© 2018 Fair Isaac Corporation. All rights reserved. 1

EXECUTIVE BRIEF

Risk-aware marketing means smarter, not harder, marketing decisions and execution:

Targeted cross-sell decisions based on customer’s financial goals and risk-profile

Real-time actions to profitably grow value of current accounts

Integrated decisions across the customer lifecycle to increase revenue and profit

Personalized customer journeys across channels

Increased organizational agility

Effective marketing requires financial institutions to have a precise understanding of customers. After all, how else can you deliver relevant offers? Imagine your favorite cafe where the wait staff recognize you, know your favorite table and typical order. They know you well and it’s one of the main reasons you go there instead of the good but less personal deli next store. Consumers value relevant, personalized experiences—and expect it. Interactions with financial institutions should be no different. Translating this into a digital engagement isn’t as tough as you may think, and results in long-lasting customer relationships and increased profitability.

Risk-aware and analytically driven marketing offersWhen it comes to marketing campaigns, sending an automated offer is easy. What takes skill is automating offers in line with the overall relationship value and risk profile, proving you know your customer best and put her on a thoughtful path towards meeting her financial goals. It’s especially important for banks to find this balance when marketing to high-value customers to minimize risk of attrition. Existing FICO® TRIAD® Customer Manager and FICO® Strategy Director clients can achieve this level of sophistication in marketing decisions by taking advantage of the marketing decision area.

This underutilized decision area leverages customer history, activity, risk scores, attrition scores, behavior scores and more to make risk-aware, analytically driven offer selection. For example, set up welcome kits and dormancy prevention campaigns for new card customers who haven’t activated their card yet, send credit limit increase and attrition prevention campaigns to customers with high attrition and revenue scores, and cross-sell a secured credit card to high risk customers with a lower FICO® Score.

FICO customer management data sharpens marketing campaigns

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EXECUTIVE BRIEFSend customers on marketing journeys aligned to expectations and risk

Perfect offers still need perfect execution

FICO® TRIAD® Customer Manager and FICO® Strategy Director’s marketing decision area automatically decides the best offer for a customer while maximizing profit and revenue. From there, a marketing campaign management system must take over to determine how to present the offer to the customer. Ideally, the marketing solution decides the best execution channels, message and timing that align with the customer’s preferences and interactions—for example, identifying when a customer visits your website, opens an email, enters a branch or logs into the mobile app, and then having tailored offers ready at those touchpoints, without over contacting or exceeding the determined offer limit. FICO® Marketing Solutions Suite offers a platform to launch and manage campaigns that engage customers in personalized conversations across channels, and a real-time engagement capability that captures interaction information such as website visits or customer service calls to create the most suitable marketing journey, resulting in a superior customer experience.

Personalized, relevant marketing journeys delivered at scale

With so much data stored across disconnected systems across the enterprise, a marketer’s challenge is consolidating it, making sense of it and maximizing its value in marketing campaigns. FICO is the industry leader in this area, evidenced by our success with TRIAD Customer Manager. FICO

Marketing Solutions Suite has the same skill set. It includes a customer data integration component that takes overwhelming amounts of data and maps it to elements that make it usable in marketing campaigns such as customer attributes, scores, demographic data and customer activity.

What’s even more sophisticated is how marketing campaigns can access FICO decision engine data from TRIAD Customer Manager and Strategy Director’s Marketing decision area in real time to make smarter marketing decisions. The information you have on customer behavior in these systems is priceless and gives financial institutions a competitive advantage to make profitable decisions across the customer lifecycle. For example, in Figure 1, a customer with a high attrition score and high customer value in TRIAD Customer Manager or Strategy Director would be selected for a multi-touch marketing

campaign utilizing more marketing resources such as direct mail, email follow-ups and online offer presentment since the ROI potential is higher. Fewer resources would be used on customers with lower attrition scores and customer value. Marketing decisions such as these tied to each customer’s individual risk profile and profitability reduce marketing waste, resulting in better returns on marketing spend.

For more direction on creating

and delivering analytics-driven

and risk-aware marketing

offers, email us at:

info@fico.com or call

+1 888 342 6336.

FICO customer management systems and Marketing Solutions Suite work together to combine data, analytics and sophisticated software for customer-centric marketing strategies.