JR TOC Review

The term big data tends to be overused in business today. While some refer to it as a technology and others a level of insight, it has come to embody many different data actions, from business intelligence, to analytics and data modelling. We have become so obsessed with big data that we think we have to have this level of insight as a requirement to running a successful business. And for the most part, that statement is true. Data has proliferated our society to the point that every decision is made with some influence of data. Certainly experience, gut instinct and advice play a critical role, but data has become one of our most constant advisors. We rely on information at a business level for location expansion, product fulfilment, customer loyalty and marketing. But, that same feeling also translates over to our habits as consumers when we rely on data to help make decisions on where to eat dinner, where to buy a home, what businesses to shop with, etc. Data has really changed the way we operate as a society. But as all of us jump onto this big data bandwagon, it is important to remember that big data is not always insightful. The speed at which information is gathered and the volumes we are dealing with today can make information more relevant, but it can also be riddled with errors. Big data has become too big for us to manage. There is a high degree of inaccurate information in businesses today. Recent Experian Data Quality research reveals that almost all businesses have a problem with their data and on average, U.S. businesses believe about 30 percent of their data is inaccurate. That is a shocking figure and shows the degree to which businesses trust their information. Without trust, business stakeholders certainly can’t perform big data analytical exercises and use them to make intelligent decisions about their business. But why is that trust lacking? We frequently see that data can be inaccurate, incomplete or just unconsolidated for a full understanding of the customer. It also can go against the conventional gut wisdom, leaving some executives to disregard it entirely. We tend to like data when it agrees with what we are already thinking. To develop trust around data, we need to realign our expectations. While a third of information may be inaccurate, what does that mean? Is the information you are actually trying to analyze inaccurate? Most of us do not touch the majority of our information assets for insight. So what does it matter if the information we are not accessing is accurate? We need to understand the true need for data in our business. We need to consider how to use data as a force for good. What it really boils down to is being able to access, use and trust data. Information does not have to be perfect for us to achieve that and we don’t have to be able to utilize every data set within our system. To make big data work, businesses need to look at their own needs and decide what is good enough for them. What are the benchmarks within their business that they need to meet to trust and access information for analysis? That means that organizations need to link data across channels and databases, put data governance practices in place and move quickly to ensure information can be used across not just IT, but also across various business stakeholders. In a world dominated by data and technology, we are being forced to adapt. We need to make decisions based on new information rather than purely gut instinct, but we have to make sure the information we are reviewing provides the right insight. Too much data can be problematic. We can get bogged down in it and become unable to make decisions. We have to sift out what actually makes sense to review and what we should discard. Big data doesn’t always have to be this massive effort. It needs to be small and manageable, fit for your business. No two big data efforts are the same. Be sure that as you consider big data within your organization, you are ensuring the accuracy of information and that the data makes sense for each particular project.

Confronted with a vast amount of incoming data, today’s digital marketers are facing an on-going battle to keep up. According to Experian Marketing Services’ 2015 Digital Marketer Report, the biggest hurdles and key priorities for marketers this year are dependent on having accurate, enriched data that can be linked together in a central location for a complete customer view. Moving from fourth place in 2014 to first place in 2015, linkage has quickly moved up the ranks as one of the top the leading barriers to cross-channel success. According to the report, eighty-nine percent of marketers say that they have trouble achieving a single customer view, and a third of those questioned see effective linkage as the main barrier (32 percent) to creating a truly cross-channel marketing strategy. The full 2015 Digital Marketer Report can be downloaded from the Experian Marketing Services’ Website here: http://bit.ly/1AJDYah The biggest challenge identified by marketers for achieving a single customer view is poor data quality (cited by 43 percent of marketers), followed by siloed departments (39 percent) and the inability to link different technologies (37 percent). Experian Marketing Services surveyed more than 1,000 marketers worldwide to identify the biggest opportunities and challenges for marketers from around the world. The annual report benchmarks some of the key issues that brands face trying to engage audiences with relevant messages, in an often complex digital environment. Separate research conducted by Experian Data Quality earlier this year found that 91 percent of companies are leveraging data and data quality in an attempt to optimize their customer experience. However, only 28 percent of companies are creating real-time triggered messaging across multiple channels with their data. To deal with this issue, Experian Marketing Services helps organizations link data sets together to find unique consumer insights, significantly improving the way organizations meaningfully connect with their audiences. “Consumers demand exceptional brand experiences, but without the right strategy and technology for collecting, authenticating, linking and managing all the data coming into an organization today, brands are unable to meet that demand,” said Ashley Johnston, senior vice president, Global Marketing, Experian Marketing Services. “Accurate, enriched data allows brands to stand out from competitors, create relevant interactions based on the deepest understanding of their customers and build successful customer-acquisition strategies as their priorities suggest.” “Achieving single customer view is a key step in the right direction, but fully optimized cross-channel marketing is still the Holy Grail for marketers around the globe. The in-depth process required in setting up a strategy presents a range of hurdles, and there are other important issues to overcome in the process,” said Simon Martin, Experian Marketing Services, UK. “It takes entire companies working together to get a better understanding of their customers and to plan an engagement strategy that will resonate uniquely with each customer at every point of interaction.” A question of linkage The 2015 Digital Marketer Report identified several top barriers to achieving a fully integrated cross-channel marketing approach: no single customer view (32 percent), companies’ current technology (31 percent) and organizational structure of the business (31 percent) came out on top. Around the world The top challenges for marketers from around the world share many similarities, but priorities and barriers differ slightly by region. UK: Single customer view (SCV) and data linkage is seen as more of a challenge than any other, with nearly two-fifths (37 percent) of U.K. respondents saying this was their top challenge, beating organizational structure (33 percent) and the company’s current technology (32 percent). United Kingdom marketers are more likely to believe they understand customer behavior and have a clear roadmap toward cross-channel success (with only 21 percent and 20 percent, respectively, identifying these as challenges) compared to the global average of 25 percent apiece. Europe: The picture in Europe is very different than the United Kingdom. In Spain, only 17 percent of respondents reported the same issue with linkage; instead, the major problem was identified as the company’s current technology (42 percent) as holding them back. French marketers follow a similar pattern and are also more confident with their grasp of linkage, with 24 percent flagging it as an issue. Again, technology (38 percent) is the most pressing concern for French respondents. North America: Organizational structure was identified as the most important issue in North America, with 38 percent of respondents rating this as their highest priority. Respondents also are more likely to say they don’t have a clear roadmap to success (26 percent) than the global average. Asia: In Japan, marketers are confident in their technology, with only 9 percent seeing this as an issue. Instead, 44 percent struggle to link data to create a single customer view. Meanwhile, respondents from Australia and New Zealand identify technology as the largest single challenge to their cross-channel strategy (35 percent). Be sure to check out our 2015 Digital Marketer infographic that highlights key findings from the research.  

The last decade was a tumultuous financial period for Americans. In the mid-to-late 2000s, economic activity declined rapidly and marked the largest downturn since the Great Depression. It is estimated that Americans lost nearly $16 trillion of net worth during this time. To make matters worse, unemployment rates doubled.  The booming U.S. housing market plummeted along with the stock market which caused a chain reaction in exposing significant flaws within the financial ecosystem. America’s credit crisis was in full-effect; the lending market slowed significantly with stricter credit standards with consumer confidence spiraling quickly downhill. Based on a recent Experian analysis of U.S. lending trends related specifically to HELOCs, the shift in market conditions from 2005 to 2014 is evident. I sat down with Experian’s director of Public Education to find out what this all means for consumers and lenders. What exactly is a HELOC?  H-E-L-O-C stands for Home Equity Line of Credit. That means you are using your house as collateral for a line of credit. You can use that line of credit to make purchases up to the HELOC limit. It is similar to a credit card account with one very important difference. Unlike credit credit cards that are unsecured debt, your house serves as security for a HELOC. That means that if you don’t repay the debt, the lender might be able to claim your house as payment. What does end of draw mean? The study revealed that a large portion of HELOC loans were originated between 2005 and 2008. These loans represent $292 billion outstanding, which is significant as this group of loans nears the repayment phase, which is referred to as “end of draw.” At the end of the HELOC terms, the loan terms direct consumers to either enter into a repayment program, which can be structured over time, or to pay the loan off in one lump sum or balloon payment. Should we be concerned that the outstanding HELOC debt could have a negative impact on the economy? The aftermath of the great recession is still rippling through the marketplace, so there are concerns about the pre-recession (2005-2008) HELOCs that are now in repayment and how they could negatively impact consumers and the economy as a whole. The study further evaluated what could happen to these loans as well as other loan products and found that consumers coming to the end of draw on their HELOC are more likely to go delinquent, not just on the HELOC loan, but also on other types of debt as the increase in repayment burden is absorbed by the consumer. However, financial institutions have reached out to their customers to make sure they understand and are prepared for this change in their payment structure. You should work directly with your lender to develop a plan that will help you manage your financial obligations. What should consumers in this situation do? To help borrowers avoid crippling their credit histories, here are five strategies to implement if you are nearing the end of draw period. Know your loan terms— It’s been awhile since you’ve reviewed that loan document so it is a good idea to refresh your memory on what you can expect during this repayment period. Understanding the repayment requirements in your contract with the lender is the foundation for your strategy to navigating any payment increase. Talk with your lender—Banks want borrowers to remain in good financial standing and will work with you during this repayment period. If you anticipate any difficulty making payments, communicate that with your lender so they can help guide you to resources and information.  Evaluate and adjust your budget—Developing a budget to manage payments and other financial commitments is crucial to navigating the payment increase. Are there areas in which you can decrease spending? You can easily trim a few dollars each week by packing your own lunch and getting your ‘cup of joe’ fix by making coffee at home in the morning. Give your cash flow a boost—Can you generate some extra income from your passion or hobby? Sell your crafts on Etsy or your vintage finds on Ebay? Become an Uber driver or freelancer photographer? Creativity can pay off. Don’t be late—I can’t say it enough. Pay all your bills on time. Delinquent payments and collections can have a major negative impact on credit scores. Create calendar alerts or set up automatic payments to avoid this serious credit ding.  To learn more about the analysis, please click here.

Buying a home is one of the best times to know about your credit. According to a recent survey by Experian, many of those in the market for a home already know the wisdom of credit score insight. However, only half of recent buyers said they checked their credit when they first considered purchasing a home. The good news? 95 percent of both recent and future buyers understand the power that credit scores have in making a home purchase. Of those sampled, more than half (55 percent) are currently working to improve their credit overall to qualify for better home loan rates in the near future. Early credit knowledge offers prospective home buyers their best chance to make course corrections or improvements to their credit behaviors – something 31 percent of recent buyers needed to do after discovering a negative surprise on their credit report. Recent buyers are savvy to the impact that poor credit can have, but far fewer understand identity theft can deliver similar blows to securing a good interest rate (74 percent versus 61 percent), getting a large enough loan (66 percent versus 54 percent), or might require you to have a cosigner (58 percent versus 47 percent). Similarly, recent homebuyers understood less about the importance of checking in with your credit when preparing to refinance. Lesson learned? Pay attention to your credit year-round, and understand that what you do today impacts how your credit works for you in critical purchase moments like home buying. View the complete survey findings and methodology here: Experian Home Buying and Credit: Survey Report, 2015 

Every time I turn on my television, look out my window or drive into the office, I always see hybrid or electric vehicles on the road. These days it seems like almost everyone is going green. With all the alternative-powered vehicles out there, you’d think that the market is simply booming, right? Would you believe me if I told you that the percentage of newly registered alternative-powered vehicles in 2014 actually declined from the previous year? It’s true. With this revelation, we actually took a deeper look into the alternative-powered vehicle market to see what else we can discover. Here’s what we found: Did you know that consumers who buy “Green” vehicles, purchase them in cash at a higher rate than those that buy more traditional models? Again, it’s a fact. The point is, there are many stereotypes and misnomers about alternative-powered vehicles, as well as the consumers who purchase them. But, just as there are hundreds of stereotypes, there also is an abundance of data to help confirm or reject them. At Experian, we’re committed to using our data for good by providing information into the market to help dealers, manufacturers and consumers better understand the environment we live in – whether we are talking broadly about what metal is moving or more specifically providing actionable insights into who is “going green”. For instance, consumers purchasing an alternative-powered vehicle tend to be a lower credit risk than those purchasing a traditional model. Nearly 83 percent of consumers who purchased a “Green” vehicle fell within the prime credit category, while the same could only be said for 71.5 percent of consumers who purchased gas-powered models. Additionally, of the top five alternative-powered vehicle models in 2014, three of them came from the Toyota family. The Toyota Prius and Prius C were in the top two, while the Camry was in the number four position. The Ford Fusion and Nissan Leaf made up the third and fifth spots, respectively. It’s these insights that enable the automotive industry and its consumers to take the appropriate action and make the best decisions for them. For consumers, gaining insight into the market allows them to paint a clearer picture of what options are most popular and available. For dealers and manufacturers, they are able to gain a better understanding of consumer demand and provide inventory that meets the needs of the market. The fact of the matter is, opportunity exists everywhere you look, you just have to know what you’re looking for. You can’t let preconceived notions or ideas dictate future decisions. By leveraging data and insight, the automotive industry is able uncover the unknowns and put itself in a good position to succeed, while helping consumers purchase vehicles that meet their specific lifestyle.    

Today, Experian and the nationwide credit reporting agencies announced another important step in our work to improve the credit lives of consumers and create a healthier financial ecosystem. The settlement between 31 state attorneys general and Experian, Equifax and TransUnion concludes months of productive discussions and our industry is proud of the results. I want to share with you what the industry announced today: Stuart Pratt, President and CEO of the Consumer Data Industry Association, said, “In March, the three nationwide credit reporting agencies announced an unprecedented National Consumer Assistance Plan to enhance their ability to collect accurate consumer information and to provide consumers with a better experience in interacting with the national credit reporting agencies about their credit reports. That plan, which arose out of collaborative discussions between the three agencies and a group of state attorneys general and the attorney general of New York, will enhance credit report accuracy, increase transparency, and provide meaningful benefits to consumers. Those benefits, which will be rolled out nationwide, stand as an example of what can be achieved when private industry and government officials work together. “In the interest of concluding the dialogue with the group of state attorneys general and with the goal of moving forward with the National Consumer Assistance Plan, we have agreed to the settlement announced today. The three nationwide credit reporting agencies have been in compliance with federal and state law, but as we showed in launching the National Consumer Assistance Plan, we do not hesitate to make improvements beyond what the law requires when doing so will benefit consumers. With the exception of the financial payments the credit reporting agencies are making to the attorneys general to cover the costs of their investigations, consumer education and other purposes, the settlement essentially adopts the plan announced with the New York attorney general.” As I’ve said time and time again, at Experian we are continually – and voluntarily – enhancing our internal processes to create solutions that improve the experience consumers have when working with us. We’re striving for ever-greater accuracy, streamlining the dispute process and helping consumers understand the fundamentals of credit management and how they can benefit from this growing marketplace reliant upon credit. We are proud of this work, but we’re not satisfied yet. We will continue to work to empower the American consumer in a way that is secure and accurate – just as we have been doing for years. You have our commitment.