See how Experian data has enhanced KeyBank s marketing campaigns

Transcription

1 See how Experian data has enhanced KeyBank s marketing campaigns

2 Introducing: Mitch Kime KeyBank Catherine Wright Experian

3 How many of you have more than one credit card in your wallet? Do you use each card in the same way? 3 Experian

4 Insights Understanding who your customer is and how they use credit, will offer you the opportunity to optimize your communication and offer strategies through relevant retention strategies, offers, lines, balances and communication. 4 Experian

5 Consumers with two or more bankcards Differences in card use How many cards does an average consumer have? 4.2 How many cards do they use? Over 85% of consumers have balances on at least one card 31.6% have all their balances on one trade 55.5% consumers distribute their balances across trades 5 Experian

6 Segmentation Does the consumer have high annual spend on credit cards? Is the consumer likely to consolidate their debt? Does the consumer use revolving credit? Is the consumer high risk? Does the consumer have balances or spend off you? Is the consumer paying a high rate on their revolving lines? Is the consumer s debt spread across multiple credit card products? Is the consumer likely to open a new tradeline in the next 2 4 months? 6 Experian

7 Experian Trended Data 24 months of history on key data fields for every trade Trade #1 Bank name Account number Open date Credit limit Balance Actual payment Loan type Account condition Account status Special comment Months reporting Minimum payment due Months since update Date of payment Visa /9/1990 $25,800 $13,300 $1,000 Credit card OPEN CURR ACCT CH 231 $275 1 Aug-13 Trade #1 Balance Credit limit Minimum payment due Account payment Date of payment Month 0 $13,300 $25,800 $275 $1,000 Aug Month 1 $14,680 $25,800 $280 $1,000 July Month 2 $16,060 $25,800 $286 $1,000 June Month 3 $17,440 $25,800 $297 $1,000 May Month 4 $18,820 $25,800 $310 $1,000 April Month 5 $20,200 $25,800 $330 $1,000 March Month 6 $21,580 $25,800 $343 $1,000 February Month 7 $22,960 $25,800 $350 $1,000 January 7 Experian

8 Trended Data Differentiating consumers through payment data Consumer A Consumer B Consumer C Average monthly balance: $3,462 $3,435 $3,465 VantageScore : $7,000 $6,000 $5,000 Total Bankcard Balance Total Bankcard Payments Monthly balance and payments: $4,000 $3,000 $2,000 $1,000 $- Jan Feb Mar Apr May Jun Jul AugSep Oct NovDec Jan Feb Mar Apr May Jun Jul AugSep Oct NovDec Jan Feb Mar Apr May Jun Jul AugSep Oct NovDec Total annual payments: $1,126 $22,390 $42,429 Average % of balance paid: 2.6% 53.4% 100.0% 8 Experian

9 Power of the profile + the depth of trended credit data = ready-to-deploy solutions Credit Profile Access to the freshest, most accurate data built on the knowledge we have on more than 220 million credit-active consumers nationwide enables companies to make informed business decisions Trended Data Historical data fields provide the building blocks for a deeper view of a consumer to assess changes in risk, profitability and product needs Credit3D Balance Transfer Index SM, In the Market Models SM, Estimated Interest Rate Calculator (EIRC SM ) 9 Experian

10 Trended Data What are the benefits? Knowing how a consumer uses credit or pays back debt over time can help clients: Offer the right products and terms to increase response rates Determine up sell and cross sell opportunities Prevent attrition Identify profitable customers Avoid consumers with payment stress Limit loss exposure 10 Experian

11 KeyBank Using Balance Transfer Index SM and other targeting tools 11 Experian

12 Balance Transfer Index SM model (BTI) KeyBank s performance background and evolution Background: KeyBank re-entered the card business in 2012 to drive two strategic benefits: 1) To drive a strong new revenue stream 2) Deepen day-to-day customer engagements During conversion, there was a blackout no-marketing period in 2013 through January First Niagara conversion Objectives: Intelligently target customers most likely to respond to convenience check offers Eliminate unnecessary marketing mail costs Increase non-interest fee income GOAL: Identify opportunities to intelligently market to customers at the right time, with the right offer, maximizing marketing investment 12 Experian

13 Balance Transfer Index SM model (BTI) KeyBank results Impressive results! Saved $250,000 in annual marketing expenses Maintained 95% of responders with 30% reduction in mail volume Generated over double forecasted fee income volume 13 Experian

14 Use data to influence behavior KeyBank has opportunity to understand more about their customers and apply treatments to impact behavior Treatments must be timely, convenient and relevant to trigger response Understand how to more successfully cross-sell customers Reinforce both tangible and intangible cardholder benefits Optimize offers based on potential and opportunity to balance incentive costs Segmenting a customer, based on their revenue potential, likelihood to respond, credit behavior and risk profile can help establish the right product for the consumer 14 Experian

15 Annual Spend Balance Transfer Index SM Segmenting spend and revolving balance for revenue opportunity New Trades (0-6 MOB) Existing Trades (7+ MOB) Revolving Balance Revolving Balance <2K 2-20K 20K+ <2K 2-20K 20K+ <1k <1k k k k k k k k k k k k k k k k k ,006 Generic performance charts show 1.4% overall balance transfer rates, however those in 400 range at a BT rate of 10.2% and 500 range at a BT rate of 15.8% ~ 677 customers $2,192 revenue per customer ~ 19,701 customers $2,039 revenue per customer 15 Experian

16 ITMM - Bankcard Deciles In the Market Model SM for bankcard KeyBank trades revolving balance BT Index - Deciles $149 $523 $1,311 $3,397 $6,044 $8,727 $9,166 $11,050 $11,243 $10, $153 $318 $797 $1,533 $3,301 $5,018 $5,394 $6,805 $8,441 $8, $147 $304 $458 $1,258 $2,461 $3,022 $4,330 $5,880 $7,008 $7, $145 $299 $546 $788 $1,823 $2,403 $3,551 $4,287 $5,989 $7, $125 $237 $407 $735 $1,629 $2,113 $3,334 $4,011 $5,392 $5, $172 $219 $401 $785 $1,168 $1,777 $2,617 $3,470 $4,680 $5, $210 $250 $400 $603 $908 $1,612 $2,283 $3,162 $4,142 $5, $144 $258 $256 $720 $967 $1,364 $1,656 $2,297 $3,291 $4, $168 $253 $303 $593 $711 $1,002 $1,593 $1,873 $2,530 $3, $1,113 $325 $398 $346 $501 $701 $820 $1,504 $1,920 $3,060 This is highly effective as a retention strategy Convenience checks or other rate based offers can be used to decrease attrition 20% of existing card holders fall into higher attrition risk segments Dark purple boxes High BT Index, attrition risk BT revolving balances off of U.S. Bank (4.2% of existing card holders Fuchsia boxes High BT index and High ITMM score top 12% most likely to open a new trade and transfer balances Blue boxes High BT index; moderate ITMM (3.9% of existing card holders) Gray boxes low BT index and low revolving balance; unlikely to transfer balances (40%) 16 Experian

17 Wallet share capture vs. retention Targeting high opportunity clients with more aggressive offers Off KeyBank spend In the Market Model SM score Wallet share Gain wallet share Target with aggressive spend / usage campaign, CLI Off KeyBank spend In the Market Model SM score Wallet share Retention opportunity Proactive internal upgrade, benefit reinforcement, CLI 17 Experian

18 Wallet benchmarking KeyBank has opportunity to take revenue from competition 18 Experian

19 Top wallet breakout Opportunity for revenue exists for those existing customers where the client is not top of wallet Spend is much higher for other top of wallet trade Average credit line is higher for other top of wallet, allowing for more spending power 19 Experian

20 EIRC SM by Experian TAPS SM spend band 20 Experian

21 Summary Propensity models can help identify customers with high appetite for balance transfer Balance Transfer Index SM, combined with behavioral segmentation can identify profitable customers that help: Grow portfolio balance and increase portfolio profitability Reduce balance attrition Grow ROMI Trended solutions help to develop meaningful targeting strategies This will help to establish the right product and offer for the consumer at the right time 21 Experian

22 Questions and answers Experian contact: Catherine Wright 22 Experian

23 Share your thoughts about Vision 2017! Please take the time now to give us your feedback about this session. You can complete the survey at the kiosk outside. How would you rate both the Speaker and Content? 23 Experian

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