lizruddick

Are you using TRIAD to its full potential?

Blog Post created by lizruddick Advocate on Jan 19, 2018

TRIAD helps clients see 25% to 30% gains in revenue, 15-25% reductions in bad debt and customer loyalty surge (get more details in this product sheet). Although TRIAD has proven its value for over 20 years, TRIAD users who don't utilize the system's advanced capabilities are losing out on huge profits. To identify exactly how much is left on the table, FICO regularly analyzes it's most active TRIAD users to see how they are performing compared to more passive users. I conducted our most recent active versus passive user research in 2017, analyzing 20 financial institutions' portfolio performance.

 

What’s an active user?

An active user is defined as using seven or more features listed below. Clients using fewer than seven features or older product versions are considered passive.

 

chart 1.png

How much more profitable are active users than passive users?

To understand the difference in portfolio performance between groups we looked at metrics such as profit per active account, average value of debit activity, average sales, average credit limit and percent of accounts using limit. All clients have the same risk management tools at their disposal but the active users saw incremental changes that turned into massive benefits. For example, a 3% increase in the percent of accounts with a balance and an average interest income of $.76. With a 500,000 portfolio size, that means $6.24 million in more interest income over a 12 month period than the passive users.

 

chart 2.png

 

What's keeping you from becoming an active user?

We understand there are roadblocks to creating and updating strategies. TRIAD resources may be limited at your organization and the process to get new strategies implemented can be long, but we're available to help you make your business case and plan your roadmap to active usage. View all of the results from my newest research in this white paper: Active usage of FICO® TRIAD® Customer Manager can Yield Millions in Incremental Profits, to understand the most profitable and highest priority features and decision areas that your organization should focus on. Lastly, don't hesitate to reach out to your Strategy Consultant to prioritize goals for your hours allocation this year.

 

Already know if you're active or passive? Share your story or ask questions here on the community.

Outcomes