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Marketing Revolution (Capital One)

In: Business and Management

Submitted By sbshim
Words 5491
Pages 22
This is a Marketing Revolution
Capital One is winning big in the cutthroat world of credit cards by changing the rules. Its mission: Deliver the right product, at the right price, to the right customer, at the right time. Its method: Never stop testing, learning, or innovating.
By Charles Fishman
The telephones at Capital One Financial Corp. ring more than one million times a week. People call to ask about their MasterCard balance, or whether a recent payment was received, or why their interest rate has jumped. And more than 1 million times a week, here's what happens — before a caller hears the first ring:
The instant the last digit is punched, high-speed computers swing into action. Loaded with background information on one in seven U.S. households and with exhaustive data about how the company's millions of customers behave, the computers identify who is calling and predict the reason for the call. After reviewing 50 options for whom to notify, the computers pick the best option for each situation. The computers also pull and pass along about two dozen pieces of information about the person who is calling. They even predict what the caller might want to buy — even though he or she isn't calling to buy anything — and then they prepare the customer-service rep to sell that item, once the original reason for the call has been addressed.
All of these steps — the incoming call, the data review, the analysis, the routing, and the recommending — happen in just 100 milliseconds. That's one-tenth of a second, or one-eighth of the time that elapses between beats of a human heart.
Make no mistake: Capital One has some wicked-fast computers. And its growth rate has been nearly as fast. The company took shape in 1994, when it began as a spin-off of Signet Banking Corp. It now ranks among the 10 largest issuers of credit cards in the United States, with 16.7 million

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