Methodology
By leveraging business intelligence from within Touché Analyzer, along with extensive market research and behavioral modeling techniques, Harland Financial Solutions has developed three highly strategic segmentation scores: Household Value Segmentation, Service Propensities and Share of Wallet.
Household Value Segment
The Household Value Segment goes well beyond more simplistic segmentation methods that only consider single data elements - like overall profitability or product use - and is designed to be immediately recognizable by staff at any consumer interaction point. The Household Value Segment is a product of automated research and segmentation processes within Touché Analyzer that assesses household profitability, product usage, share of wallet and client potential to establish a strategy-based Household Value. This enables the end-user to better formulate marketing and, perhaps more importantly, sales and service approaches best suited for each individual client household.
Service Propensities
Service Propensities are scores developed to help financial institution employees engage the client and direct the interaction. They can also be used by marketing for targeted product promotions. Propensities have been developed by employing modeling scores powered by Claritas’s P$YCLE® NE codes combined with Touché Analyzer’s proprietary analytical routines. Service Propensities indicate the likelihood of a customer to use specific products and services at a financial institution. Household-specific propensity scores are provided for all major product categories. In addition, we refine the results and rank the strength of each propensity - High, Medium or Low - to assist the end-user in engaging each consumer in an interactional versus a transactional encounter.
Share of Wallet
Share of Wallet values help an institution identify the degree to which they are currently capturing a consumer’s balances as they relate to the share of “wallet” for that product/service. Leveraged as a component in the computation of the Household Value Segment score, Share of Wallet also stands alone as a valuable targeting and customer segmentation tool. Share of Wallet scores have been developed at the household level by comparing a household’s average product category balance (per their P$YCLE NE segmentation) and their actual balance at the financial institution for that product category, thus reporting a Share of Wallet in the form of a percentage. Household-specific Share of Wallet percentages are also provided for all major product categories.