Experian Plc · LSE:EXPN

Experian — Experian Vision 2012

28 slides from Experian's conference presentation, 2012

Slide 1: Holistic debt management — a next generation strategy to enhance the collections process
Holistic debt management — a next generation strategy to enhance the collections process Kam Newman | Direct Energy Jeff Bernstein | Experian © 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Inf
Slide 3: Today's agenda
Today’s agenda  Overview of holistic debt management best practices  Industry case studies  Questions and answers  Summary © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 3
Slide 4: Industry trends: holistic debt management best practices
Industry trends Holistic debt management best practices  Focus on risk-based strategies, not time- based activities  Expanding use of external data for micro segmentation  Aggressive collections treatment against high risk customers  Maximize the productivity and performance of internal and exte
Slide 5: The fundamental challenge: which customers and which treatment?
The fundamental challenge Which customers and which treatment? Most productive effort Operational Charge-off savings Low risk High risk reductions 80% 20% 20% 80% must be must be will pay convinced convinced will NOT on their own to pay to pay pay Early delinquency Late delinquency Segmentation avoi
Slide 6: Best practices in collections decisioning and operational execution
Best practices in collections decisioning and operational execution  Behavior and preference characteristics of various Internal contact channels data  Internal triggers and usage patterns  Demographic data – income, wealth, age / gender, household composition, property characteristics, etc. Exte
Slide 7: Micro segmentation: know your customer
Micro segmentation Know your customer Attitudes, opinions What does the customer believe? and beliefs What do they value? Demographics What does the customer look like? Cause What is the cause of distress that of distress the customer is experiencing? Channel What channel does the customer engagemen
Slide 8: Micro segmentation: know your customer
Micro segmentation Know your customer How do I leverage knowledge of Economic trends economic trends across the country? Relationship How do I leverage knowledge of the relationships my customer has? Customer value How much is the customer worth? Who does my customer pay first? Transactions What are
Slide 9: Best practices in collections decisioning and operational execution
Best practices in collections decisioning and operational execution Data Scores Scorecard examples  Behavior Accounts  Indebtedness Internal Non payers  Bankruptcy data Payers  Income Score Generic and custom scorecards are available  Generic models External Modeling  Custom models Segmentatio
Slide 10: Best practices in collections decisioning and operational execution
Best practices in collections decisioning and operational execution Data Scores Decision systems Accounts Number of days in collections Internal Non payers Less than 30 days Credit score data Payers High risk Medium risk Low risk Score 30+ days Customer-level 60+ days optimization 90+ days External
Slide 11: Best practices in collections decisioning and operational execution
Best practices in collections decisioning and operational execution Decision systems  Segment customers Number of days in collections Less than 30 days  Apply scorecards Credit score  Assign strategies / actions High risk Medium risk  Apply champion / challenger Low risk  Simulate new strategie
Slide 12: Best practices using optimization
Best practices using optimization Constraints applied such as:  Customer contact Constraint-based  Channel capacities optimization  Treatment volume minimums and maximums (maximize return)  Contact frequencies, etc. © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Public
Slide 13: Using optimization for field collections
Using optimization for field collections Different scenarios / business goals can now be run against the accounts entering the field for termination  Highest arrears  Location coordinates  Age of arrears  Defaulted payment plan  Number of days in the eligible  Meter location (inside vs. outsid
Slide 14: Best practices in collections decisioning and operational execution
Best practices in collections decisioning and operational execution Data Workflow Automated  Workflow rules Scores  Real-time re-segmentation Decision systems Manual © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 14
Slide 15: Agency management: profit motives of agencies and clients
Agency management Profit motives of agencies and clients are not often aligned Client 2 Client 3 Client 6 Client 1 Client 11 Sweet Client 4 Spot You Client 5 Client 9 Client 10 Client 8 Client 7 Agency sweet spot Commissions received greater than the cost to collect © 2012 Experian Information Solut
Slide 16: Agency management: segmentation by liquidation value
Agency management Segmentation by liquidation value for yield adjusted pricing Liquidation model $0–199 @ 32% Agency 1 $200–399 @ 30% Leverage reporting to measure Agency 2 performance of agencies against $400–599 @ 28% defined liquidation model forecast by segment and provide Agency 1 $600–799 @ 26
Slide 17: Agency performance
Agency performance … Using vintage liquidation curves 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Jan 2011 batch Feb 2011 batch Mar 2011 batch © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 17
Slide 18: Agency management: agency scorecards and competitive market share
Agency management – Improving performance through agency scorecards and competitive market share  Weight liquidation performance through the assignment cycle  Assign scores by performance ranking  Adjust scores by audit issues and other performance criteria  Publish scorecard results to all agen
Slide 19: Best practices in collections decisioning and operational execution
Best practices in collections decisioning and operational execution Data Management information Scores Decision systems Workflow © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 19
Slide 22: Credit decision optimization
Credit decision optimization  Smart meter vs. analog meter  Tier deposit / prepay  Thin file / no hit / alternative attributes  Fraud prevention  Debt owed 2009 2010 2011 2012 © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 22
Slide 23: Live account management
Live account management  Multiple timeline segmentation  Behavioral / predictive analytics  High risk prepay conversion  Life time value  Fraud management Q1 Q2 Q3 Q4 © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 23
Slide 24: Post charge-off optimization
Post charge-off optimization  Risk-based commission structure  Micro segmentation  Performance analytics  Next generation collection conduit  Net-back optimization Q1 Q2 Q3 Q4 © 2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. 24
Slide 26: Summary
Summary  Synthesize data to profile customers  Use segmentation to drive a risk-based collections strategy  Leverage optimization to balance competing objectives in contact channels and field services  Accelerate cash flow on recovery inventory using liquidation based segmentation  Operationali
Slide 27: For additional information, please contact
For additional information, please contact: [email protected] Vision Expert Annex Open every morning, afternoon and during session breaks  Meet session speakers  Gather information on Experian products and services  Request research and complimentary materials  Schedule one-on-one meet

Experian — Experian Vision 2012 on 6ix

Experian — Experian Vision 2012

Slide 1: Holistic debt management — a next generation strategy to enhance the collections process

Slide 2: Introduction

Slide 3: Today's agenda

Slide 4: Industry trends: holistic debt management best practices

Slide 5: The fundamental challenge: which customers and which treatment?

Slide 6: Best practices in collections decisioning and operational execution

Slide 7: Micro segmentation: know your customer

Slide 8: Micro segmentation: know your customer

Slide 9: Best practices in collections decisioning and operational execution

Slide 10: Best practices in collections decisioning and operational execution

Slide 11: Best practices in collections decisioning and operational execution

Slide 12: Best practices using optimization

Slide 13: Using optimization for field collections

Slide 14: Best practices in collections decisioning and operational execution

Slide 15: Agency management: profit motives of agencies and clients

Slide 16: Agency management: segmentation by liquidation value

Slide 17: Agency performance

Slide 18: Agency management: agency scorecards and competitive market share

Slide 19: Best practices in collections decisioning and operational execution

Slide 20: Industry case study examples

Slide 21: Voice of the industry

Slide 22: Credit decision optimization

Slide 23: Live account management

Slide 24: Post charge-off optimization

Slide 25: Questions and answers

Slide 26: Summary

Slide 27: For additional information, please contact

Slide 28: May 6–9, The Phoenician, Scottsdale, Ariz.