The Dallas Teachers' Credit Union has big plans for Unica's Affinium product. The agency plans to use the predictive modeling suite not only to determine member preferences, improve new member acquisition and support DTCU's marketing activities, but also to determine loan loss allowance requirements.
“We will use this software to predict loans that are most likely to go bad so we can determine how much to put in the reserve account,” said Angela Hooper, vice president of marketing at the Dallas Teachers' Credit Union. “Affinium software can predict this kind of behavior in the same way it can predict who is going to buy a product.”
The credit union initially will use Affinium to determine which product information and promotions are most likely to meet members' needs, helping the credit union cross-sell certificates of deposit, individual retirement accounts and other investment vehicles to members interested in such products. The credit union also will use Affinium to deliver targeted marketing messages to a prospect population modeled after the most profitable members in the credit union's member base.
DTCU's member acquisition program received a major boost over the summer when the Texas Credit Union Department approved its proposal to expand from a professional-based to a community-based enterprise, marketing its services to the 1.5 million potential new members in Dallas, Cullen and Rockwall counties, 100 select employee groups, and students and faculty from area colleges and universities.
Kevin Cavanaugh, director of product management at Unica, said Affinium is a set of four types of predictive modeling applications.
Response modeling predicts behavior based on any number of attributes and identifies the people most likely to respond to a particular promotion. It also identifies which attributes have good predictive value.
Customer valuator modeling focuses on identifying which customers a marketer wants to keep and which customers are not profitable.
Customer segmenter modeling allows an organization to take a group of people — from the most profitable to the least profitable — and identify their unique attributes relative to the entire group.
Cross-sell modeling looks across all of a customer's purchases to identify the customer's likelihood of buying other products a company offers.
“With Affinium, Dallas Teachers' Credit Union will be able to assess each member's future potential value, enabling it to build not only closer but also more profitable relationships with members, and to maximize the return on its marketing investment,” said Yuchum Lee, Unica co-founder/CEO. “The credit union's own projections indicate that Affinium will pay for itself in just a matter of months, affirming Unica's commitment to helping customers achieve tangible results through technology.”