Margins and Paddings Update

For years, brands lacked the means to create highly relevant and meaningful interactions with their customers. Today, that has changed–and the demand has never been greater. According to Experian Marketing Services’ State of Cross-Channel Marketing Report, marketers from around the world are adopting more customer-centric engagement strategies. With cross-channel marketing technology and predictive analytical tools becoming smarter and more accessible to marketers, they have the ability to help brands manage data, understand the preferences of their customers and most importantly, turn that intelligence into action across every channel at scale. This evolution of technology has created a clear shift in the industry as more marketers look to technology providers like Experian to help them get and stay close to their customers. As described in the report, brands today are more customer-centric in their marketing than they were just a year ago. The report, which leverages year-over-year survey results, highlights several trends: Organizations today are more customer-centric than in 2013 Enterprise brands, like multichannel retailers, are asking their customers to set their own preferences: Brands today are 62 percent more likely to give their subscribers the ability to set their own preferences for branded communications than they were in 2013. Further, they are 89 percent more likely to allow them to select the type of messages that they receive and 48 percent more likely to give options for how often subscribers want to receive those communications. Retailers are 87 percent more likely today to ask their customers to set their own preferences on communications channels (email, mobile, direct, social, etc.) and 65 percent more likely to allow them to set their category and product preferences. Further, retailers are 131 percent more likely to acquire mobile numbers through preference centers than nonretailers. Marketers are taking action to improve their data hygiene: Marketers are 53 percent more likely to execute data hygiene techniques than they were in 2013. Retailers are 13 percent less likely to undertake some form of data-hygiene process than nonretailers. However, when they do prioritize data hygiene, retailers are 38 percent more likely to use a data-hygiene provider than nonretail brands. Brands are leveraging segmentation well beyond simple demographics: More marketers are building segmentation strategies that focus on behavior and lifetime customer value over demographics. Overall, the majority of marketers (25 percent) segment customer based on past activity or behavior. When it comes to email marketing, marketers are 6 percent more likely to execute some form of email segmentation than in 2013. The most popular forms of email segmentation are activity- and transaction-based triggers. Interestingly, the amount performing language segmentation increased the most year-over-year (+76 percent), followed by value segmentation (+40 percent). Marketers are testing their campaigns to understand what works for their customers: Ninety-two percent of marketers are testing their marketing programs to understand customer preferences and marketers are more likely to focus on testing campaign performance in email than in other channels. Testing allows marketers to identify underperforming campaigns and adjust in real-time. For example, marketers testing offers may bring to light that a target consumer responds better to a “dollars off” than a “percentage off” offer. Those results can be used to determine where similar improvements can be made to other channels. Marketers are 42 percent more likely today to view time-of-day testing as an effective test in 2014 than they did in 2013. Meanwhile, nonretailers are 64 percent more likely to claim effectiveness in creative testing than last year. Significant barriers to customer-centric marketing remain While marketers clearly are showing improvement in their customer-centric marketing strategies, only 4 percent of brands reported having an integrated customer journey across touch points. Marketers cited siloed marketing organizations (39 percent) and a product-focused structure versus a customer-focused one (28 percent) as the primary barriers. The research indicates that marketers need to improve in several key areas: Data Management and Linkage: Seventy-nine percent of companies face challenges when connecting disparate data to create a single customer view. Attribution: Marketers continue to struggle to measure results and understand how to improve. Last-touch attribution is prevalent among brand marketers, with 70 percent giving credit only to the last channel that the customer interacted with before making a purchase. A marketer’s ability to collect, integrate, analyze and optimize data intelligently to arrive at meaningful and actionable customer insights is central to cross-channel marketing success and is the key to customer-centric marketing. In today’s industry, marketers have the means to extract actionable business intelligence from their data and can now access how well they can use that intelligence to drive enhanced results for the customer. Those marketers who are struggling with customer-centricity need to prioritize attribution. If they have the ability to show how cross-channel relevance drives customer loyalty and ultimately benefits their business’s bottom line, this gives the marketing organization a clear business case to make the customer, rather than a channel, a top priority across the organization. To learn more about customer-centricity and the state of cross channel marketing, download the report, here.      

Eighty-eight per cent of Australians say day-to-day expenses, rent or mortgage repayments, groceries and bills, are the most common roadblocks to paying down debt, according to new research by Experian, the global information services company. Experian research also showed 65 per cent of Australians incorrectly believe contributing to superannuation or saving money can have a positive impact on your credit score. Andy Sheehan, Managing Director of Credit Services at Experian said the figures not only highlight a knowledge gap when it comes to understanding credit worthiness but also the difficulty Australians face in paying down debt as the cost of living continues to rise1. “Australians are more reliant on credit now than ever before. The Australian Securities and investment Commission noted recently that the average Australian credit card debt in 2014 was more than 30 per cent higher than the year before,” he said. “We know that the most effective way to manage credit card debt is to pay it off in full each month however, we also know that many of us are aren’t able to manage our debt in this way2. Our research suggests that about 19 per cent of Australians pay only the minimum repayment on their credit card and five per cent of those people prefer to put extra cash in savings instead of paying down their debt. “How we manage debt has a major impact on our life. While saving is important, it’s also important to make paying down debt one of your priorities,” said Sheehan. Unsurprisingly, one in three Australians who participated in the survey (33 per cent) said they were nervous about their ability to access and manage credit and according to the research, their concerns are justified. Sheehan explained there is a significant lack of consumer understanding about the behaviours that impact creditworthiness, particularly when it comes to savings and superannuation. “Australians are too busy ‘getting by’ to worry about their creditworthiness. Our research shows that Australians are alarmingly misinformed when it comes to credit reports. In overseas markets, consumers are more empowered to take charge of their credit profile, actively manage their credit reputation and use it to get a better deal. In order for this to become the norm here, Australians need to be better informed and more proactive with their credit reputation,” said Sheehan. The new figures show we still have a long way to go. The research shows that only 23 per cent of Australians actually understand what a credit score is and how it is used by lenders to grant credit. Sheehan said comprehensive credit reporting was a step in the right direction as it will encourage people to become more aware of their positioning in the credit landscape. “Comprehensive credit reporting is good news for consumers. The negative credit reporting system doesn’t take good credit behaviour into account. Australians deserve to be recognised for good financial behaviour and this should be reflected in our credit report to enable better deals,” explained Sheehan. Additional findings from the research show: A further 19 per cent of Australians incorrectly believe that having multiple lines of credit open can positively impact their creditworthiness 40 per cent of Australians have up to three lines of credit available to them that they use infrequently 60 per cent of people said their bank is meeting or exceeding their expectations on providing information about their credit profile, compared to just 45 per cent in February 2014 People should also be aware that they can access their credit reports from Experian for free at any time. It is a good idea for them to do this to help prevent identity theft and confirm the accuracy of their credit history. Consumers looking to receive a copy of their free credit report and score can do so by visiting the Experian Credit Services website or for general service enquiries consumers may call Experian Credit Services on 1300 783 684.

Experian’s 34th annual Vision Conference is quickly approaching. This year’s theme of “Think Big: Data, Analytics, Insights, Growth” will be explored through more than 80 breakout sessions with thought-provoking perspectives, best practices and solutions for addressing emerging business issues for clients. Each year, Vision combines in-depth research, cutting-edge technology and expertise from industry leaders to help Experian’s clients strengthen their balance sheets and plan for sustained growth. To help you discover more about Vision 2015, here are a few previews of sessions at this year’s event: FCRA 623 reporting requirements—Are you meeting your obligations as a data furnisher? Learn how to test and sample your data to comply with the Fair Credit Reporting Act (FCRA). Understand the customer impacts of reporting and what it means to report accurate and complete consumer credit data. See a demonstration of Experian’s peer benchmarking tools and hear best practices. Insight into a rapidly evolving regulatory landscape for Commercial Lenders As the U.S. economy continues to strengthen, an increased regulatory burden is being placed upon small business lenders. Experian's Government Affairs team will discuss current regulatory trends taking shape in Washington, D.C., and throughout the United States. We will discuss the potential effect it may have on small-business lending, near term. Will EMV Save The World? We will discuss the anticipated rollout of EMV cards in the United States with an eye toward a shift in fraud loss rates and attacks. There will be a review of post-rollout dynamics in regions such as the United Kingdom to provide a bellwether for the United States. Vision 2015 will be held May 3—6 at the Gaylord National Resort in the Washington D.C. area. To register and learn more about Experian’s Vision 2015 Conference click here and follow us on Twitter at @ExperianVision and our LinkedIn Community.