Tag: data
Data can be a powerful tool. But the key to data isn’t just accessing it. It’s interpreting it — and using it to make better decisions that benefit your business and your customers. Here are four key areas where business leaders can use data in more meaningful ways to impact decisions: Grow your business — Reveal patterns, trends and associations to better evaluate business opportunities and respond to market fluctuations. Improve efficiency — Optimize operations and improve use of time to acquire more customers for less. Manage fraud and credit risk — The better you know your customers, the less risk you’ll have. Validate manually entered information — Determine the best actions to deliver the most effective outcomes for both existing and future customers. According to Forbes, by the year 2020 about 1.7 megabytes of new information will be created every second for every human being.1 Get the most out of our data-driven economy to remain competitive. Learn more> 1Bernard Marr, “Your enterprise competes to win. Does your digital infrastructure?,” Forbes, September 2015.
When it comes to vehicle history reporting, there are many offerings on the table. Some are better known than others, but only one comes from the global leader in data-driven solutions. AutoCheck® vehicle history reports are backed by Experian Information Solutions and have many key features that competitors don’t have. You and your customers can make more confident decisions knowing that the vehicle’s history is backed by data from Experian. Selling is made easier by providing greater transparency which strengthens consumer confidence in your inventory and brand to sell more cars. Below, we will help you better understand the value of AutoCheck throughout your dealership and take you through the five best practices for using AutoCheck. AutoCheck Best Practice #1: Integrate AutoCheck in all your dealership’s applications and websites. The good thing about AutoCheck is the ease of integration within a dealership’s applications and websites. AutoCheck works with hundreds of software providers, meaning it is highly flexible with whatever your dealership is using. It doesn’t matter if the user is a buyer, manager, technician, or any other role at a dealership. There are no additional costs for multiple users since there is an unlimited number of users for a dealership. If a dealership works with someone that AutoCheck doesn’t already work with, Experian will still set the dealership up and work with them to make sure they have a seamless integration. AutoCheck Best Practice #2: Run an AutoCheck on every vehicle acquisition. Since AutoCheck is a vehicle history reporting software, it can uncover unknown history that could pass off to a dealer or a consumer. AutoCheck checks for multiple owners, title brands, open recalls, previous auction announcements, prior vehicle uses, odometer fraud, accidents and so much more! The reason why this is so important comes down to the number of vehicles in operation. Per NADA Data, there were over 264 million cars and light-duty trucks in operation in the United States in 20161. If approximately 20% of the cars and light-duty trucks on the road have been in an accident, that is over 50 million vehicles currently on the road that have been in an accident². The average diminished value of a vehicle in an accident is $3,0193. Finding only one accident per month you did not know about justifies and pays for the cost of an AutoCheck subscription. AutoCheck Best Practice #3: Promote your inventory with AutoCheck. AutoCheck can also be used to directly promote a dealer’s inventory. All a dealer does is integrate AutoCheck with their dealership’s website. An AutoCheck link is automatically added to every vehicle. There is no additional charge which provides savings to both the dealer and the consumer. The most current data is provided with every click to give feedback to dealers. AutoCheck is the only vehicle history provider on all the top online shopping sites. Consumers can look for AutoCheck on Autotrader℠, Cars.com™, CarGurus®, ebay™ Motors, Edmunds®, and Kelly Blue Book®. AutoCheck Best Practice #4: Build confidence in every sale with AutoCheck. The patented AutoCheck Score is a numerical rating summarizing the events about the vehicle. This helps dealers and consumers to compare vehicles of similar class and age based on a scale of 1 to 100. It also predicts the likelihood the car will be on the road in 5 years. The Score helps to understand a vehicle’s reliability as it pertains to the vehicle’s age, number of owners and accidents. When comparing two vehicles, it is also important to look at the Similar Vehicles Score. Even though a vehicle may have a score of 89 compared to a similar vehicle which scored an 85, the first vehicle may have a score range of 91-96. This would mean the vehicle that scored an 89 is lower than the average. The AutoCheck Score is based on many variables including age, vehicle class, mileage, number of owners, and vehicle use and event. Along with the AutoCheck Score, the BuyBack Protection program from AutoCheck will help build confidence. Experian will buy back a vehicle if the AutoCheck report fails to list certain brands available to Experian at the time the report was issued. This program is up to 110% of NADA Guides retail value, plus up to $500 in aftermarket accessories. Registered and qualified vehicles have this protection available at no cost and will have a badge on their report. AutoCheck Best Practice #5: Promote your service department by providing service data. The final aspect and best practice focuses on the service department and service data. Dealers can display services they have performed within AutoCheck. With AutoCheck, dealers and consumers can see that a vehicle has been well maintained with reported service data. Reporting service data provides an easy to understand format for customers and builds confidence for shoppers. All-in-all, AutoCheck can be used in every department successfully. To recap, these are the five best practices for AutoCheck. Integrate AutoCheck in all your dealership’s applications and websites. Run an AutoCheck on every vehicle. Promote your inventory with AutoCheck. Build consumer confidence in every sale with AutoCheck. Promote your service department and display service records on AutoCheck. ¹Source: NADA DATA, Annual General Overview 2016, page 3. https://www.nada.org/2016NADAdataHighlights/ ²Source: Experian Analysis, more than 18 % of cars and light duty trucks in operation have been in an accident. 3Source: Mitchell Industry Trends Report, Q1 2017, page 32 http://www.mitchell.com/Portals/0/Assets/industry-trends/itr-vol-17-no-1-winter-2017-apd.pdf
Data driven insights about your marketplace are critical to your success. For instance, data can be used to determine if your customers are loyal or if they are likely to defect to another dealership. According to Experian research, there were 54 million consumer vehicle sales transactions in 2017. While that may sound great, not all returning buyers are loyal. In fact, we found that three out of four people are not dealer loyal. Even though only ¼ of a dealer’s customer base regularly return, the remaining ¾ can be conquested. 41 million non-dealer loyal vehicle sales happened in 2017, meaning there were 41 million chances to conquest for dealers across the country. You may be asking yourself “that’s interesting, but how do I win?”. Start with best in class data. At Experian, we work with our North American Vehicle Database℠, File One℠ Credit Database, and Consumer View℠ Marketing Database. These databases have information including the history of 800 million vehicles in the United States and Canada, 10 billion vehicle history records, to consumer data about credit inquiries and data attributes for consumers and households. Figuring out how to increase customer loyalty and conquesting becomes simple once you consider Experian’s solution: Auto HyperConnect™. Auto HyperConnect is the answer to the question of “how do I use my data to win my market?” Our Auto HyperConnect suite includes two different products. The first is Auto HyperMonitoring™ which improves customer loyalty. The second is Auto HyperTargeting™, which offers four different ways to conquest vehicle owners: through owners/service, expired leases, off-loan, and current vehicle equity. Since there is a lot to talk about regarding conquesting vehicle owners, this will be a basic overview and we will go into detail later. Experian goes beyond providing quality data to our clients- we are your partner in the discovery of critical information to drive your success. The first step in our Auto HyperTargeting methodology starts with discovery - working with an Experian Automotive representative to create the most effective conquest strategy. After that, quantify and understand what data is available and how similar records have performed historically. Next, execute the strategy by launching campaigns to communicate with prospective customers via direct mail, email, and phone, etc. Finally, measure and track results with quarterly marketing attribution reporting with Experian’s Auto Response Analysis With Auto HyperTargeting, these six product benefits help it to stand apart from the competition: Highly targeted audiences and attributes lists closely fit prospecting profiles. These profiles include geography, vehicle make, vehicle class, and lease maturity data. Append 1,500+ demographic attributes, 650+ psychographics, and 70+ Mosaic segments. Complete, accurate, and actionable data is delivered timely. Data derived from the source with proprietary processes ensure that it’s the highest quality and best coverage. Flexible marketing execution has no firm offer of credit required and customizable messaging for relevancy. Full visibility performance tracking has closed loop ARAs delivered quarterly with performance details. Performance driven audience hyper targeting approach gets dealers the closest to the customer as possible while saving time and money. Focusing on marketing strategy and tactics delivers results and eliminates waste from unproductive volume/cost opportunities. Finally, the competitive advantage takes market share away from the competition by identifying, engaging, and converting the right prospects. Briefly, here are the four different types of conquesting a dealer can do with Auto HyperTargeting: Expired Lease lets a dealer conquest new prospects based on customized input criteria including zip codes, vehicle makes and classes, and lease maturity data with the marketing flexibility necessary to drive engagement and win new customers. There is no firm offer of credit required. Vehicle Owners lets a dealer engage with current owners to enable new relationships and opportunities. These opportunities reach out to service and parts, aftermarket accessories, new/used car, warranty, insurance, and financial services. Vehicle Equity identifies, engages, and acquires new customers with positive vehicle equity status and maximizes sales opportunities. Getting consumers into a new vehicle, into re-finance solutions, into new loans, and get third party offers in front of consumers are all apart of vehicle equity. End of Loan connects dealers with consumers who are reaching the end of their loan term and help them transition into their new vehicle of choice. These include customized offers, getting consumers into a new vehicle, getting consumers into new loans, and getting third party offers in front of consumers. Juggling the requirements to both maintain customer loyalty and conquest for new ones can be difficult, but our Auto HyperConnect suite helps dealers to succeed at both. In our upcoming mini-series on conquesting with Auto HyperTargeting, we will detail it’s four core capabilities in more detail to help dealers to conquest with confidence.
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.
The auto industry is blessed with an abundance of data - market research, demand estimates, demographic trends, registration history, not to mention your dealership\'s own sales and inventory data. Dealers are often visual people - who love beautiful cars more than boring spreadsheets. The more visual you can make your data, the easier it will be to make decisions based on what it\'s telling you. Here are the five steps to being a data-driven dealer. 1. Where am I selling the most cars? You probably have a good instinct about where the \"hot spots\" are around your dealership. But there\'s a reason many dealers often display a map somewhere in the dealership, with pushpins representing recent new and used sales. It\'s a tried-and-true technique because there\'s no substitute for a visual representation of data, especially to get a good sense of where you\'re currently successful. More importantly, it will also help you answer a critical question - where should I be selling the most cars? By layering your web stats, such as Google Analytics, on top of your sales data, you can start to see whether your PPC spend is resulting in sales. Then layer on registration data to understand whether you\'re maximizing opportunity in your own backyard. You might already be selling a lot of cars into a town, but looking at your on-brand market share will help you determine if you\'ve fully penetrated the area. Looking at overall market activity, not just your own data, is required to understand where you fit into the bigger picture and decide upon your best sales strategy. 2. Where should we be conquesting? Once you\'ve confirmed that you\'re (hopefully) dominating in your town and those directly adjacent to you, it\'s time to turn your eye to how to take on competitive dealerships farther afield. Again, data can help you determine next steps and target your budget appropriately. Every dealership approaches and defines \"conquesting\" a little differently, but there are two common techniques that can be made much easier using recent registration statistics. First, look for ZIP Codes outside of your immediate PMA that are selling a high number of on-brand vehicles. These are your competitors\' happiest hunting grounds; focus on enticing shoppers in those areas to drive a little further to take advantage of special pricing or promotions, rather than attacking blindly in a 20-mile radius. 3. What is my best performing campaign now? No matter what your position is at the dealership, you need to know what\'s working best at any given moment. The GM needs to be able to make on-the-fly budgeting decisions, while the e-commerce Director wants to know which campaigns are working and what to do more of. But too often, the only objective measures we\'re regularly provided are traffic stats. Traffic is important, of course, but we\'d suggest there are three factors dealers should evaluate for every campaign. A campaign may be driving lots of shoppers to your site, but if they\'re immediately leaving the site, they aren\'t worth much for you. A high bounce rate is your first sign that something is amiss since shoppers aren’t finding what they were looking for on your site. A second-level analysis involves looking at what other pages visitors looked at after hitting the campaign landing page. For an offer focused on a specific vehicle, visitors should be moving on to look at inventory on VDP pages. Free oil change promotion? Visitors should be spending time on the service portion of your site. Work with your agency or internal e-commerce team to determine what content, language and images are the most effective at engaging potential buyers to take the desired action. Speaking of action, conversion rate is your single best measure of whether a campaign is performing to expectations. Just make sure you\'re measuring actions that matter: Form submissions, email leads, mobile clicks to call, and visits to hours and directions pages all indicate various levels of positive customer interest in beginning a dialogue. 4. How do I determine whether my traditional advertising spend is producing results? Measuring dealer marketing ROI can be challenging, especially for traditional advertising. History tells us that radio, TV, newspaper, and outdoor are successful in driving demand, but quantifying that effect can be an elusive goal. But there are methods that will get you closer to determine the effect of your traditional efforts on sales. By tagging the start dates of all your marketing activities and mapping them on a trendline of your traffic for your URLs, leads such as phone calls, chat, and coupon codes for your service department as well as sales, you\'ll get a good sense about whether your offline campaigns are generating online interest. 5. Who is my ideal customer? Once you understand which models are likely to move next month, your next question should be: \"Who am I selling to?\" You probably have a good sense of your typical customer profile for many models (there\'s a good chance you\'re showing minivans and SUVs to young families, for example). But do you know where those customers live? And how to best talk to them? There is an incredible amount of data available on consumers, from credit history to buying behavior to lifestyle preferences. So how do you make use of this rich consumer data? At a basic level, Experian data can tell you a lot about the residents of each ZIP Code surrounding your dealership - from average age, income, and number of children, all the way to the most prevalent Mosaic® profiles in each town. In a previous article, we talk about locating your ideal customer using Mosaic profiles. You might have a high number of \"American Royalty\" in one area, or an abundance of \"Sports Utility Families\" just a couple of towns over. This information can tell you not only where you might want to market particular models, but what medium and messaging will resonate best in each area. While only 15 miles apart, the Boston suburbs of Sudbury and Norwood are home to very different types of BMW buyers, suggesting vastly different marketing campaigns to best appeal to each. Data is a necessary tool for understanding your ideal customer, improving your marketing results, and selling more vehicles. These five steps to becoming a data-driven dealer address all your requirements to enrich your marketing and conquest more successfully.
Organizations that can mobilize their data assets to power critical business initiatives will see a distinct advantage in the coming years. In fact, most C-level executives (87%) believe data has greatly disrupted their organization’s operations over the past 12 months. Here are more insights from the newly released 2018 global data management benchmark report: As digital transformation efforts proliferate and become commonplace, organizations will need to implement processes and technology that scale with the demands of data-driven business. Read the full report
The auto industry has been riding a wave of prosperity for the past seven years, bouncing back nicely from the 2008 market collapse. But, it looks like rising sales of the past 10 years, are, well...a thing of the past. According to Alix Partners, 2016 sales of 17.5 million units might be the high-water sales mark, at least through 2022. Alix Partners says the next five years sales will range between 15.6 million to 16.8 million annually. Suddenly, it will be challenging for dealers to stay in strong growth mode. How can dealers best react to the tightening market? The Experian white paper “Data Tools Evolve to Give Dealers an Edge in a Tight Sales Market” takes a look at how new and improved data and analytic tools can provide deeper insights to help automotive retailers unlock sales. The paper reviews current market sales statistics, historical sales trends and how dealers reacted during similar market conditions in the past. In addition, the paper provides a look at the challenges faced by automotive retailers, in terms of shrinking gross profit, higher advertising expenses and increased competition. Automotive retailers also will find information on the importance of customer conquesting and a look at technology tools to help provide a deeper understanding and actionable intelligence about local markets. Data and analytics are no longer the private purview of large mega-dealers. The Experian white paper outlines today’s data tools that can be implemented quickly and cost effectively by dealers of any size. To learn more about these trends, download the paper here: https://www.experian.com/automotive/dealerwhitepaper.html
The collections space has been migrating from traditional mail and outbound calls to electronic payment portals, digital collections and virtual negotiators. Now that collectors have had time to test virtual collections, we’ve collected some data points. Here are a few: On average, 52% of consumers who visit a digital site will proceed to a payment schedule if the right offer is made. 21% of the visits were outside the core hours of 8 a.m. to 8 p.m., an indication that traditional business hours don’t always work. Of the consumers who committed to a payment plan, only 56% did it in a single visit. The remaining 44% did so mostly later that day or on a subsequent day. As more financial institutions test this new virtual approach, we anticipate customer satisfaction and resolutions will continue to climb. Get your debt collections right>
Call it big data, smart data or evidence-based decision-making. It’s not just the latest fad, it’s the future of how business will be guided and grow. Here are a few telling stats that show data is exploding and a new age is upon us: Data is growing faster than ever before, and we’re on track to create about 1.7 megabytes of new information per person every second by 2020. The social universe—which includes every digitally connected person—doubles in size every two years. By 2020, it will reach 44 zettabytes or 44 trillion gigabytes, according to CIO. In 2015, more than 1 billion people used Facebook and sent an average of 31.25 million messages and viewed 2.77 million videos each minute. More than 100 terabytes of data is uploaded daily to the social channel. By 2020, more than 6.1 billion smartphone users will exist globally. And there will be more than 50 billion smart connected devices in the world, all capable of collecting, analyzing and sharing a wealth of data. More than one-third of all data will pass through or exist in the cloud by 2020. The IDC estimates that by 2020, business transactions on the internet—business-to-business and business-to-consumer—will reach 450 billion per day. All of this new data means we’ll be looking at a whole new set of possibilities and a new level of complexity in the years ahead. The data itself is of great value, however, lenders need the right automated decisioning platform to store, collect, quickly process and analyze the volumes of consumer data to gain accurate consumer stories. While lenders don’t necessarily need to factor in decisioning on social media uploads and video views, there is an expectation for immediacy to know if a consumer is approved, denied or conditioned. Online lenders have figured out how to quickly capture and understand big data, and are expected to account for $122 billion in lending by 2020. This places more pressure on banks and credit unions to enhance their technology to cut down on loan approval times and move away from various manual touch points. Critics of automated decisioning solutions used in lending cite compliance issues, complacency by lenders and lack of human involvement. But a robust platform enables lenders to improve and supplement their current decisioning processes because it is: Agile: Experian hosts our client’s solutions and decisioning strategies, so we are able to make and deploy changes quickly as the needs of the market and business change, and deliver real-time instant decisions while a consumer is at the point of sale. A hosted environment also means reduced implementation timelines, as no software or hardware installation is required, allowing lenders to recognize value faster. A data work horse: Internal and external data can be pulled from multiple sources into a lender’s decisioning model. Lenders may also access an unlimited number of scores and attributes—including real-time access to credit bureau data—and integrate third-party data sources into the decisioning engine. Powerful: A robust decision engine is capable of calculating numerous predictive attributes and custom scoring models, and can also test new strategies against current decision models or perform “what if” simulations on historical data. Data collection, storage and analysis are here to stay. As will be the businesses which are savvy enough to use a solution that can find opportunities and learnings in all of that complex data, quickly curate the best possible actions to take for positive outcomes, and allow lenders and marketers to execute on those recommendations with the click of a button. To learn more about Experian’s decisioning solutions, you can additionally explore our PowerCurve and Attribute Toolbox solutions.
Risk analysts are insatiable consumers of big data who require better intelligence to develop market insights, evaluate risk and confirm business strategies. While every credit decision, risk assessment model or marketing forecast improves when it is based on better, faster and more current data, leveraging large data sets can be challenging and unproductive. That’s why Experian added a new functionality to its Analytical Sandbox, giving clients the flexibility they need to analyze big data efficiently. Experian’s Analytical Sandbox now utilizes H2O –an open source machine learning and deep learning platform that can model and predict with high accuracy billions of rows of high-dimensional data from multiple sources in various formats. Through machine learning and advanced predictive modeling, the platform enables Experian to better provide on-demand data insights that empowers analysts with high-quality intelligence to inform regional trends, provide consumer transactional insight or expose marketing opportunities. As a hosted service, Sandbox is offered as a plug-and-play, meaning no internal development is required. Clients can instantly access the data through a secure Web interface on their desktop, giving users access to powerful artificial and business intelligence tools from their own familiar applications. No special training is required. “AI monetizes data,” said SriSatish Ambati, CEO of H2O.ai. “Our partnership with Experian democratizes and delivers AI to the wider community of financial and risk analysts. Experian\'s analytics sandbox can now model and predict with high accuracy billions of rows of high-dimensional data in mere seconds.” Through H2O and the Experian Sandbox, machine learning and predictive analytics are giving risk managers from financial institutions of all sizes the ability to incorporate machine learning models into their own big data processing systems.
The consumer economy has evolved dramatically over the past few years — in large part due to technology and access to large amounts of data. Credit data, especially, can be a powerful asset for financial institutions in this new environment. More than 88 million U.S. consumers use their smartphone to do some form of banking. 67% of consumers made purchases across multiple channels in the last six months. With the help of data scientists, financial institutions can build models that crunch huge volumes of data and append their own customer data to drive portfolio management, customer acquisition and collections decisions across digital and mobile channels. Learn more>
As we kick off the new year, let’s take a look at some interesting things we learned about data quality in 2016. Our latest data quality report found some concerning statistics about companies and their data quality: 56% of organizations report losing sales opportunities due to bad data. 79% say data clearly ties directly to business objectives, but only 2% trust their data completely. 83% report that poor data quality impacts their business initiatives. Data is at the heart of your organization, and the quality of that data underpins the success of many of your business initiatives. Implementing a successful data quality program, therefore, is imperative to your organization’s future. Building a business case for data quality
Businesses believe that 23% of their customer or prospect data is inaccurate. Since 84% of companies have a loyalty or customer engagement program in place, poor data is a costly issue. The unfortunate reality is that 74% of companies have encountered problems with these programs — and 12% of revenue is believed to be wasted as a result. Is your loyalty program suffering from poor data? There is a cure. Think of data quality as preventative medicine for a costly and entirely avoidable illness. >>Learn more
Consumer card balance transfer activity is estimated to be $35 billion to $40 billion a year. How do lenders identify these consumers before they make transfers? By using trended data. While extremely valuable, trended data is very complex and difficult to work with. For example, with 24 months of history on five fields, a single account includes 120 data points. That’s 720 data points for a consumer with six accounts on file and 72 million for a file with 100,000 consumers — not to mention the other data fields in the file. Trended data allows lenders to effectively predict where a consumer is going based on where they’ve been. And that can make all the difference when it comes to smart lending decisions. >>What is trended data?
A recent Experian study on data insights found that 83% of chief information officers see data as a valuable asset that is not being fully exploited within their organization, resulting in the need for more organizations to appoint a dedicated chief data officer (CDO).
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