In the Ask the Experts Q&A series, we answer your top questions about portfolio management, customer acquisition, and more.
Q: Hi Experian. One of our main goals for the year is to expand our portfolio into new geographic territories. Being risk adverse, I want to ensure we make informed and educated decisions to alleviate as much uncertainty as possible. How might we test out or gauge our growth opportunities in new regions before we actually jump in?
A: Thanks for your question! Growing and expanding into new territories is a popular area we help businesses to better understand and prepare for. And it’s a great situation to use the Experian Analytical Sandbox (or perform data modeling, in general) to help answer.
First, understanding the risks and opportunities associated within your potential new markets is critical. This means taking a microscope to that market and analyzing the businesses within it. Leveraging business firmographic data found in the Analytical Sandbox, you can view data elements such as availability of businesses by size, revenue and other risk factors. You can also filter and segment the data for different perspectives to further help you get a more complete picture.
Next, once you’ve identified and analyzed the potential markets, develop a look-alike model to determine how many businesses that are similar to your current portfolio exist within the new markets. This will give you a clear indication of your likelihood to replicate the success of your current portfolio within the new target market.
Finally, with loaded marketing response data from your existing campaigns or outreach, you will be able to determine the likely response, approval, and booked numbers to calculate the cost per acquisition, and help you get started.
Using this methodology to model and project your growth opportunities will enable you take a data-driven approach to best penetrate new markets.
Want to learn more about how Experian can help you optimize your growth, contact us today.