example of Impact - REVENUE / GROWTH
Digitizing collections from customersdetails
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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