What is the credit maturity of your store network?

[jisansorkar8990]

It’s always better to “show” than to “tell.” Stop talking and prove what you can do.

I read this phrase in the book Hyper Growth , by digital strategy wizard Aaron Ross, and I started thinking about how this makes sense for the content I write here on the blog.

A few days ago we were prospecting a chain with 28 stores in Rio de Janeiro that wanted to learn about our own credit management system .

Since it is a larger account, I thought it would be interesting to “show” rather than “tell”.

I invited the owner of another chain of stores to participate in the conversation, with very similar characteristics, who had obtained excellent results with Meu Crediário and was an enthusiast of our platform.

I was sure he could contribute with his own experience, showing our prospect a practical view of the benefits we offer to the retailer.

And it didn't take long for that to happen!
After 15 minutes of conversation came the first sample of what I believe to be one of the greatest values ​​of our service for this network:

“Before, 80% of our meeting time was spent discussing defaults. We overseas chinese in australia data simply couldn’t include discussions on collection renewal, sales strategy and marketing on the agenda. In other words, what really generates value for the company was practically not discussed.”

As he spoke, I noticed that the shopkeeper from Rio de Janeiro was immediately identifying with that situation.

I have always been convinced that the credit engine , contrary to what is widely disseminated in the market, does not simply serve to control default.

In fact, controlling default is the side effect of a more comprehensive strategy, which involves generating value and – mainly – sales growth!

But it's one thing for me to talk about what I believe.

Another thing is to prove what I say by showing results from companies that have already reached what we call “credit maturity”.

What do I mean by this?

What is credit maturity?
Many retailers to whom I introduce Meu Crediário believe that there is only one way to evaluate the benefit of our system for their credit operation:

“My default is X. If I use Meu Crediário, I save Y”.

Well, I can say that this account closes by itself in practically all the networks we work with.

However, if this is the only calculation you make to evaluate the performance of a credit management system, its maturity for credit operations needs to be expanded.

Additionally, I will highlight some factors that indicate low credit maturity in retail companies.

Check the list and see if you can identify similar situations in your operation.

Five examples of low maturity in credit
Increase the average ticket for the credit portfolio without taking into account the risk of default of each customer.
Relying on people to make credit decisions.
Believing that a traditional (old) customer is always a good customer.
Increase limits based on customer income or number of installments paid.
Celebrating a super low default rate without realizing that this can be very restrictive for sales.
All of these points make it difficult for the company to grow and break important paradigms.

For example, have you ever wondered how long it takes to open a credit account in your store? Is this time appropriate? Is the customer satisfied?

Using our system, you can approve most sales practically instantly, as if the customer were swiping a credit card.

Do you see how having a good credit analysis platform can take you beyond simply controlling defaults?

This is having credit maturity!

Do you think your store has arrived there yet?

So, see below some attitudes that characterize a truly mature credit operation.