended demographic data to your MCIF? If yes, when? Please complete and FAX to (615) , or mail to: SDMI, 447 Metroplex Drive, Nashville, TN For more information call