credit marketing strategies to capture today's digital consumer

Credit Marketing Strategies to Capture Today’s Digital Consumer

©Experian 2

Speakers

Andrew Davidson

SVP/Chief Insights Officer

Mintel

Scott Gordon

Sr. Director of Digital Credit Marketing

Experian

Reshma Peck

VP of Marketing

Experian

©Experian 3

Agenda

1.Mintel insights on digital credit landscape2.New Experian insights and analysis3.An integrated digital credit marketing approach4.Q&A

4

Mintel Reports: In-depth market

analysis and consumer

trends

Asks 30,000 people

their opinions each month

Mintel Comperemedia: Omnichannel marketing

strategy platform

Analyzes marketing strategies of

over 100,000 companies

Mintel ePerformance: Email success metrics

in real time

Monitors performance of

1 million inboxesMintel Trends:

Leading edge collection of

the latest in global innovation

Tracks more than 75 consumer

lifestyle trends and publishes

thousands of observations

Mintel

Research

Consultancy: Custom Solutions for

consumer insights and

competitive Intelligence

Quantitative, qualitative,

field research and custom

panel solutions

THE

CONSUMER

YOUR

FOCUS

THE

COMPETITION

WHAT’S

NEXT

THE

RESULTS

MINTEL

KNOWS

5

How Obtained New Card Application

Offer Channel Q1-15 Q1-16 Q1-17

Digital 43% 45% 49%

Online on Website of Card/Bank 13% 15% 13%

Online from Email of Card/Bank 10% 9% 12%

Online on Third-Party Website 11% 8% 10%

Card or Bank Mobile App 3% 4% 6%

Text Message 3% 4% 2%

Social Media 4% 5% 5%

Mail 24% 23% 22%

Mail with ONLY offer/application 17% 17% 15%

Mail with Bill/Account Statement 7% 6% 6%

In-Person 23% 24% 20%

Offer from person in Bank/ATM 10% 10% 8%

In-Person at Kiosk/Store 7% 6% 6%

Picked up Brochure/Application 6% 7% 7%

Phone 7% 6% 7%

Offer from Phone Call to/from Bank or Card Company 7% 6% 7%

Other 3% 3% 3%

Digital Channels Now Account for Nearly Half of All New Applications

Q. Which of the following best describes how you obtained the offer for the [Card]?

6

244

355

247 239281 302 301 293

258

681

759

644

885

852

854

797

785

627

0

100

200

300

400

500

600

700

800

900

1,000

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

Millio

ns

Pre-screened

ITA

Mail Volume at a 4 year low

Credit Card Acquisition Mail Volume

7 Source: Pathmatics 12 months ending 5/9/2017

Chase Tops Amex on The Points Guy in the Last 12 Months

Chase spend: $3.7M in the last 12 months

Amex spend: $1.5M in the last 12 months

8

Dynamic Ads Plus “The Future of Travel” Video Series

“Travel’s changing. Carry the only

card designed to stay ahead.”

9

Chase Slate on Snapchat

10 Source: Mintel ePerformance/eDatasource as of 3/5/2017

Chase Launches Huge Email Cross-sell Campaign

April 7th:

4.9 million emails sent

Sapphire Preferred:

1.5M emails

Multi-card:

1.4M emails

Slate:

1.2M emails

Freedom Unlimited:

796k emails

April 29, 2016

Mobile App

Home Screen

11

Opportunity: Pre-screened Email

…but just 3% of acquisition

emails were pre-screened in

Q1 2017

7%

8%

9%

9%

10%

44%

Credit One

SunTrust

Citi

Navy FCU

Wells Fargo

USAA

Issuer Share of Pre-screened

Acquisition Email: Q1 201712%of new card applications

were obtained via email in

Q1 2017

12

US Bank Altitude Reserve Invites Include a VR Experience

13

Application Channel Q1-15 Q1-16 Q1-17

Mail (Paper) 8% 9% 6%

Digital 66% 65% 72%

Online on Website 36% 32% 31%

Online on Tablet 11% 12% 12%

Mobile 19% 21% 28%

Mobile Website 11% 11% 16%

Mobile App 4% 6% 9%

QR/AR/Mobile Code 4% 4% 4%

Phone 8% 8% 7%

In-Person 18% 18% 15%

Q: How did you or another member of your household submit the application for the [Card]?

A Record Percentage of Applicants Applied via Digital Channels in Q1

How Submitted New Card Application

40%

14

The Importance of a Seamless Application Experience

Wells Fargo’s Mobile

Application Experience

15 Source: Mintel Comperemedia, Offers with No Application Forms, April 2017

Capital One Drives Digital Applications via Direct Mail

0

10

20

30

40

50

60

70

80

90

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17

Millio

ns

American Express Bank of America Barclays Capital One

Chase Citibank Discover First National Bank of Omaha

U.S. Bank USAA Wells Fargo Others

Volume of DM with No Paper Application Form

©Experian 16

Experian insights and analysis

©Experian 17

Evolving consumer media preferences

1990’s 2000s 2010s

Consumer spend more

time on mobile apps

than mobile web:

86% vs. 14%

©Experian 18

Marketers respond…

How has ad spend shifted?

Mobile ad spend surpassed

digital display in 2016

Mobile to account for over

70% of digital spend by 2019

©Experian 19

Analysis – How we did it

VantageScore® GenerationTrend ViewSM

Consumer credit data

Consumer behavior data

Mobile users

Email engagement

Online display

Mobile display

Direct mail

Broadcast cable TV

TrueTouchSM segment

Mobirati

Social connectors

Pragmatic adopters

Basic planners

Mobile professionals

No mobile phone

©Experian 20

About the sample: Scorable vs. consumers

©Experian 21

These mobile users are your Prime audience…

0%

5%

10%

15%

20%

25%

30%

Mobirati SocialConnectors

PragmaticAdopters

Basic Planners MobileProfessionals

No MobilePhone

VantageScore® for mobile users

Deep Subprime Subprime Nonprime Prime Super Prime

©Experian 22

Mobile users are mainly revolvers and transactors

0%

5%

10%

15%

20%

25%

30%

Mobirati SocialConnectors

PragmaticAdopters

BasicPlanners

MobileProfessionals

No MobilePhone

Mobile user Trend ViewSM segments

Consolidator Rate Surfer Revolver Transactor Mixed

©Experian 24

Experian’s prescreen solutions support this integrated vision

Cross channel targeting / retargeting in :

- Direct mail

- Email (1st party and Acquisition)

- Digital Display

- Measurement

Supports PreScreen and PreQualification

©Experian 25

Digital channel dynamics and consumer expectations drive pressure to be a steward of identity information

DATA INTEGRITY TECHNOLOGYCUSTOMER

EXPERIENCEREGULATORY

©Experian 26

Data Integrity

Who are you?Are you who you

say you are?

Is our transaction

a legitimate one?

Are you still who

you say you are?

DATA INTEGRITY

©Experian 28

Marketing Technology and Expertise

“As FCRA marketers, we’re held to a higher

standard – a small price to pay for the benefit

being able to use regulated data sets to reach

our perfect consumer.”

TECHNOLOGY

©Experian 29

Consistent ConsumerExperience

1. Have real-time data

2. Serve the right offer to theright consumer

3. Ensure ads and communicationsare complimentary

CUSTOMER EXPERIENCE

©Experian 31

1. Try new acquisition channels

2. Develop omnichannel strategies that integrate across channels

3. Lead with the mobile application experience

4. Look for new ways to pre-screen consumers

5. Maintain checks and balances

6. Above all, be compliant!

Best Practices