STORES Magazine - May 2009 - (Page 36)

WORTH WATCHING / CREDIT Credit Where Credit’s Due Zoot provides instant screening capabilities in all retail channels sales as the result of the offers, he says. In some cases, customers will purchase more knowing they have an additional line of credit. Regardless, being able to offer instant credit provides retailers with a competitive advantage. Click for credit Some retailers use the service only at BY LAURI GIESEN their call centers; others utilize it on ecommerce sites, as well. In the latter hat if you could of fer instant credit to a customer as she is placcase, the retailer can perform an instant ing an order? You’d already know if she meets your credit stancredit check as soon as the initial order dards and how much she should be approved for – and she likepage is sent. When it’s time to complete ly would increase the size of her order in the process. the payment page, the retailer can ask the customer if she That’s part of the servwants to use the retailice Bozeman,’s proprietary credit based Zoot provides to card or another line of retailers like Cabela’s. credit. The customer The two companies’ rewouldn’t have to fill out lationship began 10 an application; she years ago during the decould merely click to acvelopment of a solution cept the offer. to pre-screen customers “Few retailers can give for credit via the telereal-time credit,” Linphone channel. deen says. “By using the Cabela’s then began pre-screening program, using the Zoot service to customers could put provide credit offers their purchases right on through the e-commerce the credit card without and store channels. As a taking additional steps. result of using this servAnd retailers could only ice, Cabela’s financial make the offer to those subsidiary, World’s who are pre-approved, Foremost Bank, douso there is no risk of probled its credit card appli- Most retailers using Zoot see acceptance rates of 5 to 20% moting a credit card to a cations without any corcustomer and then not responding increase in staffing. evaluation between the pages of their approving the application.” “Zoot’s decisioning and loan-originascript. If a customer passes, they can Most retailers using Zoot see accepttion solutions have helped us achieve make an immediate offer.” ance rates of 5 to 20 percent, Lindeen significant efficiencies internally, while Zoot passes along the name and address says. Retailers that offer credit applicamanaging risk effectively,” says Joe of the customer to the credit bureaus, tions without pre-approval typically see Friebe, CEO of World’s Foremost Bank. which provide an instant credit score. only about 1 percent of customers apply. Zoot is able to evaluate a customer’s Using the credit standards set by the retailZoot also provides a hosted credit apcreditworthiness without the customer’s er, Zoot can determine whether to approval system that can be integrated into permission as a transaction is being iniprove a credit account, and at what limit. call center scripts and e-commerce shoptiated; all it requires is the customer’s Some retailers start with a low credit limit ping carts. StORES name and address. “A credit offer can be and increase it as they get to know the cusmade within the context of the call so tomer better, Lindeen says, while others Lauri Giesen is a Libertyville, Ill.that it appears seamless,” says Eric Linwill start out with the full amount they bebased business writer with extensive deen, marketing director for Zoot. lieve the customer is capable of paying off. experience in covering payment and “Most retailers can have us do a credit Retailers can get significant lifts in finance issues. W 36 STORES / MAY 2009 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - May 2009

STORES Magazine - May 2009
Executive Editor's Page
President's Page
Facts to Chew On
What Shoppers Think
Deals "R" Us
10 Things You May Have Missed
Numbers Worth Counting
Full Price/Markdown
Retail People
Cover Story: Brand X Power
Home Improvement
Credit Where Credit's Due
Locate, Locate, Locate
New Playbook
Staying in the Fast Lane
Clean and Green
Driven to Please
Farm System
Rx for Shrink
Zeroing Out Zombies
Rogues Gallery
Ounce of Prevention
Loeb Retail Letter
Chain Action
Optimism Rocks
ARTS Update
Point of View
Retail Crossword
Retail Industry Calendar
End Cap

STORES Magazine - May 2009