Using Credit Scores for Inbound Marketing: It’s Easier Than You Think

This is a guest blog article from Joan Sparks, of Tranzact Information Services.  Joan is a HubSpot user, a VP of marketing and thought leader in credit marketing data technology & strategy.  Her advice will teach you how to utilize consumer data to create more targeted offers to your prospects with higher results.

Marketers shy away from using credit scoring data to target their offers to customers because it seems like a major effort to leverage bureau data and complete paperwork. But most marketers don’t know there are ways to use “credit-based” data that are convenient, powerful and inexpensive. More and more companies are doing it.  It’s becoming commonplace in situations where a large purchase is being considered and marketers must optimize offers throughout the selling process.

Why a Consumer’s Financial Situation is More Relevant Than Ever to Closing Business:

Recent articles in the Wall Street Journal, USA Today and studies such as The 2011 Ipsos  Mendelsohn Affluent Survey paint a picture of U.S. consumers as increasingly divided by wealth and discretionary income.  Companies are developing products and services specifically for customers with prime, near prime and subprime credit.  

What Types of Industries Are Already Seeing a Better ROI Using Credit Data in Marketing?

• The Mortage/Real Estate Industry Mortgage Prospecting White Paper

• Automotive Automotive Case Study

• Credit Unions / Banks Credit Union Times Article

• Insurance Companies/Brokers

• Home services such as alarms, remodeling, warranties and repair

How to  Incorporate Credit Data in Your Inbound Marketing
Marketers typically start with ”"credit proxy scores" early in the sales funnel. A credit proxy score, such as Tranzact Information System’s Risk Insight is an estimate of the consumer’s score that is likely to be 80% accurate.  It does not require a credit bureau approval or special paperwork. And such proxy scores cost less than actual credit data .  The credit proxy score identifies: High Prime, Prime, Near Prime, Subprime and Deep Subprime individuals.  By scoring an incoming lead (from lead generator, your site or a call center) a marketer can:
 
    1.    Optimize offers
    2.    Optimize sales follow up or nurturing

Consumers with good credit should be offered incentives such as “no payments for 90 days”, larger product bundles (Cable TV offers, home security, cell phone plans, insurance coverage, etc.) or higher priced products.  Alternatively customers with low credit proxy scores may qualify for and respond best to smaller product bundles with longer payment terms, pre-paid cards, etc.  

Leads can also be routed based on credit proxy score.  The highest potential prospects should be prioritized higher and routed to highly-skilled sales people.  Less qualified leads may be transferred to email nurturing.  Testing by a major cable TV provider and a credit card issuer has consistently shown that offer optimization based on credit proxy scores improves response and satisfaction.

Timing Optimization
As the consumer progresses through the purchase funnel, the full credit report can be pulled.  In addition to the score, credit data also contains “triggers” which are indications a consumer has applied for credit for an auto, credit card, insurance or other type of loan.  If your business grants credit or offers insurance, these triggers tell you exactly when a consumer is “in market”.  These are your hottest prospects.

Unique Targeting Capabilities
A full credit report also contains a variety of valuable data for offer targeting, such as on a current loan, auto lease maturity data, etc.  So if a customer seems a good fit for your company’s product or service, it makes sense to spend the extra cents and get full report so you can target very precisely and make a relevant offer.

Help Getting Started With Marketing Using Credit Data
Interested in learning more about optimizing your marketing budget by leveraging the best combination of actual credit and proxy credit data?  Visit tranzactis.com, our website contact us page, or call 800-488-9113 directly to speak to one of Tranzact Information Services’ knowledgeable direct marketing professionals. They will be happy to evaluate your current marketing strategy at no charge and identify areas you can increase ROI by using credit and credit proxy data.