Posted by Madhavan Sriram
This is what I am working on currently from the Consumer financing end.. Well, retailers and consumer finance companies that deal with retailers look mostly at the same variable – Sales. We want to increase sales and so do the retailers. We want it to be done through revolving credit and they don’t care how ! That kind of makes us partners. We come up with all those intuitive and wonderful offers and discounts that you have seen popping up in your account screens and make you purchase. You get a neat discount, we increase our sales and retailers improve their bottom line !
Its a win-win for retailers, consumer credit card companies and you, the consumer – We all gain through this??
Yeahh.. thats true in a way but false in a lot of ways. We give you flexibility but we also read your mind through your actions. We are the calm types that just capitalize on your folly. Some would disagree at this point saying that they have a higher working capital and a greater flexibility in wielding their finances – You are right ! People such as Warren Buffet have capitalized on the word “Credit” and made a fortune out of it. Well, not everyone is a Warren Buffet and most of them lose the money. On the contrary, a successful figure such as Warren Buffet may just as well rope in millions of simpletons into the system – “Category Membership” as it is called 😛 .So, we gain nothing through your happiness and you we just wait till you made a transaction you cannot repay and then fine you heavily for that -55% of our earnings are through lending activities (You read it right)..
Why Big Data Analytics ??
You would wonder what big data analytics has to do with any of this. There is a lot – trust me on that .. With your data, we read your actions and map you to people who behave like you. We have a fancy word for that – “Segmentation”. We target your mini-group (target population) with offers that you like and make you buy a little more than what you typically do. We run such customized campaigns throughout the year for all target populations and keep you engaged with our brand, and make you keep purchasing from us. Both me and you are happy in this transaction. Every customer spends a little extra from his pocket through this credit line that we extend and that adds to our bottom line and so as to the retailers. Also, we see how you respond in “Blogs” and “social media forums” (I may be tracked here :P) and give you what you like .. Big Data Analytics does seem Big indeed.
Well, thats what I am working on this summer. Hope you found my candid view interesting 🙂
Tags: Alternative financial services, Big data, Big Data Analytics, Candid, Consumer, Consumer Finance, Credit, Credit Card Industry, customer engagement, customer retention, Finance, IMT Ghaziabad, Internship, Marketing, Penetration, Retail Analytics, Revolving credit, Sales, SEgmentation, Social Media, Targeting, Warren Buffett