©2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Using skip tracing to your advantage September, 2012 Utility Payment Conference Bill Butler, Collections Product Manager

3 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Industry challenges Active Accounts past due  Providing shut-off notices and settlement offers  Identifying landlords or co-habitants Outsourcing Accounts  Deciding which accounts to outsource  Deciding when to recall account from agency Inactive and Late Stage Accounts  Merging accounts  Tracking consumers

4 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Individuals move on average 11.7 times/lifespan About 42M Americans (14%) move each year Experian’s credit database shows that consumers are trending toward using wireless phones as primary phone versus landline There are over 4M births, 2M deaths, 2M marriages, and 1M divorces Socials inexact due to shared SSN, fraud & key entry errors not caught by algorithms Over 5% use “Jr.” and “Sr.” Dynamic nature of consumer information Consumer ID information is constantly changing Key for utilities is to identify providers that can pull together information from multiple data sources to identify consumers. Some sources include: directory assistance, credit and marketing databases, and alternative data such as rental and payday lending. Tracking consumers

5 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. The collections lifecycle EVALUATE Scrub your accounts for consumers in protected status. (Bankruptcy, deceased, military, etc.) PRIORITIZE Score your inactive accounts can help maximize resource use LOCATE Search for new skip tracing phone or address data to find consumers / businesses REVIEW Identify updated credit information and attributes MONITOR Monitor your accounts for financial changes and new phones and addresses Collections lifecycle

6 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Evaluating accounts for regulatory risk Key Goals  Find consumers in protected status  Identify consumers that meet requirements for special programs Options  Third party providers offer account filtering and data scrub services  Examples: EVALUATE Bankruptcy Cell Phone Type Deceased Fraud Litigious Debtor Military Experian’s clients have suggested a streamlined approach is best which includes multiple data filters

7 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Prioritizing accounts to maximize resource efficiency and improve collection activity Scores can be used for:  Segmenting and prioritizing portfolios  Determining appropriate treatment strategy for each account  Increasing collections and recoveries  Reducing costs associated with collections Helps in four key areas:  Service shut-off decision making  Final-bill collections  Assigning accounts to collection agencies  Internal Recovery collections PRIORITIZE

8 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Case study #1 using Experian’s Priority Score Charged-off accounts for large electric / gas utility Cumulative dollar capture by 10% increments Dollars Collected

9 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Case study #1 using Experian’s Priority Score Accounts 3-4 cycles past due for mid-size electric utility Cumulative dollar capture by 10% increments Dollars Collected

10 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Integrating scoring into your account flow Determine where scoring fits best: PrioritizationTreatmentOutsourcing Prioritization strategies can and should be used in tandem with skip tracing

11 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Applying scoring to your business Highest return with little effort NOTE: The score ranges are based on Experian’s Priority Score used for case studies A B C D Highest probability of payment High probability of payment Medium probability of payment Low probability of payment Less profitable Optimal area to place resources

12 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Find consumers, businesses, and co-habitants  Locate individuals and businesses  Find listed and unlisted phone numbers  Find wireless phone numbers  Identify co-inhabitants by premise  Update your consumer address and phone information  Determine change of address verification  Address standardization LOCATE

13 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Skip tracing data sources New and Unique Data Sources  Credit data ► High percentage of wireless numbers  Rental data  Payday lending data ► Underbanked consumers ► Consumers with no credit Traditional Data Sources  Directory Assistance / 411 phones  Wireless and alternative landline phones  Marketing sources

14 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Considerations for skip tracing 1) Data should be updated from legitimate sources 2) Quality is more important than quantity 3) Prioritization scores help with resource and placement optimization 4) Cell phone indicators are important with auto-dialers 5) Right party contact rates are influenced by the quality of the supplier

©2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Mining your data for dollars! Case studies using Experian’s PINpoint

16 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Importance of mining your own data  Link disparate customer databases  Cross-sell existing customers  Mitigate risk Business need  Identify linkage service or tools that enable you to view all relationships belonging to a single consumer Solutions  Drive profitability thru merging accounts tied to collections Impact

17 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Database 3 Lee, Margaret Address #1 SSN #1 Database 1 Peggy, Lee Address #1 SSN #2 Database 2 Smith, Margaret B. Address #3 SSN #1 How does an organization gather all data related to Peggy Smith? Database 4 Smith, Peg Address #2 SSN #1 Realities of disparate databases Consumer ID information can vary across databases Variations in data exist Previous address Current address Work address Parent’s address Correct SSN Mistyped SSN Nicknames Maiden names

18 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Checking and savings accounts Credit cards UtilitiesMortgages Personal loans Single Customer View A single customer view defined

19 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. What are the benefits of mining your own data?  Reduce outstanding collectable amounts ► Link outstanding closed balances to current, active accounts to enable “smart” balance transfer initiative  Enrich and update customer information (e.g., best name, best address, best Social Security number, deceased indicator) ► Critical to improving customer experience  Provide a critical single view of the customer base (an enhanced understanding of previous account history) and improved customer service ► Optimizes resources for maximum efficiency and for revenue growth

20 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Client case study Using PINpoint Services SM to mine your data Client Challenge and objective Solution: Experian’s PINpoint Services SM Results: $1.02 million in collected unpaid balances One of America’s leading energy companies with close to five million customers Accurately linking active and inactive accounts Identifying pre- existing relationships at the point of application $6.2 million in bad debt was missed in the matching process 2.7 million+ customer records sent to Experian PINpoint Services SM identified $1.7 million+ in uncollected, bad debt that could be linked to current, active customers $1.0 million (or 57% of bad-debt posted) was collected immediately Utilizing PINpoint Services SM to update its database of energy customers in additional states and will begin to link bad debt to active customers Going forward, plans to leverage PINpoint Services SM in improved identity validation, bad debt match at account initiation, and enrich its customer records with information

21 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Sample linkage analysis Patterns identify primary opportunity PatternActive Write off Balance Amount Active Balance amount (write-off) Number of total records Number of records (active) Number of records (write-off) Number of consumers PIN level 1 X $0.00 5,161,555 04,520,576 2X X$0.00$23,067, ,65671,215124,44144,067 3 X$0.00$242,631, , ,931 6,069,2565,232,770836,4864,942,574 Customer data integration report Active vs. write-off with balance amount $23,067,927 in write off balances identified as linked to active customers 44,067 customers identified with both write-off AND an active account

22 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Balance transfer segmentation strategy Total outstanding dollar amounts by segment Segment 1: $14,418,591 Segment 2: $1,587,776 Segment 3: $5,332,139 Segment 4: $1,782,410  X-tab provides insight on total balances by cell and quadrant  Cells map to total number of unique consumers  Ability to better target highest value segments  Helps forecast collection recovery results

23 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Balance transfer segmentation strategy PIN counts by dollar amount and time  X-tab provides insight on number of consumers by dollar amount and time frame in months or years  Allows you to prioritize highest opportunity transfers in addition to using scores  Ability to create separate transfer strategies based on all available data points Segment 1: 5,380 Segment 2: 8,025 Segment 3: 1,048 Segment 4: 1,386

24 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Experian Contacts Diana Csutak Utilities Consultant T: Bill Butler Product Marketing Manager T:

25 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public.