Case Study: Express Gifts (Debt Management )
Business Challenge
Express
Gifts Limited is a leading mail order business offering home catalogue
shopping to millions of UK consumers through a range of brand names.
With a turnover of over £250 million it has 1.5 million customers
and 1400 permanent employees. Express Gifts use an automated decisioning
system with credit scorecards for applicants applying for a credit
account. The company, like many other retailers, has seen a shift
in the UK consumer credit market, with new types of customers on their
books, and customers coming to the company in new ways, in particular
through the Internet. Changes like this can affect the predictive
power of the scorecards used, as they become less representative of
the potential customers in the market.
The Decision Analytics answer
Experian has worked closely with Express Gifts over the past five years, providing hosted application processing, credit bureau data and scorecards. Express Gifts were confident that Experian’s knowledge of its business, as well as over twenty years of experience in building risk models on a combination of bureau and application data, made it the best choice to build the new suite of scorecards.
The Benefits
- ROI in 12 months
- Reduction in bad debt levels
- Reduced exposure by declining higher risk applicants
- Increased confidence in the decisions made
- Accurate assessment of scorecard value
"The scorecards developed by Experian have enabled us to make more
reliable risk-based decisions on new applicants and have had a highly
beneficial impact in reducing bad debt levels of new customers."
Case Study: Express Gifts (Scoring)
Business Challenge
Express Gifts use an automated decisioning system with credit scorecards for applicants applying for a credit account. This creates an accurate risk assessment to decide whether to accept or reject an applicant and to set an appropriate initial credit limit. With the changes in the market, Express Gifts recognised that its suite of scorecards were showing signs of deteriorating predictiveness and a redevelopment would provide more accurate decisioning for the organisation.
The Decision Analytics answer
Experian has worked closely with Express Gifts over the past five years, providing hosted application processing, credit bureau data and scorecards. Express Gifts were confident that Experian’s knowledge of its business, as well as over twenty years of experience in building risk models on a combination of bureau and application data, made it the best choice to build the new suite of scorecards.
The Benefits
- ROI in 12 months based on the additional value delivered from the scorecards
- Reduction in bad debt levels as more accurate decisions are made on applicants
- Reduced exposure by declining higher risk applicants and setting more appropriate credit limits for accepted customers
- Increased confidence in the decisions made with accurate scorecards for better risk management
- Accurate assessment of scorecard value using initial Champion/Challenger strategy deployment
“The scorecards developed by Experian have enabled us to make more reliable risk-based decisions on new applicants and have had a highly beneficial impact in reducing bad debt levels of new customers.”