Real World Adventures in Offer Management
“Maximize the long term profit potential,” “optimize your customer lifetime value,” “deliver profit through deep customer relationships.” These are some of the new wave of business mantras being adopted by players in all industries. A top 50 company needed to rethink its strategy coming out of the wild west of its industry’s massive restructuring. A goal was developed to build common cross channel strategy. After consultation with Equifax, Marketing felt they needed the ability to support the selling of the right product to new and existing customers across all inbound and outbound interaction channels. Risk needed to reduce write-offs across their portfolio. Both needed cross channel decision support delivery of offer management to their front end systems. Equifax delivered a framework leveraging our “capture, predict, optimize, and learn” philosophy.
Step one: Capture – Getting their internal IT to bring together over 30 internal data sets wasn’t going to happen quickly, so Equifax created and managed a data warehouse providing a repository that enabled a 360-degree view of the customer. This lets us deliver the key insights necessary to build behavior trends. For example:
Jon Smith has products across three lines of business but doesn’t cover his fees on one of them. Jane Doe has had good payment history and credit data to indicate she has room for more but how much more?
By managing enterprise-wide portfolio and behavioral data and augmenting it with external descriptive data, the customer was able to generate a complete, single customer view.
Step 2: Predict – The solution determined the characteristics indicative of one’s ability to pay, willingness to pay, and desire for more service. These characteristics were combined into custom decisioning models capable of predicting the buying and risk potential of the consumer. These factors combined to create insights into “what will happen next.”
Step 3: Optimize – Through a flexible decisioning framework, model output analysis could change and drive action depending on the needs of the business. Propensity to buy and expected benefit to the customer drove the ongoing optimization effort. Event and time driven triggers ensured account level analysis was happening as necessary to distinguish “what’s the best that can happen” and drive intelligence into action.
Step 4: Learn – Learning is a critical aspect of the solution. This feedback loop enabled the customer to adapt to changes in market conditions. Providing an actionable intelligence solution was critical. The solution’s ability to learn was composed of two elements:
Continual data refreshes let Marketing and Risk Management see the effect of their banding decisions on their portfolio. Were product counts per consumer increasing? Were write-offs coming down in targeted populations? Only with an ongoing data loop could these insights drive adjustment.
Visualization capabilities provide insights that drive intelligence into action. Leveraging dashboards, ad-hoc reporting, and cube analysis, empowered risk and marketing analysts to accurately identify root cause and develop strategies to positively impact their portfolio.
The Equifax solution provided a central view of customer, a flexible, analytically-driven decisioning service, and an actionable intelligence environment. In small test call centers, offer acceptance doubled as existing consumers could be adequately sold to. Marketing, prescreen, and account review regulations were managed with little to no thought from our customer, which was able to meet its offer acceptance and write-off goals from a single technology and analytics partner.
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