Enabling The Very Group to get closer to their customers, improve decisioning and take action sooner - CASE STUDY
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CASE STUDY
Enabling The Very Group
to get closer to their
customers, improve
decisioning and take
action sooner
Confidential | Internal use only
CASE STUDY: THE VERY GROUP
Their purpose is ‘to make good
things easily accessible to Access to
more people’by providing the latest brands
customers with:
and products
The Very Group is the UK’s largest digital retailer and Easy, enjoyable
financial provider, with annual sales of £2 billion and and personalised
more than 1.9 million website visits every day. Revolving credit
shopping
so customers can
experiences
Its brands are Very.co.uk, Littlewoods.com and spread the cost of their
LittlewoodsIreland.ie. purchases in unique
ways with convenient
The company sells more than 1,900 famous brands, terms and affordable
has 4 million customers and delivers 49 million repayments
products every year.
© 2021 TransUnion International UK Ltd All Rights Reserved | 2
CASE STUDY: THE VERY GROUP
The Challenge Their three core areas
of focus were:
Always striving to deliver superior
Deepen their understanding of their
customer service, The Very Group sought
customers’ behaviours and changing
to enhance their responsible lending circumstances within their brands —
practices. Their aim was to ultimately as well as in a wider financial context
further improve their customer outcomes, Continue to improve customer
reduce revenue losses and minimise the outcomes
number of customers falling into difficulty. Prevent their customers from falling
into bad debt
They approached TransUnion to
help them achieve their goals.
© 2021 TransUnion International UK Ltd All Rights Reserved | 3CASE STUDY: THE VERY GROUP
TransUnion’s Approach
At TransUnion, we understand THE APPROACH WE TOOK WITH THE VERY GROUP:
every client has unique To gain an in-depth view of The Very Group’s customers we ran
challenges. We work the CallMonitor solution retrospectively over a 12-month* period.
collaboratively at every stage to This provided a broader understanding of what behaviours customers
exhibited during the time frame and highlighted patterns that could be
create tailored applications of our used to predict how they would act in the future.
solutions — ensuring the best
possible outcomes are generated Analysed customers at both extremes of the customer journey:
to address these challenges. customers who defaulted on repayments and model customers who
continuously made payments.
Utilised CallMonitor’s scoring abilities to predict which customers
were likely to fall into difficulty and what behaviour they exhibited
beforehand.
Deployed an additional score, Cure Score, to identify customers in
arrears who were capable of rehabilitation.
© 2021 TransUnion International UK Ltd All Rights Reserved | 4CASE STUDY: THE VERY GROUP
Choose the right
CallMonitor: action for your
Why and how it works customers
Cure and Delinquency
Scores tell you whether an
account will be in a better or
worse position in three
months’ time.
Make smarter,
more responsible
lending decisions.
CallMonitor, via daily alerts,
gives you up-to-the-minute
information on your customers'
ability to pay. Take action
sooner.
CallMonitor provides
alerts up to six weeks
in advance of
traditional bureau calls.
Confidential | Internal use only © 2021 TransUnion International UK Ltd All Rights Reserved | 5CASE STUDY: THE VERY GROUP
FINDINGS:
CallMonitor retrospective analysis
Almost 50% of all The Very Group’s Customers triggering severe alerts, Interestingly, it revealed some
customers had an alert associated with such as insolvency, were linked to customers flagged as increasing credit
them, revealing they had being engaging higher bad rates. utilisation and shifting their credit
in significant credit activity, and/or had balances between providers were more
experienced a change in circumstances likely to fall into arrears then the rest of
within the 12-month period. the customer base.
This insight provided The Very Group This suggested customers Taking action to reduce customer
with a deeper understanding of their with these alerts needed lending limits when these behaviours
customers’ behaviours which they quick action to prevent them are present reduces the risk of them
could utilise in their customer from falling into further borrowing above their means, and
management strategies — from financial difficulty. allows them to manage current
credit limit reductions and account financial commitments without taking
freezing to next best action contact out further credit and adding to
strategies. the problem.
© 2021 TransUnion International UK Ltd All Rights Reserved | 6CASE STUDY:
Findings:
Predelinquency Scoring analysis
Early detection and The score is typically used Where customers displayed a high
real-time action 1 across high-volume, mild alerts 2 increase in their Predelinquency
to identify the best signals in the score, a significant number of
prevents customers customers then showed a pattern of
data. Against a portfolio, the
falling deeper into debt Delinquency Score was highly taking out further credit in the next
and generates profit. discriminatory and identified low- couple of months, suggesting credit
volume segments with higher was taken when the customer was
bad rates. already starting to show signs of
CallMonitor’s Predelinquency financial difficulty.
Score flags those customers
who are showing credit
behaviours likely to result in By using the Predelinquency score alone, as part of an exposure management
default in the near future. strategy, you could prevent customers from having further financial problems by
protecting them from unaffordable debt, and the business from financial loss.
© 2021 TransUnion International UK Ltd All Rights Reserved | 7CASE STUDY:
Findings:
Cure Score and collections strategies
CallMonitor Alerts and Cure Score can improve your collections performance and
help you focus on those customers who will get back on track. Cure Score gives
Collections and Recovery teams the insight they need to help them prioritise their
efforts for the best returns.
We found a number of positive alerts linked The Cure score deployed using Combining the Cure Score with
to higher cure rates on a collections and positive triggers proved highly the collections process allows
recovery base. Customers who were predictive for account curing. you to segment your debt book
opening new accounts with other providers The top 20% of customers had in a highly efficient and strategic
and displayed balance changes in their a cure rate of over 50%; the top way, optimising both internal
credit file were 1.5 times more likely to get 10% curing over 70%. resources and liquidation rates.
back on track than other customers.
© 2021 TransUnion International UK Ltd All Rights Reserved | 8CASE STUDY: THE VERY GROUP
Outcome
Analysis of the proof of concept
provided The Very Group with the
confidence to implement CallMonitor “Working in partnership with
across their entire customer base. This TransUnion helped us strengthen
existing management strategies for
enabled them to gain deeper insight into
the 50% of customers who have
their customers’ behaviours and take a experienced a change in their credit
proactive approach to customer profile over the 12-month period.”
management, improving their “Since implementing CallMonitor into
experience and advancing Very’s a live environment, the product has
been performing as the retro analysis
decisioning to help prevent bad debt. “As a customer-centric business
predicted and is set to generate a
good Return on Investment.” that puts innovation at the heart of
everything they do, we're proud to have
Mark Harrison-North,
Director of Credit Risk, worked with Very. We've deployed a
The Very Group
unique solution that enables them to
better understand their customers,
protect them from debt and
enhance their journey.”
Joe Bolser, Head of Product,
TransUnion
© 2021 TransUnion International UK Ltd All Rights Reserved | 9CASE STUDY: THE VERY GROUP
Final thoughts
CallMonitor is an alerts-based service that enables
brands to get closer to their customers.
In-built scoring makes behavioural patterns easy to
identify and combine with contact strategies.
Taking action proactively provides better customer and business outcomes.
TransUnion’s team of expert analysts work with individual businesses to
determine what signals and actions would be of the greatest benefit to
them, and then help to implement a strategy that delivers results.
Get in touch by calling 0113 868 2600 or visit:
transunion.co.uk/industry/retail
© 2021 TransUnion International UK Limited, registered in England and Wales with company number 3961870.
Registered office: One Park Lane, Leeds, West Yorkshire LS3 1EP. Authorised and regulated by the Financial Conduct AuthorityYou can also read
