The interest-based credit approach

On April 26, 2010, in making money, money advice, money issues, money management, money problems, by admin
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I’ve worked with many organizations to implement what I call interest-based problem solving. One such client was the Waldorf Corporation, headquartered in St. Paul, Minnesota. This company makes packaging for huge corporate clients, from Land O’Lakes to Legos, from 3M to Hormel. They recycle paper products and work with governments around the globe in wastepaper recycling efforts.

Dedicated to forging partnerships with clients the world over, management has also formed partnerships with four unions in an effort to foster win-win relationships. Their interest-based activities have focused on prioritizing and then finding ways to satisfy the interests of each side.

The interest-based approach was used with the Dairyland Power Cooperative in Wisconsin in 1995 to negotiate agreements between unions and the company management. In this case the goal was to transform the mission statement originally approved by the labor/management committee in 1992 into a reality. Essentially both sides were bound by an agreement to use “interest-based bargaining/ consensus” guidelines to resolve grievances, make decisions, and find the best solutions.

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Using the internet for credit decision-making

On October 26, 2009, in crisis, debt, economy, money advice, money issues, money management, payday loans, personal finances, by admin
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There are many ways to develop new products or boost the profitability of existing ones using the internet. The principles for online innovation are, with several additions, similar to those for offline product development.

The internet and customer-focused decisions

One of the most significant business benefits of the internet is the ability to create new relationships with customers. This includes the ability to capture, store and disseminate detailed information about customers and their preferences, thus allowing swift and practical decisions on everything from new product development and pricing to stock levels and future marketing plans. It enables faster, more reliable transactions, improving efficiency and reducing costs.

The internet also enables different scenarios to be tested, thus enhancing the accuracy of decisions. Another advantage is the ability to provide special-offer promotions offering significant value. As well as facilitating the promotion, the internet also enables customer data to be analysed and used to inform future decisions.

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Using customer credit data

On October 23, 2009, in bonds, business, business advice, business tips, personal finances, revenue, stock, stock exchange, by admin
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The value of detailed market and customer information is enormous. Common uses of customer data include the following:

Tracking purchasing habits. This can show how frequently customers buy, how much they spend, how they choose to make their purchases and, perhaps most importantly, what they are choosing to buy. Information about buying preferences enables organisations to start building genuine, practical relationships with their customers, increasing the likelihood of repeat business.

It also allows them to target products at the customers most likely to buy them.

Enhancing special offers. Analysis of special-offer promotions may reveal that the organisation does not need to discount prices. This in turn can remove the “wasted” margin that may occur when the price of a product is reduced to attract people that would be prepared to buy it at the higher price. Analysis may show that the people that would value the product are the ones hearing about it.

Maximising sales opportunities, leading to repeat business and increased revenue at marginal cost. Linked with the previous benefit is the ability to increase customer response rates through improved targeting. This occurs when a current or potential buyer of one product is targeted with another complementary one. So, for example, if a customer is viewing cars online, an advertisement for a financing package may appear.

Developing new sources of revenue. Detailed customer data may highlight new, unknown or previously difficult to exploit business opportunities. For example, an online travel agency may have previously avoided selling ancillary products, from insurance to sun-cream, but given the potential new scale of their business and the ability to sell ever more effectively to a wider range of people, new product offerings may prove worthwhile.

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