The intel you need on people-based marketing

by Guest Contributor 4 min read May 18, 2017

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There are about as many definitions for people-based marketing as there are companies using the term.Each company seems to skew the definition to fit their particular service offering. The distinctions are vast, and especially for financial services companies running regulated campaigns, they can be incredibly important.

At Experian, we define people-based marketing in its purest form: targeting at the individual level across channels. This is a practice we’re very familiar with in offline marketing, having honed arguably one of the most accurate views of U.S. consumers over the past three decades.And now we’re taking those tried and true principals and applying them to digital channels.

It’s not as easy as it sounds.

The challenge with people-based marketing

With direct mail, people-based marketing was easy.Jane Doe lives at 123 Main St.If I want to reach her, I can simply send her a direct mail piece at that address.To help, I can utilize any number of services, including the National Change of Address database, to know where to reach her if she ever moves.

People-based marketing through digital channels is exponentially more difficult.While direct mail has one signal with which you use to identify a consumer (the address), digital channels offer countless signals.And not all of those signals can be used, either individually or in conjunction with other signals, to reliably tie a consumer to a persistent offline ID. A prime example of this is cookies.

The problem with cookies

A cookie, in and of itself, isn’t the problem.The problem is the linkage.How was a cookie associated with the person to whom the ad is being served? As marketers, we need to make sure that we are reaching the right people with the right ad … and more importantly not reaching those people who have opted out.

This is especially true in the world of regulated data, where you need to know who you are targeting.And cookie-based linkage is controlled by a handful of companies, many of which are walled gardens who don’t share how they link offline people to online cookies and don’t collect this information directly.

They rely on other third-party websites to gather PII, and connect it to their cookies. In some cases, the data is very accurate (especially with transaction data).In some cases, it is not (think websites that collect PII when giving surveys, offering coupons, etc.).

In short, in order for youto use cookie-based targeting accurately, you need to have insight into the source of the base linkage data that was used to connect the offline consumer record to the online cookie.

This same concept applies to all forms of digital linkage that drive people-based marketing.

Why does people-based marketing matter in digital credit marketing?

With campaigns that utilize non-regulated data, such as “Invitation to Apply” campaigns that are driven from demographic and psychographic data, the consequences of not reaching the consumer you meant to target are negligible.

But with campaigns that utilize regulated data, you must ensure you’re targeting the exact consumer you meant to reach.More importantly, you must make sure you’re not targeting an ad to a consumer who had previously opted out of receiving offers driven with regulated data (prescreen offers, for example).Even if you’ve already delivered a direct mail piece with the same offer, this doesn’t negate your responsibility to reach only approved consumers who have not opted out.

Bottom line, the world of 1:1 marketing is growing more sophisticated, and that’s a good thing. Marketers just need to understand that while regulated data can be powerful, they must also take great responsibility when handling it. The data exists to deliver firm offers of credit to your very specific target in all-new mediums. People-based marketing has its place, and it can now be done in a compliant, digitally-savvy way – in the financial services space, nonetheless.

Register for our webinar on Credit Marketing Strategies to Drive Today’s Digital Consumer.

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Consumer visibility is changing Roughly 45 million Americans, or 1 in 5 consumers, are considered credit invisible or unscoreable.[1] They’re working, paying bills and participating in the economy, yet many are not fully visible during the lending process. That creates both a visibility challenge and a growth opportunity for lenders. In this Ask the Expert session, Corliss Hill, Senior Director, Inclusion and Belonging at Experian, joins Dr. Vaneesha Dutra, Endowed Professor of Finance at Morehouse College, to discuss how evolving consumer behaviors are reshaping conversations around financial inclusion and lending decisions. For lenders, visibility matters because confident decisions depend on reliable context and insight. Broader consumer signals can help institutions better understand repayment behaviors, financial stability and consumer capacity. “The benefit of banks using alternative data is that they capture a very significant and new consumer base. That's 20% of the population, 45 million Americans.”Dr. Vaneesha Dutra, Endowed Professor of Finance A more complete understanding of today’s consumers Today’s consumers often manage obligations across a wide range of payment types and financial channels, creating additional signals through cash flow activity, recurring payments and consumer-permissioned financial data. Rent, utilities, subscriptions and mobile phone payments can all provide meaningful insight into how consumers manage their financial lives. What’s changing isn’t the need for risk assessment. It’s the amount of consumer behavior lenders can now evaluate. For example, a consumer experiencing temporary financial disruption may fall behind on certain obligations while continuing to consistently pay rent, utilities and phone bills. Those recurring payment behaviors can provide important context into financial priorities and stability. “These are consumers that pay rent on time every month, pay utilities every month on time and meet many other financial obligations in a timely manner.”Dr. Vaneesha Dutra, Endowed Professor of Finance From visibility to more-informed decisioning Broader consumer insights may help lenders move from limited visibility to more informed decisioning. The conversation shifts when lenders move from asking: “Should we take a risk on this consumer?” to: “Do we have enough information to fully understand this consumer?” That broader context can help institutions: Strengthen risk assessment. Identify financially active consumers with strong repayment behaviors. Support more informed lending strategies. Alternative data isn’t about replacing established credit approaches. It’s about helping lenders build on trusted credit foundations with additional context and insight. Responsible lending starts with better context For lenders, the path forward is practical and actionable. As lenders evaluate broader consumer behaviors, three priorities become increasingly important: Modernize data strategies Incorporate broader consumer signals alongside existing credit data to create a more holistic view of repayment behavior and financial stability. Engage consumers earlier Earlier intervention may help lenders better support consumers before financial challenges become more severe. Create pathways to financial access Smaller lending opportunities can help consumers establish stronger financial profiles and demonstrate positive repayment behaviors over time. The institutions that lead will be the ones that can combine strong risk practices with a broader understanding of consumer behavior. Whitepaper: Bridging the credit divide: income, risk and inclusion in consumer finance Building on the themes discussed in this Ask the Expert session, Dr. Dutra explores how demographic shifts, evolving borrower behaviors and broader consumer visibility are reshaping lending strategies and what they mean for lenders seeking to balance growth, risk management and financial inclusion. Download whitepaper Explore alternative data with Experian Experian can help lenders combine broader consumer insights with trusted credit data to strengthen decisioning, improve risk assessment and support more-informed lending strategies. With solutions spanning identity, cash flow and advanced analytics, lenders can gain a more complete view of consumer behavior and expand access to credit with greater confidence. Learn more Watch episode 1 About our experts Corliss Hill Senior Director, Belonging Business Partner, Experian Corliss Hill is a collaborative leader well-versed in working with executive stakeholders, crossfunctional teams, external partners and community organizations to design and deliver initiatives and programs that create sustainable impact. With over 25 years of extensive experience in multicultural marketing, communications, PR and inclusion and belonging initiatives, she is dedicated to advancing equitable access to financial. Her mission is to drive impactful marketing initiatives that foster meaningful change and address systemic barriers to inclusion and the communities they serve.Hill has been a part of the Experian family since 2021, and resides in Atlanta with her daughter who is a rising 11-year-old entrepreneur. Vaneesha Dutra, Ph.D. Endowed Professor of Finance and Associate Dean, Morehouse College Vaneesha Dutra, Ph.D., serves as Associate Dean in the Division of Business and Economics. With more than 20 years of experience spanning higher education, banking and real estate, Dr. Dutra’s work focuses on the racial and gender wealth gap, financial literacy and financial decision-making. She is an active researcher and consultant whose work has earned numerous grants and fellowships, including serving as the inaugural Tracy A. Pruitt Visiting Research Faculty Fellow at the Wharton School of Business. Dr. Dutra has also been named a Research Faculty Fellow for both the Center for Black Entrepreneurship and the PNC Bank Center for Entrepreneurship. [1] Consumer Financial Protection Bureau, Expanding access to credit.

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