Tag: customer experience

To reach customers in our modern, diverse communications landscape, it's not enough to send out one-size-fits-all marketing messages. Today's consumers value and continue to do business with organizations that put them first. For financial institutions, this means providing personalized experiences that enable your customers to feel seen and your marketing dollars to go further. How can you achieve this? The answer is simple: a customer-driven credit marketing strategy. What is customer-driven marketing? Customer-driven marketing is a strategy that focuses on putting consumers first, rather than products. It means thinking about the needs, wants and motivations of the prospects you're trying to reach and centering your marketing campaigns and messages around that audience. When done well, this comprehensive approach extends beyond the marketing team to all members of a company. The benefits of customer-driven credit marketing One benefit of this type of personalized credit marketing is that you can target customers with a potentially higher lifetime value. By focusing your marketing efforts on the right prospects, you'll ensure that budgets are being spent wisely and that you're not wasting valuable marketing dollars communicating with consumers who either won't respond or aren't a fit for your business. Customer-driven marketing enables you to identify and reach the most profitable, highly responsive prospects in the most efficient way, while also engaging with current customers to optimize retention rates. When you create marketing programs that are customer-driven, you're not just selling; you're building relationships. Rather than being simply a service provider, you become a trusted financial partner and advisor. This kind of data-driven customer experience can help you onboard more customers and retain them for longer, translating to better results when it comes to your bottom line. Customer-driven marketing: How to get started Customer-driven marketing is less funnel, more spiral. You research, test, refine and repeat, all while taking into account customer feedback and campaign results. It starts with defining your target audience and creating customer personas. As you do this, think about all the factors that are involved in your target customers’ path to purchase, from general awareness and growing need to the final motivation that pushes them to commit. You'll also want to consider what their pain points may be and the barriers that may prevent them from buying. Next, develop a marketing strategy that aligns with your target customers' needs and outlines how and where you'll reach them. It may also be helpful to gather and respond to customer feedback to ensure the value propositions in your campaigns are aligned with customer expectations. These insights can help you refine your messaging, resulting in increased response and retention rates. Use the right data to extend relevant credit offers When you send credit offers, you want to ensure they're reaching the right prospects at the right time. You also want to make sure these credit offers are relevant to the consumers that receive them. That's where quality data comes in. By optimizing your data-driven customer segmentation, you can develop timely and personalized credit offers to boost response rates. For example, you might have a target audience of consumers who are both creditworthy and looking for a new vehicle. Segmenting this audience into smaller groups by demographic, life stage, financial and other factors helps you create credit marketing campaigns that speak to each type of customer as an individual, not just a number. Meet consumers on their preferred channels Nowadays, consumer behavior is more fragmented than ever. This is relevant not just from a demographic point of view, but from the perspective of purchasing behavior. Customer-driven marketing helps you interact with prospects as individuals so that the value propositions they encounter are a true fit for their life situation. For instance, different age groups tend to spend time on different platforms. But why they're on those channels at any particular time matters too. Messaging aimed at prospects in their leisure time should be different from messaging they'll encounter when actively researching potential purchases. Keep up with your customers This is one answer to the question of how to improve customer retention as well. Research demonstrates that it's more cost-effective to keep a customer than to acquire a new one. When you tailor retention efforts with a well-thought-out customer-driven marketing strategy, you're likely to boost retention rates, which in many cases lead to better profits over time. Importance of a customer-driven marketing strategy Putting consumers at the center of credit marketing strategies — and at the center of your business as a whole — is the foundation for personalized experiences that can ultimately increase response rates and customer satisfaction. For more on how your organization can develop an effective customer-driven marketing strategy, learn about our credit marketing solutions.

Despite economic uncertainty, new-customer acquisition remains a high priority in the banking industry, especially with increasing competition from fintech and big tech companies. For traditional banks, standing out in this saturated market doesn’t just involve enhancing their processes — it requires investing in the future of their business: Generation Z. Explore what Gen Z wants from financial technology and how to win them over in 2023 and beyond: Accelerate your digital transformation As digital natives, many Gen Zers prefer interacting with their peers and businesses online. In fact, more than 70% of Gen Zers would consider switching to a financial services provider with better digital offerings and capabilities.1 With a credit prescreen solution that harnesses the power of digital engagement, you can extend and represent firm credit offers through your online and mobile banking platforms, allowing for greater campaign reach and more personalized digital interactions. READ: Case study: Drive loan growth with digital prescreen Streamline your customer onboarding process With 70% of Gen Z and millennials having already opened an account online, it’s imperative that financial institutions offer a digital onboarding experience that’s quick, intuitive, and seamless. However, 44% of Gen Z and millennials state that their digital customer experience has been merely average, noting that the biggest gaps exist in onboarding and account opening.2 To improve the onboarding process, consider leveraging a flexible decisioning platform that accepts applications from multiple channels and automates data collection and identity verification. This way, you can reduce manual activity, drive faster decisions, and provide a frictionless digital customer experience. WATCH: OneAZ Credit Union saw a 25% decrease in manual reviews after implementing an integrated decisioning system Provide educational tools and resources Many Gen Zers feel uncertain and anxious about their financial futures, with their top concern being the cost of living. One way to empower this cohort is by offering credit education tools like step-by-step guides, score simulators, and credit alerts. These resources enable Gen Z to better understand their credit and how certain choices can impact their score. As a result, they can establish healthy financial habits, monitor their progress, and gain more control of their financial lives. By helping Gen Z achieve financial wellness, you can establish trust and long-lasting relationships, ultimately leading to higher customer retention and increased revenue for your business. To learn how Experian can help you engage the next generation of consumers, check out our credit marketing solutions. Learn more 1Addressing banking’s key business challenges in 2023.

A data-driven customer experience certainly has a nice ring, but can your organization deliver on the promise? What we're really getting at is whether you can provide convenience and personalization throughout the customer journey. Using data to personalize the customer journey About half of consumers say personalization is the most important aspect of their online experience. Forward-thinking lenders know this and are working to implement digital transformations, with 87 percent of business leaders stating that digital acceleration has made them more reliant on quality data and insights. For many organizations, lack of data isn't the issue — it's collecting, cleaning and organizing this data. This is especially difficult if your departments are siloed or if you're looking to incorporate external data. What's more, you would need the capabilities to analyze and execute the data if you want to gain meaningful insights and results. LEARN: Infographic: Automated Loan Underwriting Journey Taking a closer look at two important parts of the customer journey, here's how the right data can help you deliver an exceptional user experience. Prescreening To grow your business, you want to identify creditworthy consumers who are likely to respond to your credit offers. Conversely, it's important to avoid engaging consumers who aren't seeking credit or may not meet your credit criteria. Some of the external data points you can incorporate into a digital prescreening strategy are: Core demographics: Identify your best customers based on core demographics, such as location, marital status, family size, education and household income. Lifestyle and financial preferences: Understand how consumers spend their time and money. Home and auto loan use: Gain insight into whether someone rents or owns a home, or if they'll likely buy a new or used vehicle in the upcoming months. Optimized credit marketing strategies can also use standard (and custom) attributes and scores, enabling you to segment your list and create more personalized offers. And by combining credit and marketing data, you can gain a more complete picture of consumers to better understand their preferred channels and meet them where they are. CASE STUDY: Clear Mountain Bank used Digital Prescreen with Micronotes to extend pre-approved offers to consumers who met their predetermined criteria. The refinance marketing campaign generated over $1 million in incremental loans in just two months and saved customers an average of $1,615. Originations Once your precise targeting strategy drives qualified consumers to your application, your data-driven experience can offer a low-friction and highly automated originations process. Alternative credit data: Using traditional and alternative credit data* (or expanded FCRA-regulated data), including consumer-permissioned data, allows you to expand your lending universe, offer more favorable terms to a wider pool of applicants and automate approvals without taking on additional risk. Behavioral and device data: Leveraging behavioral and device data, along with database verifications, enables you to passively authenticate applicants and minimize friction. Linked and digital applications: Offering a fully digital and intuitive experience will appeal to many consumers. In fact, 81 percent of consumers think more highly of brands after a positive digital experience that included multiple touchpoints. And if you automate verifications and prefill applications, you can further create a seamless customer experience. READ: White paper: Getting AI-driven decisioning right in financial services Personalization depends on persistent identification The vast majority (91 percent) of businesses think that improving their digital customer journey is very important. And rightly so: By personalizing digital interactions, financial institutions can identify the right prospects, develop better-targeted marketing campaigns and stay competitive in a crowded market. DOWNLOAD: A 5-Step Checklist for Identifying Credit-Active Prospect To do this, you need an identity management platform that enables you to create a single view of your customer based on data streams from multiple sources and platforms. From marketing to account management, you can use this persistent identity to inform your decisions. This way, you can ensure you're delivering relevant interactions and offers to consumers no matter where they are. WATCH: Webinar: Omnichannel Marketing - Think Outside the Mailbox Personalization offers a win-win Although they want personalization, only 33 percent of consumers have high confidence in a business' ability to recognize them repeatedly.4 To meet consumer expectations and remain competitive, you must deliver digital experiences that are relevant, seamless, and cohesive. Experian Consumer View helps you make a good first impression with consumer insights based on credit bureau and modeled data. Enrich your internal data, and use segmentation solutions to further refine your target population and create offers that resonate and appeal. You can then quickly deliver customized and highly targeted campaigns across 190 media destinations. From there, the Experian PowerCurve® Originations Essentials, an automated decisioning engine, can incorporate multiple external and internal data sources to optimize your strategy. *Disclaimer: When we refer to “Alternative Credit Data," this refers to the use of alternative data and its appropriate use in consumer credit lending decisions, as regulated by the Fair Credit Reporting Act. Hence, the term “Expanded FCRA Data" may also apply in this instance and both can be used interchangeably.

In a dynamic, consumer-driven market, speed and agility are essential to providing seamless customer experiences. However, many financial institutions are still relying on legacy processes and systems to acquire new customers, leading to slow decision-making and significant customer dropout. Experian surveyed over 6,000 consumers and 1,800 businesses worldwide to gain insights into the latest digital consumer trends and key business priorities. Here are some findings to consider if you’re looking to refine your customer acquisition strategy: 40% of businesses consider investing in more digital and automated operations a priority. From application processing to identity verification, many lenders are still performing customer onboarding tasks manually. To increase efficiency and digital acquisition, forward-thinking businesses are focusing on flexible, data-driven technologies that enable centralized, automated, and scalable decision-making. 58% of consumers don’t feel that businesses completely meet their digital online experience. With today’s consumers expecting instant responses, lenders must ensure they’re providing quick and seamless credit application experiences. A nimble decisioning platform can help by providing lenders with greater visibility into consumers through automated data connectivity, allowing them to drive faster, more informed decisions digitally. For more consumer and business trends, download our infographic and check out our customer acquisition solution to learn how to optimize your customer acquisition strategy. Access infographic Power your customer acquisition process

With an abundance of loan options in today’s market, retaining customers can be challenging for banks and credit unions, especially small or regional institutions. And as more consumers look for personalization and digital tools in their banking experience, the likelihood of switching to institutions that can meet these demands is increasing.1 According to a recent Experian survey, 78% of consumers have conducted personal banking activities online in the last three months. However, 58% of consumers don’t feel that businesses completely meet their expectations for a digital online experience. To remain competitive in today's market, organizations must enhance their prescreen efforts by accelerating their digital transformation. Prescreen in today's economic environment While establishing a strong digital strategy is crucial to meeting the demands of today’s consumers, economic conditions are continuing to change, causing many financial institutions to either tighten their marketing budgets or hold off on their prescreen efforts completely. Fortunately, lenders can still drive growth during a changing economy without having to make huge cuts to their marketing budgets. How? The answer lies in digital prescreen. Case study: Uncover hidden growth opportunities Wanting to grow their business and existing relationships, Clear Mountain Bank looked for a solution that could help them engage customers with money-saving product offers while delivering a best-in-class digital banking experience. Leveraging Digital Prescreen with Micronotes, the bank was able to identify and present dollarized savings to customers who held higher-priced loans with other lenders. What’s more, the bank extended these offers through personalized conversations within their online and mobile banking platforms, resulting in improved digital engagement and increased customer satisfaction. By delivering competitive prescreen offers digitally, Clear Mountain Bank generated more than $1 million in incremental loans and provided customers with an average of $1,615 in cost savings within the first two months of deployment. “Digital Prescreen with Micronotes supplied the infrastructure to create higher-quality, personalized offers, as well as the delivery and reporting. They made prescreen marketing a reality for us.” – Robert Flockvich, Director of Community Outreach and Retail Lending at Clear Mountain Bank To learn more about how you can grow your portfolio and customer relationships, read the full case study or visit us. Download the case study Visit us 1The Keys to Solving Banking’s Customer Loyalty & Retention Problems, The Financial Brand, 2022.

  Kathleen Peters, Chief Innovation Officer, Decision Analytics for Experian, was recently featured on the Eliances Heroes podcast as part of the new weekly segment, the “Experian Identity Report.” In the introductory show, podcast host David Cogan, spoke with Kathleen about why identity is so important to our society. Listen to the podcast for the full discussion and see the transcript below. Learn more about Experian Identity David Cogan: How critical is it? Well, I’ll tell you. Payment fraud will exceed $206 billion in the next five years and let’s face it. Managing one’s personal identity is very complicated on its own and if the business enterprise managing customer identities in a strategic and secure way and scale across countless interaction is extremely complicated. And it’s only going to get more complex with the future from what I understand and all the technology that’s coming out if not by the day, by the hour. And that’s why we’re bringing this to you. Interviews with the world’s leading experts on the game changing impact of identity and the need to use reliable data to make confident decisions that securely accelerate customer engagement and that’s why we’re honored here today to have with us Kathleen Peters, Chief Innovation Officer, Experian Decision Analytics North America. Kathleen Peters: Thanks so much David, it’s great to be here with you. DC: $206 billion of payment fraud in the next five years? I mean who’s going to want to turn on their computer after this. That is a serious number. What do we do? KP: It’s really important that we get our arms around this both as consumers as well as businesses because we want to engage online. So much of what we’re doing is digital. It especially started in COVID when we were having our groceries delivered and everything else and even our grandparents are having to do their banking transactions online. The world is changing, and fraudsters take notice of that as well. Fraudsters are opportunistic and when they see a bunch of folks doing stuff online that they’ve never done before, they’re seeing that as an opportunity too. DC: You know the days of people horseback riding and overtaking trains are long gone and now it’s all digital. KP: It’s a lot easier these days. DC: Why is identity so important to our daily digital lives and in business? KP: It’s a great question, David. And as a consumer myself, you, and I when we transact online whether that’s to have food delivered, or I’m buying something for my kids or I’m even paying a bill, I want to be able to trust that my information will be safe, that my privacy will be protected and that my experience will be as smooth as possible. I think that’s what we all want. So as consumers and as businesses, how do we enable all the opportunities this new digital world is presenting to us in a way that we are safe and also businesses can transact with us securely and have confidence on who’s engaging with them online. DC: Let’s talk about identity. What really makes identity so challenging to manage at a business enterprise level especially with how complex the business portion is? KP: Absolutely. It really comes down to there are so many elements that comprise our identity. It’s multidimensional. So historically, when we think about identity, we probably think about the things that were on our DL or passport the kind of information that’s pretty static – name, address, SSN, date of birth – those kinds of things. Once we get online, that identity becomes a little more challenging. We’re not necessarily physically in front of the business that we’re engaging with so the business needs to determine if the person is who we say we are. There’s a famous Far Side comic from years ago where a dog is sitting in front of the computer and he says “On the internet, no one knows you’re a dog.” And that still rings true in that you need to be able to ensure that the customer that’s coming to your business online is a real person and not a bot, is a person with good intent and not a fraudster. You need to look no farther than some of the recent controversies around Twitter and Elon Musk’s on-again, off-again, on-again intent to buy the company. A few months ago he had pulled back because he wanted to know definitively how many users on Twitter are humans versus bots and sometimes determining that can be really hard. And that comes down to managing all these new definitions of identity. DC: That’s very important. The thing is businesses and consumers want to know really what to be able to do. So, what kinds of things is Experian able to offer to help with all of that? KP: We’re in a great position as Experian because we have such a depth and breadth of identity data. We have the analytics horsepower and really touchpoints that are really unique when it comes to thinking about identity. So we’ve been talking about these traditional identity elements and digital, online identity. When you think about it, Experian also really understands your financial identity. So when you bring those things together and a consumer is looking to maybe understand what their financial identity means, their credit score or even how to improve their credit score, Experian’s there. We’ve got a robust direct to consumer business, we’ve got offerings like Boost and Go that help people establish and build their credit. We’ve got marketplaces for cards, insurance, etc. And then when consumers want to open a new account at a financial institution, or a fintech, or a retailer, or even maybe buy some crypto or log into a business, Experian can bring that wealth of capability to help our clients, help businesses, separate those good consumers with good intent from the fraudsters and do that very quickly and efficiently so that consumers can have a great experience and build that trust with who they’re engaging with. DC: Kathleen, that’s really amazing. Alright, now with all of that going on, what is Experian doing now with innovating for the identity space? KP: This is a real passion of mine David and this is where I spend a lot of my time. We’re always looking ahead to see what is the new data, new capabilities that can help us improve that consumer experience and engagement, help clients find the right consumers online to engage and target, and really allow our clients to grow their businesses safely. So, we’re building some products in house, where we’re connecting new pieces that might be new to Experian like linking some of that traditional identity data with particular payment instruments. Is this Kathleen’s credit card? Is this my bank account? When I come and try to do transactions online. But we’re also partnering with new companies. There are a number of startups that are being formed that have been in business looking at new ways to stop fraud and new ways to help identify and authenticate users online. So, as we innovate, we’re building some things in house, we’re partnering, we’re investing in young companies, and sometimes we’re even acquiring. So, bringing together that breadth of data, analytics, really trying to think about what will be the next way that we’ll think about identifying ourselves online is some of the ways we’re innovating. DC: Well, we’re very fortunate to have you and your company here to be able to do that because it’s growing by leaps and bounds. I’m amazed by the number $206 billion which is probably going to go higher, so we’re very fortunate that Experian is around and really identifying this issue and trying to do something now. What do you think our audience will learn about these weekly, critical chats about identity with Experian experts? KP: These are going to be great conversations that we’re going to be able to share and talk about how rapidly things are changing and evolving and how this really relates to our daily lives and the things that are going on in this very dynamic economic climate, digital climate, the way things are changing the way we’re engaging. I think people are also going to learn a lot about Experian’s mission around financial inclusion and opportunity creation. We’re a very mission driven company and we’re the consumer’s bureau, so we want to do this journey in partnership with consumers so that you can take an active part in protecting yourself, understanding what’s going on, helping us fight fraud, but also just really be able to take advantage of all of these new opportunities in a safe way.

With consumers having more credit options than ever before, it’s imperative for lenders to get their message in front of ideal customers at the right time and place. But without clear insights into their interests, credit behaviors or financial capacity, you may risk extending preapproved credit offers to individuals who are unqualified or have already committed to another lender. To increase response rates and reduce wasted marketing spend, you must develop an effective customer targeting strategy. What makes an effective customer targeting strategy? A customer targeting strategy is only as good as the data that informs it. To create a strategy that’s truly effective, you’ll need data that’s relevant, regularly updated, and comprehensive. Alternative data and credit-based attributes allow you to identify financially stressed consumers by providing insight into their ability to pay, whether their debt or spending has increased, and their propensity to transfer balances and consolidate loans. With a more granular view of consumers’ credit behaviors over time, you can avoid high-risk accounts and focus only on targeting individuals that meet your credit criteria. While leveraging additional data sources can help you better identify creditworthy consumers, how can you improve the chances of them converting? At the end of the day, it’s also the consumer that’s making the decision to engage, and if you aren’t sending the right offer at the precise moment of interest, you may lose high-value prospects to competitors who will. To effectively target consumers who are most likely to respond to your credit offers, you must take a customer-centric approach by learning about where they’ve been, what their goals are, and how to best cater to their needs and interests. Some types of data that can help make your targeting strategy more customer-centric include: Demographic data like age, gender, occupation and marital status, give you an idea of who your customers are as individuals, allowing you to enhance your segmentation strategies. Lifestyle and interest data allow you to create more personalized credit offers by providing insight into your consumers’ hobbies and pastimes. Life event data, such as new homeowners or new parents, helps you connect with consumers who have experienced a major life event and may be receptive to event-based marketing campaigns during these milestones. Channel preference data enables you to reach consumers with the right message at the right time on their preferred channel. Target high-potential, high-value prospects By using an effective customer targeting strategy, you can identify and engage creditworthy consumers with the greatest propensity to accept your credit offer. To see if your current strategy has what it takes and what Experian can do to help, view this interactive checklist or visit us today. Review your customer targeting strategy Visit us

There’s no doubt that fraudulent transactions can end up costing businesses money , which have led many to implement risk-mitigation strategies across every stage of the purchasing journey. However, this very same protection can increase false declines, and the associated friction can create high rates of cart-abandonment and negative impacts for a business’s brand. What is a false decline? A false decline is a legitimate transaction that is not completed due to suspected fraud or the friction that occurs during verification. False declines occur when a good customer is suspected of fraud and then prevented from completing a purchase. This happens when a company’s fraud prevention solution provides inadequate insight into the identity of the customer, flagging them as a potential bad actor. The result is a missed sale for the business and a frustrating transaction and experience for the customer. Are false declines costing your business money? False declines have high revenue and cost consequences for e-commerce marketplace merchants. By denying a legitimate customer purchase at checkout, businesses risk: Loss of new sales directly impacting revenue 16% of all sales are rejected by e-commerce merchants unnecessarily costing businesses ~$11B in sales annually,1 with an estimated 70% of unwarranted friction as a contributing cause. Loss in customer loyalty and lifetime value Blocked payments can leave customers with a poor impression of your business and there’s a good chance they’ll take their business elsewhere. Tarnished business reputation Today’s customers expect businesses and online services to work seamlessly. 81% of consumers say a positive experience makes them think more highly of a brand. Therefore, your brand might take a hit if unnecessary obstacles prevent them from having a good experience. High operational overhead costs The average business manually reviews 16% of transactions for fraud risk. It is estimated that 10 minutes are needed for each review. This inefficiency can be costly as it takes time away from fraud teams who can work on higher priority or strategic initiatives. Businesses can benefit from a seamless and secure payment experience that drives real-time resolution and eliminates a majority of false declines and bottlenecks, ultimately helping increase approval rates without increasing risk. Get started with Experian Link™ - our frictionless credit card owner verification solution. Learn more 1"E-Commerece Fraud Enigma: The Quest to Maximize Revenue While Minimizing Fraud Report" Aite-Novarica Group, July 2022

To drive profitable growth and customer retention in today’s highly competitive landscape, businesses must create long-term value for consumers, starting with their initial engagement. A successful onboarding experience would encourage 46% of consumers1 to increase their investments in a product or service. While many organizations have embraced digital transformation to meet evolving consumer demands, a truly exceptional onboarding experience requires a flexible, data-driven solution that ensures each step of customer acquisition in financial services is as quick, seamless, and cohesive as possible. Otherwise, financial institutions may risk losing potential customers to competitors that can offer a better experience. Here are some of the benefits of implementing a flexible, data-driven decisioning platform: Greater efficiency From processing a consumer’s application to verifying their identity, lenders have historically completed these tasks manually, which can add days, if not weeks, to the onboarding process. Not only does this negatively impact the customer experience, but it also takes resources away from other meaningful work. An agile decisioning platform can automate these tedious tasks and accelerate the customer onboarding process, leading to increased efficiency, improved productivity, and lower acquisition costs2. Reduced fraud and risk Onboarding customers quickly is just as important as ensuring fraudsters are stopped early in the process, especially with the rise of cybercrime. However, only 23% of consumers are very confident that companies are taking steps to secure them online. With a layered digital identity verification solution, financial institutions can validate and verify an applicant’s personal information in real time to identify legitimate customers, mitigate fraud, and pursue growth confidently. Increased acceptance rates Today’s consumers demand instant responses and easy experiences when engaging with businesses, and their expectations around onboarding are no different. Traditional processes that take longer and require heavy documentation, greater amounts of information, and continuous back and forth between parties often result in significant customer dropout. In fact, 40% of digital banking consumers3 abandon opening an account online due to lengthy applications. With a flexible solution powered by real-time data and cutting-edge technology, financial institutions can reduce this friction and drive credit decisions faster, leading to more approvals, improved profitability, and higher customer satisfaction. Having a proper customer onboarding strategy in place is crucial to achieving higher acceptance and retention rates. To learn about how Experian can help you optimize your customer acquisition strategy, visit us and be sure to check out our latest infographic. View infographic Visit us 1 The Manifest, Customer Onboarding Strategy: A Guide to Retain Customers, April 2021. 2 Deloitte, Inside magazine issue 16, 2017. 3 The Financial Brand, How Banks Can Increase Their New Loan Business 100%, 2021.

  In today’s evolving and competitive market, the stakes are high to deliver both quantity and quality. That is, to deliver growth goals while increasing customer satisfaction. OneAZ Credit Union is the second largest credit union in Arizona, serving over 157,000 members across 21 branches. Wanting to fund more loans faster and offer a better member experience through their existing loan origination system (LOS), OneAZ looked to improve their decisioning system and long-standing underwriting criteria. They partnered with Experian to create an automated underwriting strategy to meet their aggressive approval rate and loss rate goals. By implementing an integrated decisioning system, OneAZ had flexible access to data credit attributes and scores, resulting in increased automation through their existing LOS – meaning they didn’t have to completely overhaul their decisioning systems. Additionally, they leveraged software that enabled champion/challenger strategies and the flexibility to manage their decision criteria. Within one month of implementation, OneAZ saw a 26% increase in loan funding rates and a 25% decrease in manual reviews. They can now pivot quickly to respond to continuously evolving conditions. “The speed at which we can return a decision and our better understanding of future performance has really propelled us in being able to better serve our members,” said John Schooner, VP Credit Risk Management at OneAZ. Read our case study for more insight on how automation and PowerCurve Originations Essentials can move the needle for your organization, including: Streamlined strategy development and execution to minimize costly customizations and coding Comprehensive data assets across multiple sources to ensure ID verification and a holistic view of your prospect Proactive monitoring and real-time visibility to challenge and rapidly adjust strategies as needed Download the full case study

While many view Millennials and Gen Z through the same lens, savvy automotive marketers are adjusting their strategies to capture the market of this generation.

With consumers having more banking options than ever before, loyalty has become the most valuable currency for financial institutions (FI). As fintechs and big tech companies continue to roll out innovative banking and payment options, traditional FIs must rethink their strategies to drive new business, retain existing customers and remain competitive. According to a recent Mintel report, rewards, transparency and customer service are the top three constants when it comes to building loyalty. Here’s how financial institutions can deliver on these fronts to create and maintain lasting customer relationships: Rewards programs and incentives Rewards have long been a key customer retention strategy, with 39% of consumers stating they would remain loyal to their financial service providers if they offered incentives and rewards. While traditional rewards programs that offer points or cash back on everyday purchases remain popular, many companies are expanding beyond the conventional rewards structure to attract new customers and stand out from the competition. For example, one California-based startup enables its cardholders to earn points at every winery, wine club or wine shop, while a health and wellness company rewards its cardholders with extra cash back when they meet their weekly fitness goals. To build and maintain customer loyalty, FIs can follow suit by incentivizing positive financial behavior, such as offering points to customers when their credit score increases or when they reach their monthly savings goal. Being rewarded for improving their financial health can encourage customers to continue making positive and responsible financial decisions. When customers see how much their financial institution invests in their financial well-being, they are more likely to remain loyal to the brand. Nurturing existing customers through rewards programs is also more cost-effective than acquiring new ones. Rewards program members spend 5-20% more than non-members on average, which not only covers operating costs but leads to increased sales and revenue. Transparency over fees Beyond rewards programs and incentives, many FIs have created innovative tools to help customers avoid overdraft fees, such as real-time alerts for low balances. To take it a step further, some have eliminated these fees altogether. While overdraft fees can be an easy source of revenue for financial institutions, they are a pain point for customers, especially for those who are financially vulnerable. Rather than continuing to be saddled with hefty penalties, customers are likely to switch to providers that are more upfront about their fees or have eliminated them outright. To avoid losing current and prospective customers to new competition, FIs need to be more transparent and work toward establishing fairer practices. Quick, friendly, and accessible customer service With today’s consumers having increased expectations for easy, convenient and accessible customer service, many FIs have refined their strategies by becoming digital-first. When customers have a question or concern, they can engage with financial institutions at any time through digital channels, including chat, email or social media. Being accessible at any hour of the day to assist their customers provides FIs with a great opportunity to build trust, loyalty and a positive reputation. By providing exceptional customer service, compelling rewards and being transparent, financial institutions have the power to create long-lasting customer relationships. Learn more about what you can do to retain your best customers or check out how to build lifetime loyalty with Gen Z. Learn more Build loyalty with Gen Z

Who said that direct mail was dead? Though consumers have flooded to digital channels since the onset of the pandemic, with 55% now having a higher expectation of their customer experience, traditional methods shouldn't be cast aside. On the other hand, sending printed mail without adapting to consumer demands may leave recipients disengaged and less likely to act. So, where does that leave marketers? How can businesses create a balance between traditional and digital credit marketing? Before diving into that discussion, it’s important to note that direct mail is still effective and when done right, can help businesses win the hearts and wallets of today’s consumers. According to the U.S. Postal Service’s (USPS) Certified Direct Mail Professional (CDMP) program, 79% of households say they read their daily mail, while 70% of recipients are curious to find out what’s in their mailbox. So, how can credit card marketers capitalize on these trends to generate higher response rates and returns from their direct mail campaigns? It’s simple – businesses must weave interactive elements and technology into their direct mail pieces to make them more effective and engaging. Here’s how credit card issuers are leveraging technology to level up their direct mail campaigns: QR codes QR codes, which allow consumers to read restaurant menus and make touchless payments with their mobile devices, have become a global sensation, with the number of interactions having grown 94% between 2018-2020. More recently, credit card marketers have included interactive QR codes into their direct mail pieces, allowing recipients to learn more about the offer, download their mobile app or quickly apply for a credit card. A few brands took it a step further by matching their QR codes with the colors of their logos to add more brand recognition and personalization. Voice Activated Call to Action (VACTA) According to Mintel, over 25% of U.S. adults own at least one smart speaker. To capitalize on this trend, many credit card issuers have included a Voice Activated Call to Action (VACTA) in their direct mail pieces. A VACTA allows recipients to respond to direct mail offers verbally by using their Amazon Alexa or Google Assistant device. Instead of reaching for their smartphones or laptops, consumers can call out to their smart speaker with the offer code. This low-effort, hands-free method is a quick and convenient way for consumers to engage with businesses as it enables them to respond to offers even when they are performing other tasks. Once their smart speaker receives the code, a link is then sent to the consumer’s phone so that they can examine the offer at any time. Giving consumers more flexibility enhances their experience and increases the chances of them responding to future offers. Additionally, including a VACTA in direct mail pieces allows marketers to manage, track and optimize their marketing campaigns in real-time. Because VACTAs make offers immediately redeemable, businesses can easily measure the performance and effectiveness of each direct mail piece. Informed Delivery emails What better way to build anticipation and excitement for direct mail offers than to give consumers a sneak peek of what’s to come? USPS’s Informed Delivery is a service that allows consumers to digitally preview their direct mail before it arrives in their physical mailbox. Until the physical mail piece is delivered, consumers can look at what the mailing might reveal or offer to them through email, an online dashboard or a mobile app. The best part? Informed Delivery emails meet today’s consumer expectations for convenient digital experiences as they are available to view them anytime, anywhere. Currently, one in five households has an Informed Delivery participant. What’s more, the average open rate for an Informed Delivery email is nearly 70%. By incorporating Informed Delivery into direct mail campaigns, businesses can generate additional impressions, improve customer engagement and drive more conversions. Doing direct mail, the right way Direct mail isn’t outdated, antique or ineffective – it has evolved and adapted to meet the expectations of today’s consumers. The use of QR codes, VACTA and USPS Informed Delivery, are just a few examples of how credit card marketers are leveraging digital enhancements to improve the success of their direct mail campaigns. While it’s clear that direct mail is still an effective way to reach consumers, businesses should not overlook the power of digital marketing. Expectations for seamless and connected digital experiences are higher than ever, making it crucial for businesses to develop strong digital marketing strategies. By engaging with consumers in the way that works best for them, with the right messages at the right time, you can drive more opportunities, reduce costs and deliver exceptional customer experiences. Learn more Download white paper

Experian’s newest Global Insights Report found that consumers are online 25% more today than they were just a year ago, highlighting the importance of the digital customer experience. To acquire customers and retain their loyalty, businesses need to focus on improving the online experience, preventing fraud, and managing credit risk.   This September, Experian surveyed 3,000 consumers and 900 businesses across all industries to explore business priorities and recent changes in consumer activities.   Many businesses and consumers are reportedly feeling more economically stable now than they were a year ago. As consumers resume spending the digital customer experience becomes even more paramount – requiring businesses to invest in scalable software solutions that will accurately assess credit risk and meet ever-changing needs and priorities.   Our research found that:   42% of consumers have increased concern for the safety of banking and shopping transactions Business adoption of advanced analytics has increased over last year, and adoption of artificial intelligence is up from 69% to 74% Consumers are more likely to share their personal data if it improves their experience, with 56% willing to share their contact information The top three consumer priorities continue to be security, privacy and convenience   Download the report to get all the latest insights into consumer desires and business behaviors as we move further through the digital evolution. Download the report

Chatbots, reduction of manual processes and explainability were all hot topics in a recent discussion between Madhurima Khandelwal, Vice President and Head of DataLabs at American Express®, and Eric Haller, Executive Vice President and head of Experian DataLabs. The importance of AI’s role in innovation in the financial services space was the focus of the recent video interview. In the interview, Khandelwal highlighted some of the latest in what American Express DataLabs is working on to continue to solve complex challenges by building tools driven by AI and Machine Learning: Natural language processing has come a long way in even the last few years. Khandelwal discussed how chat bots and conversational AI can automate the simple to complex to enhance customer experience. Document recognition and processing is another leading-edge innovation that is useful for extracting and analyzing information, which saves staff countless manual hours, Khandelwal said. Fairness and explainability are consistently brought to the forefront especially in financial services as regulators are looking at ways to prevent AI/ML from causing bias for the consumer. Khandelwal showcased how there is extreme rigor in each part of creating their models and how human oversight and training are primary drivers for how they stay on top of this. As for innovation advice, Khandelwal points out that it’s important to be aware that AI and innovation are not always interchangeable, and companies need to think through whether a problem needs to be solved through AI/ML models before charting ahead. Another major key to the equation is the data. In all use cases, the undercurrent of innovation in any form is dependent on the data being used. Learn more about this topic and what Harry Potter has to do with women in data science. Watch the Interview