TransUnion to Manage CompuCredit's Direct Marketing Efforts; Bundled services deal reduces acquisition costs and risk
CHICAGO--(BUSINESS WIRE)--March 8, 2006--TransUnion and CompuCredit (NASDAQ:CCRT) have agreed to an arrangement in which TransUnion will manage a portion of CompuCredit's direct marketing efforts to select consumers. Called TransUnion Acquisition Services, this offering leverages TransUnion's data, process management and decisioning to select targeted consumers for a given direct marketing campaign.
The advantages for customers using TransUnion Acquisition Services are that it represents a true end-to-end marketing service and greatly reduces the costs of attracting and keeping new accounts. "This is truly a value-added service for our company," said Rich House, president of CompuCredit. "As we remain focused on marketing financial products and services to consumers who are underserved by traditional financial institutions, we must leverage opportunities to outsource functional activities such as this to a proven vendor. This gives our staff more time to serve our customer's needs and reduces the in-house infrastructure necessary to manage the communications and sales processes."
Once prospective consumers are identified, TransUnion facilitates the initial contact via phone or mail and completes the marketing lifecycle by managing consumer response. If the customer elects, fee-based services are offered and the profits from these sales are shared with the customer, significantly reducing their overall cost of acquisition. Customers are not charged for TransUnion's decisioning and management services until an offer is accepted and approved. In addition, from a risk management perspective, it is TransUnion and not the customer that absorbs the risk of unplanned fee-based service cancellation by a consumer.
"With TransUnion Acquisition Services, we have greatly reduced the risk to our customers in attracting and keeping new business," said Kevin Scollard, vice president, TransUnion's Analytics Decision Services group. "This is a win-win for CompuCredit and TransUnion. It showcases the benefits of how a successful and integrated direct marketing solution should work and allows CompuCredit to strengthen and grow its marketshare with little or no cost risk."
CompuCredit was recently recognized by Fortune as the number two company on the magazine's "Fast 100" list. This partnership between TransUnion and CompuCredit further strengthens the relationship both companies have enjoyed since 1996.
TransUnion is a leading global information solutions company that customers trust as a business intelligence partner and commerce facilitator. TransUnion offers a broad range of financial services that enable customers to manage risk and capitalize on market opportunities. The company uses advanced technology coupled with extensive analytical capabilities to combat fraud and facilitate credit transactions between businesses and consumers across multiple markets. Founded in 1968, Chicago-based TransUnion employs 4,100 associates that support clients in more than 30 countries. Visit us at TransUnion.com.
CompuCredit is a specialty finance company and marketer of branded credit cards and related financial services. CompuCredit provides these services to consumers who are underserved by traditional financial institutions. Credit cards marketed by CompuCredit generally are issued by Columbus Bank and Trust Company under an agreement with CompuCredit. Through corporate and affinity contributions focused on the underserved and un-banked communities, CompuCredit also uses its financial resources and volunteer efforts to address the numerous challenges affecting its customers. For more information about CompuCredit, visit www.CompuCredit.com.
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