Experian released a residential utility usage tool which reveals specific consumer usage trends, particularly for telecommunications, energy and cable industries. Experian, headquartered in Orange, Calif., and Nottingham, UK, is a supplier of consumer and business credit information, credit scoring and software solutions, and direct marketing services.
Its new product, HomeScores, was created with market research firm PNR and Associates. The solution provides marketers with an “x-ray” of the customer`s whole lifecycle, including demographics, lifestyle and behavioral characteristics. It combines advanced usage modeling tools, analysis software, and Experian`s consumer database to create a specialized and targeted database of consumers most likely to respond to specific promotions.
A major energy company recently utilized the technology to target new customers for an out-of-territory customer acquisition campaign. The company wanted to enter a deregulated natural gas market in Georgia and achieve profitable customer acquisition. Using residential utility usage tool, it prospected the top 15-20 percent of homeowners most likely to switch utility or energy providers.
The company`s marketers used the tool to segment the population into “Switching Intent Clusters,” consumer groups divided into probabilities of switching based on zero, five, 10 or 20 percent discounts. The marketers tailored the message depending on each cluster`s likely propensity to perform. The acquisition mailings resulted in a response rate of approximately 10 percent-almost four times what would normally be expected, with a conversion rate difference that translated into an estimated $3 million in increased revenue.