example of Impact - REVENUE / GROWTH

Digitizing collections from customers

details

Client background and situation:

Financial services client

Financial services client

Facing rising delinquency volumes and days sales outstanding

Facing rising delinquency volumes and days sales outstanding

Needed a more effective and customer-centric solution

Needed a more effective and customer-centric solution

THe past

Prior approach & challenges:

Hired more collections staff which was increasing costs without yielding desired results

"One size fits all" approach to collections with heavy use of dialing and letters especially after 30 days overdue

Limited segmentation of its customers to understand their willingness and ability to pay and didn't know contact preferences

Digital channels were lightly used and mostly abandoned for later delinquencies

Hired more collections staff which was increasing costs without yielding desired results

"One size fits all" approach to collections with heavy use of dialing and letters especially after 30 days overdue

Limited segmentation of its customers to understand their willingness and ability to pay and didn't know contact preferences

Digital channels were lightly used and mostly abandoned for later delinquencies

solutions

Coppertree Partners approach:

strategy reformulation

Led effort to completely redesign collections strategy for more multi-channel approach

segmented customers

As majority of customers were low risk, moved them to digital communication and self-service channels (email, text, online chat) with limited and targeted exceptions for live support. For high risk and high value accounts reorganized collections team towards more ownership model for tailored communications suitable for repeat conversations

redesigned communication plan and approach

Revamped and rewrote communications to delinquent customers with much higher empathy and optionality for resolution

Impact:

  • $35M incremental collections achieved above benchmark with 25% decrease in average days sales outstanding

Additional insights and takeaways

High empathy is a winning strategy. Collections doesn’t have to be an antagonistic customer experience. Many customers intend to pay and a warm digital outreach can be very effective and efficient. Technology today such as data analytics and AI can help you enhance digital approaches and suggest sequences of contact based on particular customer profiles which might reduce service costs. Digital platforms should offer the same functionality as the phone such as setting up a payment plan or scheduling automatic payments. Make it easy for customers to get to a resolution with you through self-service options and kind guidance.

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917-727-6345

neil@coppertreepartners.com