Vehicle Data
Electric vehicles are here to stay – and will likely gain market share as costs reduce, travel ranges increase and charging infrastructure grows.
In the aftermath of Hurricane Florence, Experian is here to help. As a first line of defense against purchasing a flood-damaged vehicle, people can download our free Vehicle Flood Risk Check app.
Trivia question: Millennials don’t purchase new vehicles. True or False?
Who is the ideal dealership customer? Wouldn’t they be one that buys or leases a car and becomes a repeat customer? Loyal customers are ideal because they prefer to go to your dealership to purchase a vehicle, get their vehicle serviced, and even have their family and friends purchase from you. This brings up an important question: what is customer loyalty worth to you? According to the White House Office of Consumer Affairs, on average, loyal customers are worth up to 10 times as much as their first purchase. They also found that it is six to seven times more expensive to acquire a new customer than it is to keep a current one. Marketing Metrics found the probability of selling to a new prospect is only between 5-20%. But if you are selling to an existing customer, the probability rises to 60-70%. So, knowing this, what holds dealers back from actively conquesting loyal customers? Time, money, resources, expertise, priority, process and systems, and data are the key factors that keep them from pursuing these ideal customers. Even though you may stare across the street at them every day, you must remember that your competition is much bigger than the dealerships next door to you. According to recent Experian® research, Whether it is a new, certified used, or non-certified used vehicle, auto manufacturers will have the highest level of loyalty by owned vehicle acquisition. Next to that, you have the Make of a vehicle followed the Model. Dealerships rank last in loyalty against these major factors. This leads to asking a few “what-ifs”. What if you have the unique opportunity to improve customer loyalty, make more money, and prevent defection to the competition? What if you had actionable insights to know your customer’s buying and loyalty propensities with a high degree of accuracy? How about if you had knowledge of timing on when to engage with your customers to appropriately deliver the right message and offers with the highest potential conversion rate? Finally, what if you had an easy, cost-effective, yet powerful way to unify big data relating to consumer, vehicle, and market and your customer data to make better marketing decisions? Thanks to Experian® and Auto HyperConnect™, you don’t have to ask those questions anymore. Auto HyperConnect leverages the most robust combination of data assets under one roof. Our loyalty component is called Auto HyperMonitoring™ and takes loyalty to the next level. Auto HyperMonitoring is an event-based customer loyalty measurement solution that gives you the ability to more effectively manage and strengthen your customer retention efforts. With insights derived from the monitoring of both macro- and micro-environments relating to the vehicle, consumer events, and the overall automotive landscape, clients can quickly gain a deep understanding of consumer loyalty propensities and can create and execute initiatives that maximize their customer loyalty opportunities. Starting with a client’s customer file, Auto HyperMonitoring provides data hygiene that verifies the VIN matches the customer household and will only monitor the VINS that have a match. Next, there is monitoring for vehicle events such as accidents or airbags going off. Consumer events equate to having a baby or moving. Market events involve incentives, OEM loyalty, and warranty expiration. Data events are phone numbers, email address, or VIN verification through the hygiene process.. These events feed into the creation of analysis & insights to identify your customers’ behavioral patterns attributed to loyalty, purchasing, and other factors. When key opportunities are identified, there is client notification. This is used to manage the customer relationship and loyalty through a dealer’s CRM system and comes in an email. How you would use Auto HyperMonitoring? It can be used to bring customers back into the showroom or service lanes in a few different ways. Initially, Dealers can call consumers to open the lines of communication. Next, sending consumers emails and direct mail with special offers are both effective. Finally, Auto HyperMonitoring can also be used to activate digital media targeting campaigns to better reach them where they’re spending their time. Finally, we have the product benefits of Auto HyperMonitoring. First off, it enhances customer engagement & loyalty. By proactively engaging with clients at the right moment based on important and relevant vehicle, customer, and market-related event triggers, loyalty can be systematically strengthened. Second, it improves marketing efficiency. Knowing when to engage with your customer base to minimizes the risk of over and under marketing exposure; improve conversion and reduce cost. Third, complete, accurate, & actionable data is delivered in a timely manner. Auto HyperMonitoring leverages both a client’s customer file and Experian’s rich data assets to enable a complete view of customer opportunities. Finally, Auto HyperMonitoring compliments and supports OEM/dealer loyalty programs. Maximizing revenue opportunities by achieving/surpassing OEM/Dealer loyalty program goals is possible with Auto HyperMonitoring. Customer loyalty is important and will directly impact dealership sales in both your showroom and your service lanes – including the benefit of referral customers. The challenges of competing with manufacturers and other dealerships are mitigated with Experian’s Auto HyperConnect suite and Auto HyperMonitoring. With these, you will have greater success when targeting customer loyalty and using data to keep the relationship between the dealership and the customer alive.
Benjamin Franklin famously said that nothing in life is certain except death and taxes. While that may be true, I think we can add another item to the list — traffic. An unfortunate part of many people’s day, traffic is an inevitable consequence when moving from point A to point B, especially when you consider the sheer volume of vehicles on the road. According to the latest research from Experian, the number of vehicles in operation (VIO) has jumped 5.7 million, going from 265.3 million in Q3 2016 to 271 million in Q3 2017. In fact, more than 17 million new vehicles hit the road in the United States, with just 11.4 million exiting operation. Numbers of that size can be hard to process, so let’s focus on something more relatable. When you’re stuck in traffic, what types of vehicles are inching along at a snail’s pace with you? No matter which state you live in, chances are you’ll see lots of full-size pickup trucks. Why? The top vehicle segment in 42 out of the 50 states is full-size pickups. The only exceptions are Hawaii — which has small pickup trucks as the number one segment — and Rhode Island, New York, New Jersey, Connecticut, Massachusetts, California and Maryland, which prefer midrange standard cars. If you think about it, these exceptions make sense. Residents of the East Coast commuter states and California probably prefer smaller vehicles because they’re more fuel efficient and it’s easier to find parking. But if you talk to a pickup truck owner, you’ll almost certainly hear why trucks are the best vehicle to own. Not surprisingly, full-size pickups aren’t just the top segment in most states; they also make up the largest vehicle segment currently on the road, at 15.3 percent. In terms of top models for full-size pickups, the Ford F-150 and Chevy Silverado 1500 are the top two best-selling trucks nationwide. Overall, Ford and GM still hold the largest market share across all makes and models. Toyota showed the greatest market share growth, going from 12.5 percent in 2016 to 13.6 percent in Q3 2017. For more information about Experian’s most recent VIO data, watch our latest webinar.
Based on statistics from Cox Automotive, Fortune.com estimated one million cars were damaged by Hurricane Harvey, Irma, and Maria. A story on Fox News predicted that 60 percent of those vehicles will be back on the market. Experian is excited to launch our Vehicle Flood Risk Check App, now available for Android on Google Play and iOS in the Apple Store. This app is available for free as part of our concern and contribution to make a concerted effort to help identify potential flood risk vehicles. “The number of flooded vehicles pouring back into the market is extremely problematic. Experian is thrilled to develop this new app to help mitigate against the risks the industry and consumers are facing,” said Yen Sullivan, Director of Product Management. “…with this easy-to-use mobile solution, clients and consumers can get instant answers by simply scanning in a VIN without having to write it down and running back to the computer to check. Our goal was to help address the current pain points by making this entirely free also.” The Vehicle Flood Risk Check App has two ways to help our clients and consumers mitigate against the risk of unknowingly purchasing hurricane-related flood-damaged vehicles. First, users can quickly scan or enter a VIN to immediately identify if a vehicle has any flood damage, brands, or hurricane-related events that were reported to Experian. Second, get an additional layer of protection with a FEMA advisory. This advisory lets users know whether a specific vehicle was registered or titled in a city that was declared a major disaster area by the Federal Emergency Management Agency. Not only can users have access to our superior flood data from all fifty-one U.S. jurisdictions, National Insurance Crime Bureau (NICB), and other flood data sources, they also have exclusive access to our daily auction flood damage information from the two largest U.S. auction houses. This is extremely important because once insurance companies declare these vehicles to be a total loss, they are moved in mass to the auctions, making them the earliest places to capture any flood damage. From a previous hurricane Katrina and Sandy study, flood or flood-related titles do not show up until at the earliest 30-days after the natural disaster, but most are 60-days after. Thus, without the additional transparency from the auctions, these vehicles will be unknowingly purchased. The second indicator, the FEMA Advisory, has proven in the past to be extremely crucial. An Experian study proved that nearly 45 percent of branded vehicles damaged during Katrina that were moved to other states the following year, lost their storm-related brands. By identifying that these vehicles were registered in FEMA major disaster areas, buyers can be more aware and may opt to get these vehicles inspected to be fully protected against flood vehicles that may not yet carry flood-related title brands due to a lag time or were title-washed. Please download the Android app on Google Play or the iOS version in the Apple Store.
Call if you need to, but protect yourself from TCPA exposure first. Follow these steps when creating your dialing strategy: Obtain customer consent Determine if the number is attached to a landline or a wireless device Verify ownership Scrub your database Calling cell numbers can be a risky business, so be sure to set the proper workflow in motion to remain compliant. >>Learn more
This summer, the Consumer Financial Protection Bureau (CFPB) took a significant step toward reforming the regulatory framework for the debt collection industry. The focus is fueled in part by the large number of consumer complaints the CFPB receives about the debt collection market — roughly 35% of total complaints. Here are highlights from the recent CFPB proposal: Data quality: Collectors would be required to substantiate claims that a consumer owes a debt in order to begin collection Communication frequency: Collectors would be limited to six emails, phone calls or mailings per week, including unanswered calls and voice mails Waiting period: Reporting a person’s debt would be prohibited unless the collector has communicated directly with the consumer first The CFPB said its proposal will affect only third-party debt collectors; however, it may consider a separate set of proposals for first-party collectors. >> Insights into CFPB\'s latest debt collection proposal
The Responsible Business Lending Coalition, a group of nonbank small-business lenders, recently announced a regulatory program designed to bring greater clarity to the industry’s pricing and consumer protections, including: The right to transparent pricing and terms The right to non-abusive products The right to responsible underwriting The right to fair treatment from brokers The right to inclusive credit access The right to fair collection practices Industry self-regulation is a good way for market leaders to demonstrate self-discipline and is preferable to legislative or regulatory changes because of its flexibility and ability to accommodate evolving market trends. >> Webinar: Online Marketplace Lending
Data quality continues to be a challenge for many organizations as they look to improve efficiency and customer interaction.
As part of its guidance, the Office of the Comptroller of the Currency recommends that lenders perform regular validations of their credit score models in order to assess model performance.
The security world was taken by surprise earlier this month when researchers discovered Heartbleed, a new large-scale threat that exploits a security vulnerability in OpenSSL.
Not surprisingly, bankcard utilization is the highest among subprime consumers with VantageScore D and F tiers having average bankcard utilization rates of 68% and 81% respectively. In comparison, VantageScore A tier (super prime) consumers had an average bankcard utilization rate of 6% and VantageScore B tier (prime) consumers had an average bankcard utilization rate of 15%. Join our panel of experts on October 23 to hear from industry experts on key regulations that are changing the way banks need to conduct business in order to grow and stay profitable. Source: Experian Oliver Wyman Market Intelligence Reports.
The cumulative effect of Basel III is expected to have a substantial impact on capital requirements. The total minimum regulatory capital will increase from 8 percent to 10.5 percent. For institutions that are considered \"systematically important,\" an additional holding requirement may be imposed of up to 3.5 percent. Download our white paper to learn more about how your peers are reacting to Basel III and how Experian can help banks to optimize risk-weighted assets. Source: Creating value in challenging times: An innovative approach to Basel III compliance by Experian\'s Global Consulting Practice
The Consumer Financial Protection Bureau (CFPB) now has the ability to write and enforce 18 consumer protection laws that guide financial products and services. The new regulator has signaled the following issues as priorities: Clarity on how credit scores affect lender decisions: Beginning July 21, 2011, lenders were required to disclose the credit score that they used in all risk-based pricing notices and adverse action notices Shorter and simpler consumer disclosure forms: One of the first priorities is to make the terms and conditions associated with purchasing a mortgage or applying for a credit card shorter and clearer Enforcing the Fair Debt Collection Practices Act: The CFPB will enforce the Fair Debt Collection Practices Act and review current debt collector practices Learn more about the CFPB
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