According to a recent article by CMA partner Credit Today, a survey of the participants in Industry Credit Groups throughout the United States (including some CMA members) explained that their overall investment of under $2,000 per year in an industry credit group returns over $250,000 in cost savings (yes; you read that correctly). That’s an investment that is hard to pass up. This cost savings is up from the last survey, which was conducted in 2012.
For those who don’t know, Industry Credit Groups are simply a group of companies that share customers in a common industry who meet either in person or virtually to share factual credit information about their common customers.
According to the article, it can be a daunting task to try to make sense of all the data out there about your customers. Membership in a credit industry groups is so valuable because it provides a mechanism for socializing the data surrounding your customers, giving insights and context to it. The data socialization aspects, along with greater efficiency, make Industry Credit Group membership compelling, even for those that may only share a minimal number of customers with the other group members.
According to the survey, a very large majority (81%) of credit organizations are members of credit industry groups. Additionally, most groups (86 percent) do not share payment data outside their group.
As a whole, the total yearly cost associated with industry credit group membership is rising, although the cost of credit reports is falling, but despite these rising costs, industry credit groups are viewed as providing more value across the board than information from the credit reporting agencies.