Research published today shows that 65% of British adults have experienced some form of sudden change in their finances during the last two years, and 38% did nothing at all when first hit financially.
The study – commissioned by Callcredit Information Group (CIG) – reveals that during one of the worst recessions of all time, 69% of people under financial pressure never spoke to their bank or building society about their problems, and a quarter did not cut back on spending immediately.
Not only this, but 42% of Britons admit to not coming clean about their financial situation when they run into problems, and half of people in financial trouble turned to family and friends first – with 11% asking them for a loan.
In today’s uncertain market, with rising consumer debt and bankruptcies, retail spend is often wasted on consumers who are not in a position to make a purchase or qualify for the product or service on offer – even if spending habits may look normal.
CIG believes that the results are particularly important for retailers, who need to be aware of customers’ financial situations, so they can target them with more appropriate offers and services.
By conducting credit pre-screening and scoring, retailers can save money on marketing and application costs for consumers who otherwise wouldn’t be accepted for credit, helping improve conversion rates and reduce mailing costs.
Not only this, but it also helps protect brand reputation by not inviting customers to apply, only to reject them at decision stage.
Callcredit has a UK wide consumer database of credit performance and bad-debt information, and can also predict future credit risk and financial stress amongst customers and prospects – such as those reaching their credit limits.
Source: Callcredit
