CCR2 Customer Engagement
The use of data in the collections cycle
Creditors and collectors are increasingly finding that best practice can only be achieved when the best data is available
Beth Whelan Head of collections and recovery products, TDX Group
beth.whelan@tdxgroup.com
The power of data to drive competitive advantage in all stages of the customer lifecycle is widely understood; however, data quality is often worse the further it travels downstream in the customer lifecycle, as it has to pass through multiple systems before reaching the point of collection. At TDX Group we see our clients, across
all sectors, facing similar challenges within their collections function around financial performance, operational complexity due to regulatory requirements, and cost challenges. In addition to these challenges, the
organisations are trying to continuously improve customer experience and protect their brand reputation.
Leading the way Businesses who effectively use data and analytics to predict the likelihood of debt
recovery and can model the most appropriate and cost-effective strategy will resolve customer accounts more quickly and deliver an improved net return.
The leaders in the debt-collection space
These data sources could include customer demographics, previous collection and account activity, geographic data, financial profile, and risk ratings which, when combined, drive powerful insight and deliver a better picture of the customer profile
will undoubtedly be those who use a vast and rich pool of data from many kinds of internal and third party sources in order to develop their recovery models and strategies. These data sources could include customer
demographics, previous collection and account activity, geographic data, financial profile, and risk ratings which, when combined, drive powerful insight and deliver a better picture of the customer profile. For example, advanced models can be
used to determine the most valuable accounts to focus collection efforts on, the best contact channel, preferred sequence of communications, and ideal timings for each customer or segment of customers to maximise right-party contact (RPC) rates to improve financial performance and minimise costs. By integrating analytics into the collections
function itself, and by creating a feedback loop to capture customer outcome data, businesses can ensure they quickly identify and adapt to deliver strategy changes that not only optimise performance but also improve outcomes for customers. This feedback loop can also be a great way
to show outcome and decision information to demonstrate that they are treating customers fairly.
Improving customer experience If a business understands the customer’s situation and presents it effectively to the collection agent, they can drive better customer conversations and outcomes that are more realistic and sustainable.
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www.CCRMagazine.com December 2019
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