Are you filling in the data knowledge gaps?

Reaching more people and growing market share remains a top priority for many lenders to ensure growth targets are met with a forward-thinking, progressive strategy for the next few years.

The approach is underpinned by putting customers firmly at the centre of the business strategy, making it more possible to cross-sell, upsell and market appropriate offers to the right customer groups.

One of the most common methods is to bring customers on board with one offer, with an aspiration to develop those relationships over time and increase their product take up.

Understanding more about the unique traits of each individual customer is the most critical challenge reported by lenders. What information and insight is appropriate to be able to do this? Naturally, lenders will already hold a lot of information about their existing customers. But, is it up-to-date? Does it reflect the current position, or indeed the future?

If not, then it could restrict your view and understanding of key customers and weaken the approach taken with them. Knowing as much as you can about a customer can also enlighten you to how they are managing relationships with your competitors too. For example, do they have a single, low-cost product with you, but multiple with another lender? The insight not only supports better risk assessment, but also enables a full understanding of customers’ individual behaviours.

Looking at new customers, with little or no historic information about them, how do you know if your offer is appropriate and suitable for them? More importantly, how do you know if they are even interested in anything you have to offer?

It’s a critical lack of understanding that can impair your view and leave accurate decision-making hamstrung. For example:

Launching a new product

A new product could mean a new customer group. Not necessarily brand new to you as an organisation, but new in terms of marketing. Do you know who they are? Where they are? What they are inclined to want as customers?

Redefining customers

As time evolves, so do people. Are you still approaching the customers that you have today in the same way you did five years ago? Have you taken the time to check if there has been a change in behaviours?

Reduced credit scoring

A lack of data means a lack of insight into whether what you are offering is right for that customer. But do you know what to offer if you have no analysis and data insight to start from?

New to market

Success hinges on automated decision-making for many. But insufficient mature data may result in weaker scorecards and mean you are offering inappropriate products to the wrong customers which could lead you, and them, into difficulties in the future. On the contrary, declining someone for whom your product is right could mean you are missing out on a valuable customer relationship.

This is when accessing a generic sample of data becomes particularly useful. By accessing the wealth of data available to Experian you can understand your market better and implement the strategy most adapted to your target audience. When there’s something concrete to work with, accurate and appropriate decision-making, strategically aligned for everyone’s benefit, will be far more straight forward.

To find out how our generic samples of data can enable you to access powerful sources of insight on your customers or future customers and fill knowledge gaps, please contact our analytics team on 0844 481 5638 or email decisionanalyticsUK@uk.experian.com