Bancaja is planning to decide the commercialization of credit card in a mass market campaign that has been performed by it. There are almost 8 campaigns that have been conducted by the company by taking into the account the different types of customers. Hence, as per the exhibit 4, there is a use of six attributes, which will prove to be helpful in the customer relationship management.
However, the first three attributes are;waiving the signing fee, the contingent annual and fee and lastly, the interest rate that has to be charged to its customers after the customers make a purchase of credit cards. These first three variables have high importance because of the high impact upon the revenue stream of the company. Apart from that, the remaining attributes will provide assistance in the credit commercialization process.
It can be seen that the response rate in the first campaign is higher than the rest of the campaign and the channel that has been used in it is a branch.The best attribute level in this campaign is the waiving of the signing fee because the customers will get attracted to this offer that is made by Bancaja.The higher interest rate of 15% charged in the first campaign will result in higher cash inflows to Bancaja.
2:The response rate has been replaced with the new dataset in order to control the several differences that are arising in three populations that are being targeted. The first column represents the ratio of success in the target population. Hence, the second factor is taking into account the success ratio in 75% of the population that is having high propensity and the last column is representing the ratio of success in 50% population, relatively.
Hence, there is a need to take control of the success ratio in the three target populations. The percentage that can be seen in the first campaign is 13%that is based upon the 100% target population. Secondly, the percentage of the population with the highest propensity is 21%. Lastly, the first campaign in the third targeted population segment has a percentage of 24%.
Therefore, in order to overcome the differences between the three target populations,the attributes should be taken into account. This is because these are factors that will result in generating the revenues and the commercialization of credit cards in different target populations. To eliminate or reduce the chances of low success in different target populations with high level or no propensity,the campaigns should be conducted in such a way that all attributes are taken into account to avoid the huge difference i.e. 13.1% in the first campaign and 1.1% in seventh campaign.
3:In order to make the commercialization of credit cards effective and successful, the three most significant attributes have to be taken into account. The reason behind this is that these attributes will prove to be helpful in the success of the campaign adopted by Bancaja.
Hence, if the annual fees are not being charged, then it will have an impact on the revenue stream of the company. On the other hand, the customers from different segments may not get attracted due to the higher annual fees. Therefore, it seems to be an important attribute to these three target populations. However, if the low interest rates are being charged, then it may not result in higher cash flows to Bancaja, but the customers may look at it from a different perspective.
Despite this, the detailed mailing is also specific to the targeted population because if the emails do not have sufficient information regarding the credit cards that are being offered by Bancaja, then the customers may not get attracted to the offers that are made by the company.Hence, the credit card that will be recommended is the one, which is able to take into account the first three attributes.
b)There are several strengths and weaknesses based upon the explanatory and dependent variables.They are illustrated as follows:
STRENGTHS
- Ø The first strength that needs attention is the implementation of the customer relationship management (CRM). Hence, Bancaja has conducted several campaigns in order to fulfill the needs of its customers.
- The second strength that has to be considered is the strong brand that Bancaja is having. It may prove to be beneficial in keeping the competitors of other regions to prevent them from entering the market in which Bancaja is operating.
It also has a high customer orientation because it has the ability to take into account the needs of its clients and to keep them satisfied by focusing on the attributes,which include the annual fees, the waiving of the fees and lastly, annual interest rate..................
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