Press Release

CREDIT SCREENING KEY FOR MARKETERS AS FAMILY FINANCES COME UNDER MORE PRESSURE

Equifax survey reveals that 84% don't expect to get a pay rise in 2009 - adding to the challenges facing marketers

London, 23rd March 2009 - According to the latest report* from credit and marketing information expert, Equifax, the pressure on the finances of British families is being made considerably worse by a virtual countrywide freeze on pay rises, as well as a loss in overtime or shortened working weeks. "The impact of this pressure on family finances is being experienced right across the consumer marketplace" confirmed Graham Burdett, Sales Director, Equifax Consumer Marketing Services.

"But it is the financial services sector that is probably facing the greatest challenge as a result of the heightened focus on risk. Surprisingly there still doesn't seem to be a sector-wide recognition that credit data could help businesses to achieve the best possible return on investment from their marketing campaigns; helping them stay on top of changing market conditions.

"Financial services marketers are facing two challenges as we continue to tackle the turbulent economic climate: They need to operate as cost effectively; as possible as well as create products and propositions that will retain their current customers. To achieve both of these goals there has to be a better approach to customer segmentation than has been taken to date by many consumer marketers. Businesses need to understand their customers' lifetime value and ensure they are equipped to target them accordingly, with the right products and propositions."

Equifax believes that credit risk screening provides a crucial opportunity for marketers - especially where DM budgets are under pressure to demonstrate return on investment. Performed properly it could help reduce costs by only marketing to customers that meet set lending criteria for the specific product or service. As a result, application failures should be reduced and brand reputation strengthened.

Looking at existing customers, it is essential for marketers to understand the data held on individuals prior to undertaking any marketing activity. In the current climate individuals are increasingly looking to transfer and consolidate existing balances onto low interest vehicles to manage their monthly payments to address income pressures. And the importance of this focus is highlighted by the Equifax survey which found that 40% of respondents say they pay off less than 25% of their short term debts each month.

"Straightforward analysis affords financial marketers the intelligence to avoid offering additional credit to existing customers whose recent credit behaviour suggests that they may have difficulty making future payments" continued Graham Burdett. "Extending additional credit offerings to customers that already show signs of late payment on other products will not benefit businesses. But by combining internal data and analysis with external data sources and expertise, we believe the risk can be reduced and campaign performance enhanced.

"In the new world in which we are all operating, marketers need to respond faster to changing market conditions. In order for this to transpire we believe marketers need to integrate all available data sets on customers and prospects for the best possible insight and, therefore, segmentation. Ideally this is addressed by on-demand campaign management suites such as Equifax LifeSite.

"Consumer marketers who have been able, and continue, to adapt marketing strategies quickly will come out on top" concluded Graham Burdett. "Having the best insight into their customers, and knowledge to match them to revised products and propositions, will ensure their organisations prosper. This is particularly true of the financial services sector where marketers have had to adapt to changing risk strategies".

ENDS

*Survey conducted amongst Equifax Personal Solutions customers, February 2009

For further press information please contact: Wendy Harrison, Cecile Stearn, Margot Tomkinson or Jenny Staniforth at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: margot@harrisonsadler.com