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Updated November 17th Related Posts Link to automotive form, business form

Discover how token-based authentication works, its types, and why businesses trust it to secure sensitive data.

Discover how data and analytics can enhance deposit growth strategies, improve customer engagement, and drive financial wellness for banks and credit unions.

More prospects equal more profits, right? Not necessarily. But surprisingly, companies in every industry (including cable and telecom) routinely burn acquisition dollars as if it is. The reality is that only more qualified prospects can lead to more profitable campaigns, making acquisitions a clear case of quality besting quantity. But why? No substitute for quality Engaging unqualified prospects is an unprofitable exercise requiring time and resources that are better spent on those who are ready, willing and able to buy from you. Benefits of an effective acquisition strategy include greater: Resource efficiency—less time, money and energy wasted on no-payback prospects Brand loyalty and higher lifetime value—by accurately matching consumers to products they relate to and desire Profitability and less bad debt—this one is probably obvious Fishing where the (best) fish are So how should a profit-minded telecom or cable company identify highly qualified prospects and invite them into the fold? Using a credit-score threshold, where anyone possessing the target score receives an offer, is one method. The benefit is simplicity. One disadvantage is unnecessary risk, as credit score is just one factor reflecting an individual’s creditworthiness. Another possibility is analyzing your best customers’ profiles or most profitable underwriting policies and integrating profit-building criteria into your campaign. This takes a little more effort but the payback potential is higher. Tapping into available sources Many companies find public records a rich source of decisioning data. Others have discovered that adding consumer-credit information to their acquisition formula not only improves prospect quality, it also reduces on-boarding costs. Derogatory payment information, revolving debt levels or unacceptable debt-to-income ratios will all surface in the process, informing and improving your credit management decisions. (Note: using credit data to assess risk requires you to make a firm offer of credit, according to FCRA guidelines.) You’ll do a lot of prospecting in 2011, so remember: when it comes to acquiring new customers, more isn’t better. Better is better. And using reliable, high-quality data is one way to ensure the impact and return of every marketing dollar.

Experian Decision Analytics has recorded increased demand from the marketplace for service integrations with interactive voice response (IVR), a phone technology that allows for automated detection of both voice and touch–tones. In the past quarter, there has been a more than 70 percent increase in IVR interest and it continues to grow. Why is there a demand for knowledge based authentication through IVR? Besides consumer acceptance of out of wallet questions, there is a dramatic increase in the need for remote authentication and fraud analytics that are accurate, not a burden to the consumer, cost–effective for organizations and part of an overall risk based authentication approach. Consumers stay connected in a number of ways — phone, online, mobile and short message service (SMS) — and are demanding the means to remain safe without compromising convenience. Knowledge based authentication through IVR provides this safety. Organizations must consider all the tools at their disposal to keep consumer data protected while preserving and promoting a positive customer experience. Given the interactive nature of knowledge based authentication, it is quite adaptable to various customer access channels, such as IVR, and it enables full automation of both inbound and outbound authentication calls. We know from both our own experience and from working with clients that consumers are more connected, more mobile and more networked than ever before – and fraud trends demonstrate this increases risk. As consumers continue to expand online profiles and fraud artists continue to seek out victims, successful fraud prevention will become paramount to financial survival. Leveraging products already in use by combining the technology capitalizes on an existing investment and is good business.

Cybersecurity is back in the news, thanks in no small part to a number of government reports and developments with WikiLeaks. It’s also becoming increasingly important to businesses and lawmakers alike. Although not a new concern for the telecommunications industry, cybersecurity is quickly becoming a priority for the new Congress as pressure increases to develop a national plan. What should cybersecurity protect? A national cybersecurity plan would likely entail setting baseline security standards to protect critical networks – many of which are run by private organizations. For policymakers, the challenge will be to craft guidelines that protect consumer data and still allowing technological innovation. Last year, we saw a number of legislative proposals debated before Congress that would place new requirements on network infrastructure and strengthen coordination between federal regulators. So far, the proposals have been broad and have only raised additional questions. The hurdle for lawmakers will be addressing how existing data protection laws fit within new proposals in order that businesses do not face over burdensome requirements. Where does the FCC fit in? When it comes to cybersecurity, the role of the FCC is even more undefined – however that’s changing. Last summer, the FCC asked for public comments about the creation of a Cybersecurity Roadmap to identify vulnerabilities to communications networks and to develop countermeasures and solutions to cyber threats. The roadmap was first recommended as part of a broader strategy to create a National Broadband Plan that required the FCC to identify the five most critical security threats and establish a two-year plan to address them. While the Commission has accepted public comments, it’s unclear when a final Roadmap will be introduced. A national breach notification standard As part of a comprehensive plan, policymakers are also looking at what happens after a breach occurs. Currently, 46 states have passed laws requiring companies to notify consumers after a security breach. As a result, policymakers have begun to examine whether a national data breach law is necessary given the varying degrees of consumer notification. The FCC has indicated their support of a uniform law and has recommended that Congress include telecoms in the legislative discussion. Despite the uncertainty, one thing is sure: cybersecurity will be increasingly important to monitor during 2011. One way to stay current is to subscribe via email or RSS as we continue to look at the latest legislative or regulatory developments concerning the wireless and telecommunications industry. In the near future, we’ll be taking a look at recent data privacy recommendations by federal regulators and the privacy agenda of the new Congress. Meanwhile, if you’d like more information on Data Breach Notification or Fraud Management Compliance, your Experian representative can help. Let us know your concerns regarding cybersecurity and pending legislative issues so that we can address them in future posts.