Trended Data – Drive Profitable Growth While Minimizing Risk
Trended data can help businesses strengthen marketing and risk management strategies, driving more profitable business growth while minimizing risk. Having deep insights into a consumer’s financial profile and behaviors over time can improve risk and marketing performance beyond the static measures used today.
Incorporating trended data into your marketing efforts can help expand your universe of prospective customers without changing your risk appetite. By analyzing financial behavior over a period of time, trended data delivers a more dynamic view of the customer. In turn, you can better gauge the trajectory of consumer spending and repayment behaviors – good or bad. What’s more, trended data helps you improve segmentation of consumers by prime, near prime and sub-prime segments.
For example, as companies are looking for new ways to grow and expand their reach, they are generally looking to the near prime segment. Are consumers in that segment a good risk? Are they improving their financial profile, or is it on a downward spiral? Analyzing data over time shows you the trajectory of spend, repayment, income , and many other financial behaviors. Trended data can help you determine how a consumer manages his/her credit over time, allowing you to extend an offer of credit, increase a credit line or offer a lower interest rate without potentially affecting your existing risk appetite.
Trended data can also help you deepen relationships with existing customers by offering the right product to the right customer at the right time. You can determine which customers may be more likely to respond to an offer, which customers may be most likely to repay a loan, which customers should get a line extension, and more. By knowing how consumers are behaving over time on your product and others, you can determine the most profitable ways to manage existing accounts, whether through credit line increases, balance transfers, cross-sell, or perhaps risk mitigation. With trended data, you are in a position to better calculate future account profitability as well as customer lifetime value.
To learn more about how Equifax can help you drive more profitable growth while minimizing risk, visit our website (www.equifax.com/business/trended-data). You might also explore our previous posts on Trended Data by visiting our blog site.
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