optimize portfolio
TRANSCRIPT
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MANAGEMaximizing portfolio value and profitability
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How does this impact customer management strategies?
Monitor and analyze performance across the portfolio and key segments including capital consumption, liquidity, requirements and economic profit
INCREASE PORTFOLIO VALUE
Optimize capital usage lending to lower risk customers and reduce limits on under utilizers, while continuously improving provisioning
Enhance governance procedures and continuous monitoring of portfolio performance and stability
ENSURE COMPLIANCE AND REDUCE REGULATORY RISK
Leverage data and analytics to generate increased take rates and expand relationships
MAXIMIZE REVENUE WITH HIGH VALUE CUSTOMERS
Proactively retain high potential customers and monitor needs and channels for increased utilization
ENHANCE CUSTOMER SATISFACTION
Identify self-cure customers; rehabilitate potentially good customers; work out broken customer relationships
REDUCE BAD DEBT
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Intelligent portfolio management strategies that uncover profitable opportunities within your existing portfolio while efficiently managing risk and potential losses.
HOW CAN WE TAKE ADVANTAGE OF
OPPORTUNITIES WITHOUT ADDING RISK?
WHAT ORGANIC GROWTH OPPORTUNITIES ARE IN OUR PORTFOLIO?
ARE WE CONSISTENTLY MANAGING BAD DEBT?
WHAT MITIGATION STRATEGIES DO WE NEED
TO LIMIT LOSSES?
ARE PORTFOLIO MANAGERS SPENDING TIME
ON THE RIGHT ISSUES?
DECISIONING PLATFORM
Are you maximizing your portfolio’s potential?
DO WE HAVE A COMPLETE VIEW OF OUR PORTFOLIO?
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Marketswitch Optimization®
How it works
MARKETSWITCH OPTIMIZATION®
Decision software based on patented mathematical and constraint-based optimization technology that enables organizations to identify the best consumer level decision for complex business problems across the Customer Life Cycle.
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Groups customers according to similar traits
Create macro segments data profile
PROFILING
Rank order customers on a single behavior
Creates broad segments, e.g. good / bad odds
PREDICTIVE SCORING
Matrixes two or three predictive model dimensions
Refined segmentation based on “subjective” trade-off arbitration
BUSINESS RULES
Considers all defined key business metrics
Creates optimal, personalized, customer decisions maximize organizational objective
OPTIMIZATION
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Marketswitch OptimizationUnique differentiators
Constraint-based optimization is the key
At it’s core, it is an allocation process which delivers TRULY OPTIMAL DECISIONS based on strict mathematical analysis, by BALANCING MULTIPLE DECISION VARIABLES within the limits established by the constraints
MATHEMATICAL, CONSTRAINED OPTIMIZATION is a specialized approach derived from operations research
Constrained optimization significantly outperforms current best practice approaches by EVALUATING THE ENTIRE SET OF ACTIONS/OFFERS SIMUTANEOUSLY rather than one at a time
Constraint-based optimization is the key
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Marketswitch OptimizationUnique differentiators
Offer “A”
Offer “B”
Offer “C”
Offer “D”
Offer “E”
Offer “F”
Mon 5/5
Wed 5/7
Tue 5/13
Mon 6/2
Fri 6/6
Phone
Internet
Face-to-face
Wireless
Solves for multi-dimensional problems given typical business constraints ─ multiple decisions applied to individual consumer
T Y P I C A L C O N S T R A I N T S
• Lifestyle needs• Contact rules• Competition
• Maximum mail volume
• Inbound capacity• Contact history
• Product profitability• ROI hurdles• Sales targets
• Resource capacity• Budgets• Events
Internet
Face-to-face
Wireless
CUSTOMERSThousands/Millions
CHANNELSMultiple
OFFERSHundreds
TIMINGAny day/time
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Decrease losses with early intervention
O P T I M I Z E C O L L E C T I O N S & R E C O V E R Y
H O W W E H E L P Early warning using proactive risk
assessment and monitoring Automate account handling and
treatment strategies Pre-delinquent treatments, in-
collections actions and treatments Consistent, timely and relevant
customer messaging
V A L U E D E L I V E R E D Optimized resource productivity
and effectiveness Fewer and faster recoveries Reduction in operational costs Increased cash flow Higher customer satisfaction and
retention
PREMIER ATTRIBUTESSM
TALLYMAN™
CUSTOM BUSINESS INTELLIGENCE
& ANALYTICS
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Custom Business IntelligenceHow it works
• Ability to contrast an organization with the overall market and specific competitor groups
• Unique data perspective that incorporates the use of both credit and demographic information
• Contrast new versus existing customers
• Trend analysis over time
• Profile customers versus prospects
• Analytically derived conclusions
CUSTOM BUSINESS
INTELLIGENCE
A customized, comprehensive, consultative offering that allows Experian Decision Sciences to partner with your organization to better understand your customer base.
C U S T O M I Z E D S O L U T I O N S
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Custom Business IntelligenceMarket assessment analysis
MARKET SHARE What percentage of the market does my organization represent?
PROFILING What is the credit and demographic profile of my customer base?
DELINQUENCY How does my customer base perform in terms of delinquency measures?
PRODUCT MIXWhat types of products does my customer base have with other lenders based on the credit line?
CROSS-SELL How many of my customers have multiple products and what are these products?
DEBT MOVEMENT How many of my customers have atrophied and to where?
PRODUCT PRICING What is the average rate, loan terms, etc. of my customer base?
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Premier AttributesSM How it works
The credit industry’s most robust, accurate and comprehensive set of tri-bureau leveled attributes, enabling organizations to make more strategic and data-driven decisions across the Customer Life Cycle.
PREMIER ATTRIBUTESSM
Premier Attributes are analytically derived metrics that capture granular consumer views, leading to greater decisioning precision
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