Credit Card Companies Invest in Big Data for 'Hyper-Personalized Marketing'

If the Data 3 Act Passes in the Second Half of the Year
More Refined Services Will Be Possible

[Asia Economy Reporter Ki Ha-young] Card companies are focusing on hyper-personalized marketing using big data. This is because providing customized benefits can improve customer satisfaction and enhance profitability. The Data 3 Act (amendments to the Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act), which will be implemented in the second half of this year, is also expected to accelerate this trend.

According to the card industry on the 28th, KB Kookmin Card recently began developing algorithms to build a hyper-personalized marketing platform. The goal is to provide customized benefits by precisely analyzing customer types and consumption patterns. KB Kookmin Card, which operates the big data-based real-time marketing system called the 'Smart Offering System (SOS),' plans to advance hyper-personalized marketing through this algorithm development.

Hyper-personalized marketing is a service that provides customized benefits from the customer's TPO (time, place, occasion) perspective rather than targeting an unspecified majority. For example, a female office worker in her 30s who frequently visits cafes might be offered coupons and introduced to cafes visited by users with similar consumption tendencies.

Shinhan Card provides personalized services specialized for individuals based on customer-specific TPO situational awareness. By introducing real-time processes, external information such as weather and commercial districts is reflected in the system in real time to provide benefits. Benefits created through this model are recommended optimally according to TPO via hyper-personalized recommendation pages such as Tops Club, Financial Lounge, My Shop, and My Auto.

Samsung Card also supports customized marketing for small and medium-sized merchants using big data analysis technology. 'Link Biz Partner' is a service that selectively provides benefits only to customers who are highly likely to use the respective merchant through big data analysis algorithms. It is explained that this is more cost-effective than traditional promotions targeting an unspecified majority.

Lotte Card operates hyper-personalized services applied to the Lotte Card Life app through a personalized recommendation algorithm that classifies customer preference indices into about 200 categories. The 'Touch' service, which automatically recommends benefits needed by customers and applies them automatically when paying at the respective merchant, also applies this hyper-personalized service.

The card industry plans to expand hyper-personalized marketing that proposes customized products for each customer once the Data 3 Act is implemented in July. The more data accumulated, the more sophisticated hyper-personalized marketing can be activated. An industry official said, "All card companies are focusing on expanding hyper-personalized marketing using big data," adding, "This trend will spread further once the Data 3 Act is implemented."