The company saves data on individual card-holders, and transactional data on what they do with their cards. We try to tailor individual parameters to specific customers. The advantage of the data warehouse, however, is that by targeting a mailing based on documented data from different sources, companies get a better return with less waste. Information from testing indicates what kind of offer is likely to work. That testing includes playing with annual percentage rates and teaser rates, for example, offering use of the card free of charge for an introductory period, or examining how the card looks or what materials are included in a mailing.
Testing is ongoing.
The formula always changes. Capital One Financial Corp., a Falls Church, Va., credit-card issuer, also exploits data in its warehouse to tailor card products to specific groups and individuals. It can issue a card for customers who have had credit difficulties in the past, or issue low-priced cards to people with excellent credit ratings. The warehouse data is used to identify specific market niches or affinity cards for special interest groups.