If the Data 3 Act passes in the second half,
more refined services will be possible
[Asia Economy Reporter Ki Ha-young] Credit card companies are focusing on hyper-personalized marketing using big data. This approach is expected to enhance customer satisfaction and improve profitability by providing customized benefits. The Data 3 Act (amendments to the Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act), set to be implemented in the second half of this year, is also anticipated 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 tailored 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 enhance hyper-personalized marketing through this algorithm development.
Hyper-personalized marketing is a service that offers 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 receive coupons and recommendations for 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 offer 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 offers benefits only to customers likely to use the respective merchants through big data analysis algorithms. It is explained that this approach is more cost-effective compared to 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 merchants, also incorporates this hyper-personalized service.
This year, emphasizing 'digital innovation' as a management strategy, the card industry has called for the expansion of hyper-personalized marketing. As the payment environment rapidly digitalizes, big data has become a new growth engine for card companies. Shinhan Card CEO Lim Young-jin emphasized in his New Year's address, "Let's create differentiated value in platform business" and "Lead the '100% digital card life' linked with hyper-personalized marketing." KB Kookmin Card CEO Lee Dong-cheol also stated, "Let's expand hyper-personalized marketing utilizing data capabilities and diversify service lineups by newly entering the MyData market."
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 insider 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 enforced."
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