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Achieving a 15% improvement in bad debt |
About Express Gifts
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. Challenge
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.
Solution
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.”
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