TSYS released on Tuesday a white paper that examines the large quantity of information available to card issuers, suggesting that issuers leverage big data to increase cardholder retention.
The report said that when payment and transaction data are combined on the right analytical platforms, customer behaviors become clearer. The report also suggested three best practices to be used by issuers to leverage data to improve cardholder retention strategies.
“TSYS has had many conversations with our issuing clients who are aware of big data but unsure how to best use it,” Rob Hudson, the senior director of client management at TSYS International, said. “We recommend that issuers look at the spend trends and transaction characteristics of their existing cardholders. This information allows them to make offers and suggestions that impact their business and the cardholders’ experience.”
Additionally, the report said combining transactional and spending data with demographic information provides details about the consumer, their behaviors, risk tolerance and lifestyle changes that could have an impact on overall financial goals.
The report also said that analysis of structured data sets with less-structured types of data, like data collected through social media, can be used to hone cardholder retention strategies. The paper concluded that leveraging big data will not only improve the overall customer experience, but it will increase loyalty and revenue through the offering of better targeted promotional offers.