Margins and Paddings Update

Data is one of the most valuable assets in our society and drives many decisions. For businesses, data can reveal insights about customers and prospects, product trends, areas for investment and efficiency improvements. For consumers, data provides more personalized interactions with brands, including targeted deals or coupons, and geo-location services. Because of these benefits, business leaders are increasingly reliant on first and third party information when it comes to decision making and operational execution. According to a recent Experian Data Quality study, 95 percent of global companies feel the drive to turn data into insight. The four main reasons behind this include the desire to: understand customer needs, find new customers, increase the value of each customer, and secure future budgets. However, many businesses are falling short. They aren’t able to get the insight needed from data assets. While there are many challenges around data, like rapidly-changing technology, skills shortages in data management and shifting regulations, business leaders can control data quality strategy. Many are not able to gain insight because the quality of their data is not up to par. Ninety-two percent of organizations suspect their customer and prospect data might be inaccurate in some way and on average, businesses believe 26 percent of their data is inaccurate. That figure has risen significantly over the past several years. While there are many possible reasons for this increase, one major contributing factor is that data management strategies have not kept pace with the changing needs of business intelligence and analytics. Many organizations still manage data using legacy technology and processes. This creates reactive strategies that stop data issues from being discovered before they cause harm and prevent a single customer view. To move into a modernized and proactive strategy, businesses need to adjust their data management strategy from a departmentalized approach to a central data owner. We see many companies finding success by doing so. In fact, more companies who have enjoyed significant profits in the last 12 months manage their data quality strategy centrally, with ownership resting with a single director. We also see companies who have more sophisticated data management approaches dealing with less inaccurate data and fewer negative consequences. Most commonly, that director tends to be the CDO or CIO. There is certainly a case for adding a CDO to the organization, especially considering the value of data and the benefit of having someone to take responsibility for the quality, standards, meaning, security, metrics, integration or coordination of data among the various divisions. The rise of the CDO is something we are watching very closely at Experian and we expect this role to grow rapidly in prominence over the next few years. Building a foundation in data quality by centralizing data management people, technology and processes under one group is a key step in creating actionable insight from the valuable asset of data. To stay competitive, businesses have to operate in intelligent ways by developing strong consumer understanding. That starts with quality data. We at Experian enable business users to obtain quality, actionable data when it is required. This doesn’t mean implementing massive technology solutions that take months or years to see benefit from. We focus on solving specific problems with targeted technology solutions, helping you focus on counting the data that really matters to your business. To become data-driven, start by thinking about where you’re currently getting your data insights. Do you trust your information? Does it produce reliable information and insight? By starting with a strong data management strategy, organizations can build trust in their data and see the true benefit of data having a positive influence on their business. Subscribe to this blog by email to learn more about our data and analytics.

For more than 40 years, Orange County has been the home of Experian’s North American headquarters. We have strong roots here. And as part of that, Experian and our employees work and volunteer with organizations around the community to help make the OC a better place to live. As a long-time Experian employee and Orange County resident, I am proud to represent a critically important organization to our community: the Orange County Business Council (OCBC). And as 2015 Chair of OCBC, I thought it was a good time to discuss not only the mission of OCBC, but more importantly, how it relates to what we do at Experian. OCBC’s mission is to advance business and enhance the quality of life for all Orange County residents. As an organization, Experian is committed to assisting businesses around the world understand and harness the power of data and insights to positively move the economy forward. ­ In short, helping businesses grow. One of the goals of Experian’s Business Information Services unit, for which I lead marketing, is to provide information that help business owners manage their credit, enabling them to take action and obtain funding that will increase cash flow and uncover growth opportunities. The business unit works with organizations such as the Small Business Administration (SBA) and the National Federation of Independent Businesses (NFIB) to reach entrepreneurs and sole proprietorships to deliver tools and educational resources that help them better understand the credit landscape and position their business for future success. This is yet a small example of what Experian does and how it correlates to OCBC, and my mission in chairing this important organization. Ultimately, businesses, both large and small, are what drive our economy forward, and we believe the work OCBC does to help businesses is of the utmost importance. Whether in Orange County or around the world, advancing business and enhancing the quality of life for consumers are goals we can all get behind. As Walt Disney would say, “it is a small world after all.”

Just as looking in the rear view mirror can help you navigate your next move, looking into recent trends can serve as a guide to where the industry should head in the future. With that in mind, let’s take a step back and look at some of the trends in the automotive industry that finished off 2014. After all, it’s the insights from these trends that enable dealers, manufacturers, aftermarket retailers and lenders to take the right action to uncover growth opportunities and improve profitability. As we look at Experian Automotive’s 2014 Market Share and Registration Trends analysis, we see that the volume of new and used vehicle sales continued to increase year-over-year to reach 16.3 million and 39.3 million, respectively. However, despite the volume increases, the growth rate for both types of sales has slowed considerably. The growth rate of new vehicle sales slowed to 6.6 percent, while the growth rate for used vehicle sales actually decreased to 1.8 percent from 1.9 percent a year ago. Findings from the analysis also showed that entry-level cross-over utility vehicles and full-sized pickup trucks remained the top two new registered vehicle segments, while alternative-powered vehicles fell out of the top ten. Among new entrants into the top ten was the upscale-near luxury vehicle segment, which includes such cars as the BMW 3-Series, Mercedes-Benz C Class and the Lexus ES350 Other findings from the analysis include: The total number of vehicles on the road increased by 5 million from a year ago to reach 251.1 million More than 92 million vehicles on the road fell within the aftermarket “sweet spot,” model years 2003-2009. Analysis also shows the sweet spot shifting toward a higher share of import vehicles. Ford F150, Chevrolet Silverado/1500 and Honda Accord were the top three vehicle models of all vehicles on the road at the end of 2014 Ford (20.6 percent), International (16.9 percent) and Freightliner (15.8 percent) were top three manufacturers of medium- and heavy-duty vehicles in terms market share of all vehicles on the road General Motors had the highest market share of new vehicle sales in the South and Midwest, while Toyota led the way in the Northeast and West Fast forward three months into 2015, the automotive industry seems to be picking up right where it left off last year – clicking on all cylinders. It will be important to keep an eye on how these trends fluctuate through the rest of the year, as those insights can help the industry navigate and adapt to situations that may arise. Subscribe to this blog by email to learn more about our data and analytics.