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Managing Tech ROI Boosts Capital One

ORLANDO, FL — Managing the return on its technology expenditures is helping Capital One improve its business and keep costs stable, the company's vice president, direct marketing center, told attendees in a keynote address at the Winter 2003 National Center for Database Marketing Conference here yesterday.

Capital One is a Fortune 500 company and one of the largest domestic card issuers. It sends 2 billion pieces of mail yearly.

Dave Jeppesen said that much of its success stems from efforts to receive a high ROI from its technology investments. He also said that this approach has helped Capital One become more diversified.

Before purchasing technology, “you really need to know what your business objective is,” Jeppesen said. “You really have to know what you are going after.”

For example, he said, your objective could be higher response rates, decreased attrition or increased sales.

“Without that, you are going to wander all over, and your return is not going to be very high,” he said.

Jeppesen also said that Capital One is careful in choosing suppliers: “We look for three things in a supplier relationship: alignment, which means we are aligned with them; engagement, where we make sure we talk with them in a personable, direct way often; and transparency, [where] they need to understand what we are trying to get done and we need to understand what they are trying to get done, and what their cost position is.”

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