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Data is a part of a lot of conversations in both my professional and personal life. Everything around us is creating data – whether it’s usable or not is a business case for opportunity. Think about how many times a day you access the television, your phone, iPad or computer. Have a smart fridge? More data. Drive a car? More data. It’s all around us and can help us make more informed decisions. What is exciting to me are the new techniques and technologies, like machine learning, artificial intelligence and SaaS-based applications, that are becoming more accessible to lenders for use in managing their relationships with customers. This means lenders – whether a multi-national bank, online lender, regional bank or credit union – can make better use of the data they have about their customers. Let’s look at two groups – Gen-X and Millennials – who tend to be more transient than past generations. They rent not buy. They are brand loyal but will flip quickly if the experience or their expectations aren’t met. They live out their lives on social media yet know the value of their information. We’re just now starting to get to know the next generation, Gen Z. Can you imagine making individual customer decisions at a large scale on a population with so many characteristics to consider? With machine learning and new technologies available, alternative data – such as social media, visual and video data – can become an important input to knowing when, where and what financial product you offer. And make the offer quickly! This is a stark change from the days when decisions were based on binary inputs, or rather, simple yes/no answers. And it took 1-3 days (or sometimes weeks) to make an offer. More and more consumers are considering nontraditional banks because they offer the personalization and speed at which consumers have become accustomed.  We can thank the Amazons of the world for setting the bar high. The reality is – lenders must evolve their systems and processes to better utilize big data and the insights that machine learning and artificial intelligence can offer at the speed of cloud-based applications. Digitization threatens to lower profits in the finance industry unless traditional banks undertake innovation initiatives centered on better servicing the customer. In plain speak – banks need to innovate like a FinTech – simplify the products and create superior customer experiences. Machine learning and artificial intelligence can be a way to use data for making more informed decisions faster that deliver better experiences and distinguish your business from the next. Prior to Experian, I spent some time at a start-up before it was acquired by one of the large multi-national payment processors. Energizing is a word that comes to mind when I think back to those days. And it’s a feeling I have today at Experian. We’re taking innovation to heart – investing a lot in revolutionary technology and visionary people. The energy is buzzing and it’s an exciting place to be. As a former customer of 20 years turned employee, I’ve started to think Experian will transform the way we think about cool tech companies!

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 900 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.

Consumers and businesses alike have been hyper-focused on all things data over the past several months. From the headlines surrounding social media privacy, to the flurry of spring emails we’ve all received from numerous brands due to the recent General Data Protection Regulation (GDPR) going into effect in Europe, many are trying to assess the data “sweet spot.” In the financial services space, lenders and businesses are increasingly seeking to leverage enhanced digital marketing channels and methods to deliver offers and invitations to apply. But again, many want to know, what are the data rules and how can they ensure they are playing it safe in such a highly regulated environment. In an Experian-hosted webinar, Credit Marketing in the Digital Age, the company recently featured a team of attorneys from Venable LLP’s award-winning privacy and advertising practice. There’s no question today’s consumers expect hyper-targeted messages and user experiences, but with the number of data breaches on the rise, there is also the concern around data access. Who has my data? Is it safe? Are companies using it in the appropriate way? As financial services companies wrestle with the laws and consumer expectations, the Venable legal team provided a few insights to consider. While the digital delivery channels may be new, the underlying credit product remains the same. A prescreened offer is a prescreened offer, and an application for credit is still an application for credit. The marketing of these and other credit products is governed by an array of pre-existing laws, regulations, and self-regulatory principles that combine to form a unique compliance framework for each of the marketing channels. Adhere to credit regulations, but build in enhanced policies and technological protocols with digital delivery. With digital delivery of the offer, lenders should be thinking about the additional compliance aspects attached to those varying formats. For example, in the case of digital display advertising, you should pay close attention to ensuring delivery of the ad to the correct consumer, with suitable protections in place for sharing data with vendors. Lenders and service providers also should think about using authentication measures to match the correct consumer with a landing page containing the firm offer along with the appropriate disclosures and opt-outs. Strong compliance policies are important for all participants in this process. Working with a trusted vendor that has a commitment to data security, compliance by design, and one that maintains an integrated system of decisioning and delivery, with the ability to scrub for FCRA opt-outs, is essential. Consult your legal, risk and compliance teams. The digital channels raise questions that can and must be addressed by these expert audiences. It is so important to partner with service providers that have thought this through and can demonstrate a compliance framework. Embrace the multitude of delivery methods. Yes, there are additional considerations to think about to ensure compliance, but businesses should seek opportunities to reach their consumers via email, text, digital display and beyond. Also, digital credit offers need not replace mail and phone and traditional channels. Rather, emerging digital channels can supplement a campaign to drive the response rates higher. In Mary Meeker’s annual tech industry report, she touched on a phenomenon called the “privacy paradox” in which companies must balance the need to personalize their products and services, but at the same time remain in good favor with consumers, watchdog groups and regulators. So, while financial services players have much to consider in the regulatory space, the expectation is they embrace the latest technology advancements to interact with their consumers. It can be done and the delivery methods exist today. Just ensure you are working with the right partners to respect the data and consumer privacy laws.