Many times businesses focus on customer accounts from an operational standpoint. They review their portfolios relative to the processes of origination, credit management, and collections. And so much emphasis goes into the operational side of the business that analysis of their portfolios for profitability to particular types of customers are often overlooked.
Here are a few things you may want to evaluate:
- Review your risk scores by industry. This will help you identify which areas tend to be high risk vs. low risk.
- Take a look at your balance amounts within specific segments to determine the amount each industry is spending with you.
- Analyze your portfolio by currency and delinquency. Can you identify any specific trends in how that industry pays you?
By performing this high level analysis on your company’s accounts, you’ll be able to get some ideas for a more target approach in acquiring accounts, preferably with the least amount of risk and expense, and the highest returns.
Look for future posts from me, and let me know if there are any specific topics about managing your portfolio that you’d like to see.