Case Study: First Tennessee Bank – Banking on Knowledge
- IBM SPSS Modeler
- IBM SPSS Statistics
“First Tennessee promises our customers that we will be there for them, that we will power their dreams. One of the most exciting things for me is that Modeler allows us to understand our customers better than we ever did before and optimize our conversations with them in a way that’s a win-win…profitable for us and relevant for our customers.”
Dan Marks, Chief Marketing Officer, First Tennessee Bank
Banking on Knowledge
First Tennessee Bank Sharpens Marketing Focus with IBM SPSS Modeler
First Tennessee Bank, a Memphis-based bank with more than $25 billion in assets, also suspected it was wasting money on inefficient marketing campaigns, which typically focused on products, not customers. “You could say we were throwing our messages away,” says Tanner Mueller, First Tennessee’s Direct Marketing Database Manager.
First Tennessee Bank had an abundance of data but wasn’t using it to identify individual customer behaviors or devise marketing strategies tailored for individual preferences and buying patterns. The bank wanted to leverage its customer data to increase response rates and reduce costs for marketing campaigns.
By using IBM SPSS Modeler to better target customers, First Tennessee’s marketers were able to decrease the quantity of pieces they mailed out while increasing the frequency. They also extended the planning cycle for campaigns and established a policy of targeting all products every month. To build on the success of its models, First Tennessee plans to incorporate elements of IBM’s Cognos Business Intelligence software into its IBM SPSS models.
Gained significant customer insights, resulting in an increase in direct response rate to 3.1 percent; enabled the company to better match products to customers individual needs; eliminated the less effective, one-product-fits-all approach to marketing; lowered mailing costs by 20 percent.
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