Retailers can generate up to R$ 200 million in revenue from the management of their own customer portfolio, according to Serasa Experian

An unprecedented study conducted by Serasa Experian, the first and largest datatech in Brazil, showed that it is possible for retailers to safely expand, through intelligent management and periodic analysis of the portfolio, their credit offer in up to R$ 200 million for customers of their base who have credit card. The study was conducted from a customized analysis of the portfolio of four retail players, combining exclusive and market data with the analytical intelligence of Serasa Experian.

In financial terms, the study showed that the card limits of the clients of the analyzed portfolios have the potential to grow 60%, an expansion of the credit offer that equals R$ 200 million.

“Understanding the profile, the purchasing potential and the risk of each client is fundamental for a customized portfolio management and a readjustment of the credit card limit for each CPF. This allows a more accurate risk assessment dividing the clients into three groups: those who need to have the reduced limit, as they present risk of default, those who may have increased credit, as it has potential for purchase with low risk, and those who are with the appropriate limit. With this, it is possible to increase revenue by working with clients who are already inside the house ¡ ̄ which is much cheaper, less complex and more attractive than going in search of new clients in the market.

The study also identified the portion of the customer base with limits that bring potential default risks. For this group, the analysis suggests a reduction of 25% of the limit, which would reduce the total concession of R$ 235 million to R$ 175 million, with a total reduction of R$ 60 million.

Types of cards in retail

The segment usually offers two types of credit cards: bandeirados and private label. The first modality is a conventional credit card, accepted in all establishments that operate with the issuing flag and issued, usually, through a partnership between the store and the flag. The private label is a model that can be used only in the stores of the issuing retailer. And for both the periodic risk management of the portfolio is not only applicable, but also recommended.

For the first group of flagged cards, the data show that it is possible to increase credit in 63%, going from R$ 179 million to R$ 292 million, an increase of R$ 113 million. The same reasoning is presented for the risk of default. For this group, the reduction of the limits would be in about 25%, the equivalent to R$ 16 million. Thus, the new limit granted would fall from R$ 65 million to R$ 49 million, approximately.

For retailers selling the private label card, the increase in value would be R$ 73 million, or 46%, raising the limits of R$ 159 million to R$ 232 million. Among customers at risk of default, the reduction of the limits would be 25%, or R$ 43 million, taking the total of R$ 170 million to R$ 126 million.

“Defining a robust policy not only in the concession, but also in the maintenance of credit, applied to the portfolio profile and based on the union of the customer's history with the store, with market data on that CPF, is one of the most important points in the journey of companies that offer cards. This is even more crucial for retail, since the history and financial behavior of consumers is not centralized with them. Our goal is to support our customers with analytical intelligence and end-to-end automation of the analysis processes to reduce their risks, expand their opportunities and bring agility and efficiency to business decisions. And, it is still possible, for example, to carry out personalized offers for new sales and cross-finished customers.

Methodology

The figures are the result of a study based on results obtained with the integrated Customer Management solution using as a starting point cases of four companies in the retail sector adepts of the solution.

The analysis is made through a strategic and individualized evaluation of the provided base, joining exclusive and market data with the capacity of analytical intelligence, enabling to print a broad view of the potential of its customers by CPF and/or CNPJ. In the solution it is possible to identify the public with the greatest potential for eligibility to credit products, both in the view of risk and propensity, and a limit value is indicated according to the financial behavior of the customer in the market. Other segments such as banks and insurers, for example, are also adepts of the Customer Management solution.