Synchrony Financial will alter its strategy to introduce more capabilities around data analytics, according to Keith Mait, the company’s vice president of powersports.
“On our list of priorities, towards the top, is showing our expertise outside of just powersports lending, and data analytics is very high on that list,” Mait told Powersports Finance.
“Synchrony, in its foundation, is the collector of millions upon millions of pieces of data,” he said, but in regard to powersports, data is limited. When a customer purchases a unit at a dealership, the invoice includes a breakdown of items like the manufacturer’s suggested retail price of the vehicle, and the cost of warranty or GAP insurance, he added.
“In effect, when it comes to Synchrony, we have the ability to drill into all of those areas and showcase [that data] when working in conjunction with our OEM partners,” such as the effectiveness of pricing, the elasticity of the promotion, or how effective the short-term promotion is versus the long-term promotion, he said.
“The sky is the limit,” Mait said, given that the data is collected through Synchrony’s online customer installment loan platform. This creates a wide spectrum where Synchrony can apply “a number of techniques to understand product-specific activity, such as geographic specifics, or how specific Fico bands are performing,” he added. “All of that we share with our customers as we try to create a more effective and cost-conscious promotional campaign.”
Stamford, Conn.-based Synchrony Financial makes loans for more than 1,000 dealers in 50 states.