REVIEWER: Clarence Masshardt, vice president of database marketing and statistical analysis for Marshall & Ilsley Corporation (M&I).

BACKGROUND: Marshall & Ilsley Corporation has more than 26 affiliate banks and more than 200 offices in Wisconsin and Arizona. Beyond its Wisconsin and Arizona customer base, M&I owns and operates 49 offices that provide trust and investment management, equipment leasing, mortgage banking and data processing. The corporation boasts $24.9 billion in assets

PLATFORMS: Marshall & Ilsley runs the Quadstone System on a Microsoft NT Server.

PROBLEM SOLVED: M&I regularly conducts large direct marketing campaigns; but, due to the widespread customer base and vast array of services, it has been difficult to target potentially interested customers with the appropriate programs. Like many other organizations, M&I is changing focus from a product-centric to a customer-centric CRM approach. M&I purchased the Quadstone System to help develop more sophisticated and flexible customer models to ensure offers are based not only on the customer's propensity to buy a product, but also on the customer's propensity to buy many products and the profitability improvement for each product. By applying constraints (e.g., capacity to respond to customer requests) to optimize budgets, M&I now produces an optimized marketing strategy that accurately targets customers with the right product (most profitable result) at the right time. Quadstone's technology has been instrumental in increasing response rates and ROI for M&I. For a recent campaign, we received more reply cards during the first two weeks of the campaign than we had received for the entire previous year. However, perhaps just as important is that the Quadstone System paid for itself with the response to the first mailing it guided, two months after installation.

PRODUCT FUNCTIONALITY: The Quadstone System transforms data into more easily understood 3-D graphical representations, generating easily recognizable behavior patterns with its sophisticated visualization tools. The technology allows M&I marketing analysts to quickly build and view all the necessary customer data. Now M&I can create and deploy predictive models within one process to meet aggressive business deadlines. The purely statistical software used in the past had difficulty sorting through the bank's large volumes of data and was too slow.

STRENGTHS: The Quadstone System integrates advanced predictive modeling (data mining) with a highly visual business user interface to support customer exploration and selection. Using the Quadstone System, M&I can directly target customers who are most likely to be interested in buying the particular products or using the specific services in a profitable manner. Quadstone's tools provide a complete view of all the customer data and deliver analysis results 20 times faster than the solution previously used by M&I. Quadstone is able to process the information and build a model in an afternoon. Analysts can now get done in a day or two what used to take weeks; and, as a result, the database marketing department's productivity and efficiency have improved dramatically.

WEAKNESSES: The Quadstone System makes use of dynamic visuals to interpret customer behavior but requires the use of an X-Windows client to work on the PC/laptop which resulted in the need to purchase a separate license. Quadstone worked with M&I IT staff to ensure that the integration process was not compromised. M&I is looking forward to the next version of the Quadstone System that is expected to include a native Windows client.

SELECTION CRITERIA: M&I selected the Quadstone System over other business intelligence and CRM applications because of its scalability, intense 3-D graphical interface and ease of use. It was very important to be able to better target customers in the direct marketing campaigns and create more significant, long-term customer relationships which could ultimately be measured by tenure, cross-sell ratios and profitability.

DELIVERABLES: The Quadstone System provides multidimensional visualizations of customer behavior, cross-tabulated reports, decision tree segmentations and response models, customer behavior data across multiple channels, mailing and control cell lists, and ability to analyze clickstream data.

VENDOR SUPPORT: Quadstone's pre- and post- implementation support is excellent. The staff is skilled and extremely knowledgeable.

DOCUMENTATION: Quadstone provided M&I with a comprehensive product walkthrough tutorial as well as a detailed reference manual. On-site training by Quadstone staff was outstanding and was designed to M&I specific business problems. All documentation is available in hard copy or online via a Web browser.

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