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Experian Marketing Services, a global provider of integrated consumer insight and targeting, data quality and cross-channel marketing, today announced the release of The 2014 Digital Marketer: Benchmark and Trend Report, the marketing industry’s go-to resource, now in its sixth year, for key industry benchmarks, consumer insights and data. In addition to benchmark and trend data, the 2014 edition features the results of a new cross-channel marketing survey conducted by Experian Marketing Services in more than 20 countries throughout Europe, North America and Asia. According to its results, the survey shows that 80 percent of marketers plan to run cross-channel marketing campaigns in 2014 and more than half of marketers plan to integrate their marketing campaigns across four or more different channels. “This is the year in which marketers move beyond being creative brand managers and invest in the technologies, the tools and the people necessary to make real, cross-channel interactions happen,” said Ashley Johnston, senior vice president, global marketing, Experian Marketing Services. “In today’s world, consumers are seamlessly transitioning between various devices and channels. Marketers need to understand how best to communicate with their customers through these channels to provide a relevant and personal experience for those customers. The 2014 Digital Marketer provides recent, actionable data to help marketers better formulate those seamless interactions and evolve their campaign strategies to connect with their customers.” Survey results from throughout the 2014 Digital Marketer featured key findings, including: • Only 28 percent of marketers work on teams that are integrated fully. The majority of marketers work on teams that are organized by marketing channel or somewhat integrated. • Marketers with fully integrated teams cite budget and understanding customer behavior as their primary barriers to cross-channel marketing. However, one in five marketers from integrated teams still cite organizational structural as a top barrier. • Sixty-one percent of marketing leaders cite collecting and managing data as a top business challenge. • Thirty-three percent of marketers cite linkage, or no single customer view, as a leading barrier to cross-channel marketing. The 2014 Digital Marketer: Benchmark and Trend Report addresses key consumer trends and digital marketing tactics, providing suggestions for ways brands should best employ technology, data and insights to engage consumers and meet their financial goals. The 2014 Digital Marketer: Benchmark and Trend Report is available via a free download at http://ex.pn/PpijOx.
As a child, one of the things we all learn is cause and effect. If someone is hungry, then they eat food. If someone is tired, then they take a nap. So logically, one can infer that since we are seeing a recovering housing market, more people will want to buy houses, thus creating a need for more homes to be built. But that’s what makes the findings from Experian’s Q4 Metro Business Pulse analysis all the more intriguing. Although the housing market is showing signs of improvement, the construction industry continues to struggle with below-average business credit health, including a lower-than-average risk score, paying their bills more days beyond contracted terms, had higher bankruptcy rates and had a greater percentage of delinquent debt than other industries. However, despite the direction of the industry as a whole, there were pockets of progress, especially in areas hit hardest by the housing collapse. For instance, construction businesses in Phoenix, Ariz. had among the lowest delinquency rates across the industry (lower than approximately two-thirds of the industry). Not so surprisingly though, other areas hit hardest by the housing bust were not as successful. Areas such as, Las Vegas, Nev., Miami, Fla., Fort Myers, Fla., and Orlando, Fla., all continued to struggle across most business credit health categories. In addition to having lower-than-average risk scores and high delinquency rates, the collective grouping paid their bills the most days past due, totaling roughly 92 days beyond contracted terms. To see detailed findings from the report, as well as other business credit trends seen throughout the quarter, register for Experian’s Quarterly Business Credit Review Webinar on March 18, 2014, at 1 p.m. Eastern time.
In a world where customized advertising is delivered directly to the right group of people in the most targeted ways, it’s hard to remember that life wasn’t always this convenient. Because marketing information service providers (aka: “data brokers”) play such an important role in our lives and our economy, I thought I’d share five little-known facts about the marketing data industry. 1. Marketing information service providers don’t operate in secret – they’re fully transparent and act with consumers’ permission. Data-driven marketers are far from the “shadow industry” some envision. This industry represents a significant portion of America’s economy, employing about 675,000 people and contributing $156 billion in revenues annually. That’s not the profile of an industry in hiding. What’s more, the marketing data industry generally collects consumer information with the permission of the consumer, following the Direct Marketing Association’s ethical guidelines. They’re required to provide notice to consumers and honor a person’s choice to opt out, and they limit the use of the consumer information they collect to marketing purposes only. 2. The industry provides valuable benefits to society. Responsible information sharing enhances economic productivity and protects against fraud and identity theft. It also facilitates access to fair and affordable credit and ensures that companies can effectively reach consumers with relevant products and services. Most consumers in a recent Experian survey weren’t concerned about the use of their data, and in fact recognized certain benefits, such as coupons, lower prices and retail discounts. Also consider: consumers’ ability to search the Internet or check the weather report for free is driven in large part by the profits available through targeted online advertising. At Experian, much of our marketing data is derived and based upon the extremely intelligent and talented work of data scientists, and the responsible usage of this data is a key ingredient to our nation’s productivity, innovation and ability to compete in the global marketplace. 3. The majority of companies use consumer data responsibly – and for the few who don’t, the problem isn’t the data, but instead a rogue entity violating the law. In any industry, a few bad apples can leave their mark, but the good news is that those who use data inappropriately are few and far between. Laws governing unfairness and deception can be used to stop the bad schemes of predatory lenders and fraudulent marketers. In fact, we feel strongly that regulatory agencies should enforce existing laws against companies engaged in unfair or deceptive marketing and lending practices. 4. Marketing information service providers are bound by a comprehensive set of legal and self-imposed regulations that protect consumers. A number of laws provide comprehensive protection for consumers, such as the Federal Trade Commission Act, the National Do Not Call Registry, the Controlling the Assault of Non-Solicited Pornography and Advertising (CAN-SPAM) Act, the Children’s Online Privacy Protection Act (COPPA), the Gramm-Leach-Bliley Act, fair lending laws, and state laws and regulations. But beyond these requirements, the industry’s robust self-regulation standards, including those from the Digital Advertising Alliance, are highly effective and provide meaningful choices to consumers. Additionally, strict adherence to the Direct Marketing Association’s long-standing guidelines for ethical business practice assures marketers maintain consumer relationships that are based on fair and ethical principles. At Experian we also have adopted an internal "Privacy by Design" process. This brings together representatives from across the company; all working together to ensure that every new product innovation is designed with the consumer's best interest in mind. 5. Data-driven marketers aren’t the only entities that analyze data and create segment markets. Whether its hotel chains offering discounts to loyalty program members or airlines offering variable pricing, dynamic marketing has been a staple within our economy for decades. The vast majority of data analysis and market segmentation is conducted by companies analyzing their own customer data – so market segmentation is not only the province of third-party data providers. The bottom line: marketing information service providers are crucial to how we do business in the U.S., and are part of what fuels the American economy. In addition to promoting economic growth, responsible data usage ensures companies can effectively reach consumers with products and services that are most relevant to them.
Today, we stand at the forefront of a digital revolution that is reshaping the financial services industry. And, against this backdrop, financial institutions are at vastly different levels of maturity; the world’s biggest banks are managing large-scale infrastructure migrations and making significant investments in AI while regional banks and credit unions are putting plans in place for modernization strategies, and fintechs are purpose-built and cloud native. To explore this more, I recently had the privilege of attending the annual Reuters NEXT live event in New York City. The event gathers globally recognized leaders across business, finance, technology, and government to tackle some of today’s most pressing issues. On the World Stage, I joined Del Irani, a talented anchor and broadcast journalist, to discuss the future of lending and the pivotal role of data and AI in building a more inclusive financial system. Improving financial access Our discussion highlighted the lack of access to traditional financial systems, and the impact it has on nearly 100 million people in North America alone. Globally, the problem affects over one billion people. These people, who are credit invisible, unscoreable, or have subprime credit scores, are unable to secure everyday financial products that many of us take for granted. What many don’t realize is, this is not a fringe subset of the population. Most of us, myself included, know someone who has faced the challenges of financial exclusion. Everyday Americans, including young people who are just starting out, new immigrants and people from diverse communities, often lack access to mainstream financial products. We discussed how traditional lending has a limited view of a consumer. Like looking through a keyhole, the lender’s understanding of the person in view is often incomplete and obstructed. However, with expanded data, technology, and advanced analytics, there is an opportunity to better understand the whole person, and as a result have a more inclusive financial system. At Experian, we have a unique ability to connect the power of traditional credit with alternative data, bringing a more holistic understanding of consumers and their behaviors. We are dedicated to leveraging our rich history in data and our expertise in technology to create the future of credit and ultimately bring financial power to everyone. The future of lending After spending two days with over 700 industry leaders from around the world, one thing is abundantly clear: much like the early days of the internet, today, we are at the cutting-edge of a technical revolution. Reflecting on my time at Reuters NEXT, I am particularly excited by the collective commitment to drive innovative, and smarter ways of working. We are only beginning to scratch the surface of how data and technology can transform financial services, and Experian is positioned to play a significant role. As we look to the future, I am excited about the ways we will create new opportunities for businesses and consumers alike.
We believe that financial literacy leads to empowerment. That is why Experian supports initiatives and partners with community organizations to deliver financial education. We also develop products and services that give more control to consumers over their credit profile and financial health. As part of advancing our mission of Financial Power to All®, we are proud to announce we are helping more than 5,000 Hispanic individuals nationwide by relieving $10 million dollars of consumer debt. To provide families with this boost, we joined forces with ForgiveCo, a Public Benefit Corporation (PBC), to administer the acquisition and cancellation of qualifying consumer debt for the selected recipients. Beneficiaries will also receive a one-year premium Experian membership for free that offers access to their Experian credit report in English and Spanish[i], FICO® Score[ii], bilingual educational content, and other financial resources. We hope this effort helps raise awareness of the importance of financial literacy for everyone, and that Experian has resources to help individuals reach their financial dreams. To amplify the message, we collaborated with multi-platinum, award-winning singer and songwriter Prince Royce and you can see his video here. In fact, we have been making a concerted effort the last several years to evolve our educational resources and products to better support all underserved communities. Some of our other activities include the creation of the B.A.L.L. for Life initiative that connects African American and Hispanic youth with financial education, supporting scholarships for Asian Americans through the Ascend organization, providing custom resources for Out & Equal and Born This Way Foundation for the LGBTQ+ community, supporting the NextGen Innovation Lab for Disability:IN, and sponsoring credit counseling for the military community with Operation HOPE. For resources in Spanish, Experian offers a credit e-book and consumers can access a full suite of articles at the Ask Experian blog here. [i] Only Experian credit reports are available in Spanish. All other services associated with an Experian membership are available in English only. English fluency is required for full access to Experian’s products. [ii] Credit score calculated based on FICO® Score 8 model. Your lender or insurer may use a different FICO® Score than FICO® Score 8, or another type of credit score altogether. Learn more.
Amid some of the financial challenges that underserved communities experience, members across the financial services community remain committed to championing initiatives and programs that drive greater financial inclusion. In fact, collaboration has led to the inclusion of non-debt related payment information on consumers’ credit profiles, as well as digital services that make it easier to manage money. These efforts have helped to broaden access to fair and affordable financial resources for more individuals. While significant progress has been made, there is still more work to do. However, some of the misconceptions and myths about the financial services community are hindering further advancement. Debunking these myths will accelerate progress by building trust between the financial services community and consumers. Person withdrawing money from ATM contactless Myth #1: “Financial institutions have no interest in underserved consumers or credit invisibles.” The truth is, banks and credit unions want to say “yes” to more prospective borrowers, including individuals and families from underserved communities. Beyond being the right thing to do, it’s an opportunity to potentially build lifelong relationships with a relatively untapped market. A show of good faith to communities who have largely been ignored by the financial system could lead to customer loyalty that may extend to their family and friends. That’s why participants across the financial ecosystem have been proponents of including expanded data sources—such as on-time telecom, utility and video streaming service payments—on to consumer credit reports, as well as exploring other Fair Credit Reporting Act (FCRA)-regulated data sources, including payment data on short-term small dollar loans and expanded public records data. Making this data more accessible to lenders provides a more comprehensive view of a consumer’s ability and willingness to repay outstanding debt—an actionable solution to extending credit to consumers without lenders taking on additional risk. Myth #2: “There is a lack of trustworthy financial education resources.” The financial services community and affiliated organizations recognize that empowering people with financial knowledge and skillset are critical to consumers’ financial success. In fact, banks and credit unions are partnering with nonprofits and non-governmental organizations to better understand the unique challenges and opportunities within specific communities and provide relevant tools and resources. For example, Experian’s B.A.L.L. for Life (Be A Legacy Leader) program, launched in partnership with the National Urban League, serves as a catalyst for engaging with Black communities and low-income youth through live events and digital financial education. Subject matter experts, professional athletes, celebrities, and other influencers share their experiences and expertise, covering topics such as banking, credit, financial management and investing. In addition, to help people improve their financial management, Experian partners with the National Foundation for Credit Counseling (NFCC). The NFCC connects consumers with certified financial counselors to help them address various pain points, including debt management, homeownership, student loans or small business cash flow issues. Myth #3: “Underserved communities have few opportunities to build credit and enter the mainstream financial system.” People from underserved communities, as well as younger consumers and recent immigrants are often excluded from the mainstream financial system because they lack an extensive credit history. Historically, it’s created a vicious cycle; in order to get credit, you have to have credit. Fortunately, there has been a sea change in innovative solutions to address the specific needs of these populations. These include new credit scoring models and microfinancing which provide financial services to individuals who may have been excluded from traditional banking systems. In addition, by incorporating expanded data sources, such as telecom, utility and residential rental payments onto credit reports, lenders have more visibility into consumers who may have been excluded by traditional credit scoring methods.These programs help individuals and families from underserved communities establish and build a credit history that could enable loans, or the ability to rent an apartment or open their dream business. An example is Experian Boost®, a free feature that allows Experian members to contribute their history of making utility, cellphone, insurance, residential rent and video streaming service payments directly into their Experian credit profile. By incorporating nontraditional credit data like paying utility bills on time, online banking transactions, rental payments and verified income data, more people can establish a credit profile that can potentially qualify them for a loan. More Inclusion, Fewer Myths It’s encouraging that community organizations and banks are beginning to see the economic and social benefits of aligning on financial literacy and inclusion. As more initiatives come online, underserved populations will be able to establish a better financial foundation. Then, we can declare the myths to be history.