Businesses can gain valuable customer insights from the data they already have, Equifax VP, Data Science and Decision Analytics, Digital Solutions Dilip Singh writes in the new PYMNTS eBook, “The Implications of Uncertainty.”
Revenue growth is a top priority for most businesses. There are various ways to bring in more money — but not all strategies are safe or stable. And unfortunately, attempts to balance risk with reward are often incomplete.
For example, it’s common practice for businesses to try to broaden their sphere of influence and reach new audiences. Other businesses want to drive more value from the customers they already have.
Both of those techniques have proven to be effective in the past. And they can still be effective today — if you have the right KPIs in place. In this day and age, the focus needs to be on quality instead of quantity. You want more revenue — from good customers.
Prioritizing volume alone can cause uncertainty, unexpected risk, and negative ROI. But with data, you can better understand the potential impact — good or bad — each individual could have on your business.
Fortunately, because of the digital world we live in, there is an abundance of data available for analysis. Unfortunately, accessing that data can be challenging. Businesses often spend a lot of money on third-party data that ends up being inaccurate and irrelevant.
In response, trust and safety company Kount, an Equifax company, developed a fully compliant consumer insights solution that empowers you to draw accurate conclusions about the individuals interacting with your brand. Without revealing consumer PII or any merchant data, we can help you gain insights from the data you already have.
Examples of insights provided include:
The robust data enables dozens of different use cases. Ultimately, because Kount has combined multiple capabilities into a single technology platform, fraud detection software — and its data analysis capabilities — becomes a revenue-generating engine rather than a cost center.
For example, your own data can tell you when a customer files a chargeback. Consumer insights can tell you the odds of it happening again. Maybe the chargeback at your business was a one-time occurrence because of a mistake on your part, and the shopper should be given a second chance. Or maybe that customer disputes purchases more often than not and should be banned permanently.
Another example is qualifying leads. Your own data can tell you when a new lead comes into your sales funnel. Consumer insights can tell you whether or not the lead is a good fit for your business. Does the prospect seem risky or safe? Is the contact information real? Does the individual match your target buyer? Then, you can decide if there is value in continuing your marketing efforts or if you should move on to the next target.
As margins shrink and economic woes mount, it’s important to remember a fundamental business truth: not everyone is an ideal customer. It can be tempting to take more risks in an effort to bring in more revenue. Instead, use data to validate the quality of interactions so you can safely and confidently grow your business.
