Get in the MYX: Data Strategies for Direct Marketers

Credit Proxy vs. Prescreen Data: Rules for Auto Marketers - Part 2

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In Part 1 of this post, we provided you with an overview of the two different types of credit-related data available to automotive marketers...prescreen credit data and proxy credit data. As we mentioned, there is a time and a place for both types, but the trick is to understand the best way to leverage each one. In Part 2 of this post, we will focus on how credit proxy data (models that predict credit scores) should be leveraged to optimize direct marketing ROI.

Lead Prioritization
Whether leads are purchased or generated from an OEM or dealership website, credit proxy scores can greatly enhance marketing efficiency by providing auto marketers with a powerful tool for prioritizing both offline and online leads. A sound credit proxy model can ensure a dealer's sales team is laser-focused on leads that have the highest chance of converting, i.e., those who would actually qualify to purchase. It can also offer sales invaluable insights into the type of car they should be selling. For example, a consumer with subprime characteristics should probably be steered toward a lower-priced or used vehicle, where those with a highly probability of a high-prime FICO score should be offered more expensive models.

Tranzact Information Services offers you the unique ability to append credit proxy data in real time...enabling you to fully automate your lead qualification process.

List Segmentation and Scoring
A dealer's in-house customer list can also be segmented and scored to ensure maximum efficiency by appending a credit proxy score prior to the execution of any direct marketing campaign.

Features and Benefits of Credit Proxy Data
There are two main advantages to using credit proxy data over prescreen credit data:

• Cost savings: Credit proxy data is significantly cheaper (on a cost per thousand basis) than prescreen credit data. At only a few cents a record, proxy data may be the weapon of choice, if an 80% accuracy rate can provide you with a close enough assessment of a consumer's credit score.

• Fast, easy access: As a non-regulated data source, you can access this type of data immediately, without going through a paperwork process with either the credit bureaus or your legal department.

Now that you understand the value, best use and benefits of credit proxy data, it is important to note that not all credit proxy scores/models are created equal.  Leveraging our vast knowledge and experience with prescreen credit data, our analytics gurus developed a best-in-class credit proxy model that is based on summarized, actual credit data (vs. self-reported or self-estimated credit score data from surveys which is notoriously erroneous).

Interested in learning more about how to best leverage our credit proxy model? Call 800-488-9113 today to speak to one of our knowledgeable direct marketing professionals! Stay tuned for Part 3 of this post...which will focus on the best uses of prescreen credit data for automotive marketers.