Customer Relationship Management at Capital One
Capital One is an American financial services company, which have about 45 millions of clients worldwide. The group is also present in the UK. Capital One proposes its customers opening accounts with credit cards, and other financial products like insurance. The company also proposes loans.

How would you define CRM as implemented at Capital One ?
At Capital One, CRM is present in all the company’s activities and services. The goal is to develop valued relationships with the customers and handle the risk, understanding intimately the consumer. Thanks to that, the company is able to propose customized products which ideally correspond to needs and to the customer’s risk profile.
The company uses IBS to implement her CRM: ISB permits to establish large quantities of data about its customers, to meet the goal mentioned above. Information is collected thanks to customers’ transactions.
Then, when the data are collected, the company executes its “Test & Learn” strategy. This is testing the financial activity on a sample of consumers thanks to direct marketing (mailing for example), then extrapolating it on a larger scale. This permits first, to know the customer’s reaction for each action put in place, then, thanks to this, to develop new ideas and products and to target the consumers.

What are key CRM activities and processes at Capital One?
Key CRM Activities and processes of Capital One
Analytical CRM
Operational CRM
IT
HR & Organization
Strategy
Process of segmentation : types of risk profiles = 2 segments (transactors & revolvers) + 2 sub-segments (high risk revolvers & low risk revolvers) => C.O offers them a lower APR to attract them
Other segment : customers who have Capital One’s credit card for first card => relatively higher risk so not well-treated by other banks so C.O offers them an initial higher APR, with annual fee and lower credit line.
Retention activities : to avoid inactive