A BETTER KNOWLEDGE OF THE CUSTOMER ENVIRONMENT TO CREATE VALUE
Many leasing and asset finance market players share the same view. A better knowledge of their customers and a close oversight of the products marketed contribute to the growth of this industry and must be placed at the heart of each market players’ business strategy.
Therefore, any initiative designed to enhance growth must include:
- An analysis of the most efficient segments by an overall and detailed control of all of the activity’s parameters, from customer knowledge to online sales channels or physical sales points as well as to the products sold.
- The best possible customer risk management
- Value creation by improving the quality of service
Know and understand your environment
Every market player must acquire an internal management tool which makes it possible to respond to major issues such as the profitability of its products, his clientele’s structure and its key accounts. Thanks to this advanced analysis of the ROE, non-profitable products can be removed from the product range and the products adapted to each customer segment can be defined, becoming an important source of future customer loyalty.
Manage the customer risk
As a counterpart of this loyalty strategy, the customer default risk might be increased. It is therefore necessary to have a comprehensive view of the customer’s environment. From an operational point of view, it is important to evolve and move from a “contract” management to a “customer” management by ensuring the best possible risk management.
The improvement of the quality of service is a key factor which makes the difference in a highly competitive environment such as the leasing and asset finance sector. For this reason, each market player must innovate and create value without reducing its current operating margins.
Three approaches exist on the market:
- The “Risk-based tariff”: on the basis of a detailed segmentation of the portfolio, it is possible to maintain the margin by lowering the customer’s interest rate
- The increase in the margin by providing value-added complementary services
- Cross-selling: the possibility to analyse and estimate the consumers’ needs for new financial products or services makes it possible to optimise marketing campaigns and to promote additional sales.
Linedata’s offer at the heart of the business strategy
Linedata supports real estate financing players with the Linedata Ekip 360 software package and its Distribution and Management systems.
Thanks to the exceptional range of offers, you can offer your clients financing solutions adapted to their needs, including asset finance, financial lease, full service rental, fleet management and services contracts.