GoEasy: Store Operations
Former SVP - EasyFinancial Retail Operations
inpractise.com/articles/goeasy-store-operations
Former SVP - EasyFinancial Retail Operations
Interview Transcript
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If we compare a cohort that conducted all transactions without visiting the store, with their loans reviewed and approved by the central loan team, to a cohort that visited the store, how would the two metrics of charge-off and lifetime value differ?
The differences balance out overall, but the lifetime value is likely to be about $500 to $600 more per client. However, I don't want to delve too deeply into this as the product mix has changed and this information is four years old. The delinquency rate was probably 15% to 20% less.
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What happens in the store that leads to a higher lifetime value and, more importantly, lower charge-off rates? After all, the customer doesn't live in the store. What happens during their visit that makes them less likely to default on their loan?
I can tell you that our lowest delinquency and loss rates were on the East Coast, which has the smallest population in Canada. The reason is that they would see their clients in their communities. Even though all the information was confidential, there was a connection. We trained our teams to establish a personal connection. It wasn't a cold transaction, but a warm connection. Our clients need this kind of connection. They need to know they're not failures, they're not doing something wrong. They need to know that there's a connection.
This is a snippet of the transcript, sign up to read more.
What happens in the store that leads to a higher lifetime value and, more importantly, lower charge-off rates? After all, the customer doesn't live in the store. What happens during their visit that makes them less likely to default on their loan?
Remember, they're coming to you because a life event has happened. They're borrowing money because they need help, and that creates a human connection. I know it's hard to quantify that, but I could see it clearly in the data.
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