Gaining, retaining, and ingraining the credit customer in the 90s

Article Abstract:

Credit grantors need to rethink their marketing strategies in view of the increasing sophistication and credit savvy of customers. There are several available credit programs that may be impelemented to generate new accounts, rouse inactive ones and foster loyalty among credit customers. Direct mail and credit courtesy programs, when developed according to the needs of the credit grantor, can work effectively in soliciting accounts. To stimulate dormant accounts, credit professionals can implement activation and reactivation programs which entail re-establishing contact with customers. Credit grantors may find it beneficial to hire a credit promotion consulting firm to help them in their efforts to gain, retain and ingrain customers. These consulting companies should be selected on the basis of their experience, credentials, involvement, approach to program analysis and coordination of the promotion programs.

Marketing, Credit

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Telecommunications: benchmarking proven practices

Article Abstract:

The telecommunication industry is facing high rates of customer turnover, high costs of attracting desirable customers and growth in unpaid bills as a result of intensifying competition brought on by deregulation. Many telecom companies are responding to these problems by using tools traditionally employed by banks and other financing companies. They are trying to control customer turnover, known as voluntary churn, by submitting customer information to credit bureaus to be able to identify credit-conscientious customers. Another bank practice adopted by telecom companies is cross-selling and upselling of products, which involve the use of marketing characteristics and products from credit bureaus to determine which customers to upgrade and which services to offer them. Telecom firms are also beginning to practice account management which is common in the financial industry.

COMMUNICATION, Communications, Broadcasting and Telecommunications, Telecommunications services industry, Telecommunications industry

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Boosting profits through customer segmentation

Article Abstract:

Customer segmentation strategies are effective for maintaining profitability in the credit industry. Price discrimination is one form of segmentation. This enables creditors to identify how much customers in a particular segment are willing to pay and use different pricing strategies accordingly. A large portion of customers willing to pay high prices would result in greater profits. Another strategy is operational segementation. This involves using different strategies for each phase of the credit life cycle depending on the customer's credit risks, for the efficient allocation of resources that reduce cost and at the same time increase customer service. Utilizing the most efficient integrated systems and data sources available is also essential. Finally, performance should be monitored together with detailedindependent or integrated account performance reports.

Short-term business credit, Market segmentation, Commercial credit

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