Margin test

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.

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.

The FTC has advocated for the creation of a central website where marketing information service providers (FTC calls them “data brokers”) would be listed, with links to these companies, their privacy policies and also choice options, giving consumers the capability to review/amend the data that companies maintain. The FTC claims that such a website would bring needed transparency to the practices of companies that are not well-known to consumers. However, the proposal raises many more questions than it answers. The FTC first discussed this proposal in its 2012 report, entitled “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers,” and FTC Commissioners and staff have repeatedly cited the need for a centralized  website in testimony before Congress and speeches to stakeholder groups. The proposal was also referenced in December 2013 reports issued by the Government Accountability Office (GAO) and Senate Commerce Committee.

Every organization that touches consumer data is responsible for creating and maintaining consumer trust writes Rick Erwin, President of Targeting at Experian Marketing Services, in a recent issue of Direct Marketing News. Erwin, a direct marketing industry veteran and DMA board member, challenges the data industry at large to adopt strict guidelines and business principles that further consumer trust and effective data stewardship. Most organizations within the data industry realize the need for greater consumer education around privacy, but how do we address that need and put it into practice? At Experian Marketing Services, for example, we are guided by balance, accuracy, security, integrity and communications, the five tenets of our Global Information Values.

Most consumers (89 percent) agree that credit plays an important role when buying a home or a car but only 73 percent recognize that identity fraud could affect their ability to get loans with favorable interest rates, according to a new survey from Experian Consumer Services. In addition, more than half of big-ticket purchasers fail to check their credit at any point in the buying process, which leads to surprises when it comes time to close the deal. “Identity fraud is real and affects consumers at very important times of life,” said Ken Chaplin, senior vice president of marketing for Experian Consumer Services. “In today’s environment, it’s especially important that consumers check their credit regularly to spot signs of fraud, understand better what affects their credit and make decisions that will help them be in the best position possible when it comes time to buy their dream home or car.”