Analytical solutions provider Teradata has launched a new product which can measure customer profitability.
The software package, called Teradata Value Analyzer 2.0, precisely measures the profitability of each retail and commercial banking customer and helps managers analyse marketing and customer service campaigns.
The Value Analyzer behavioural-based approach is very different from more traditional measurement tools that use high level averages or sample accounts to develop a picture of each customer. Value Analyzer, which runs on NCR's Teradata data warehouse engine, starts with actual client transactions for every account, then establishes the measurement using revenue, expense, risk and capital provisions. When the calculation engine runs, it links costs and revenues to every transaction at the account, client, product and channel, across the organisation.
Michelle Houareau, marketing director, Teradata, says: "Value Analyzer collects information that can be used to align marketing campaigns with customers' life styles, empower the sales force with relevant product offers, predict client attrition or risk of loan default, encourage customers to use various channels to access services, and forecast client product purchases."
To boost speed, Value Analyzer calculations are completed inside the Teradata data warehouse engine. This helps reduce the amount of time it takes to process data. A profitability report is then created from the calculations.