Collections Optimization: Selected case studies throughout the collections process

Transcription

1 Collections Optimization: Selected case studies throughout the collections process Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited.

2 Results for collections & customer management Select optimization case studies Collections path assignment -4% net impairment UK retail bank Collections contact strategy +10% net customer recoveries Global retail bank Cards initial limit +14% profit -9% bad debt Asia Pacific retail bank Profit based customer pricing +13% profit UK retail bank Debt collection agency allocation +10% net customer value +15% balance collected Global wireless telecoms Dialler strategy +4% net customer value +35% balance collected European debt collection agency Authorisations -50% declined transactions -15% referrals European multi-channel retailer Cards limit management 7 per account per annum profit improvement UK credit card 2014 Experian Limited. All rights reserved. 2

3 Optimise collection path decisions Case study: UK retail bank UK Retail Bank offering full suite of personal financial products Uses multiple channels for collections Net Impairment Value Outstanding More than 5m customers 4% 10m+ Assign the right path for each customer Same level (cost) of activity Minimize net impairment at constant cost Using Strategy Tree Optimization solution Predicted reduction of 4% net impairment Multi million reduction in value No increase in cost Low risk: No new collections paths created 3

4 Optimise self-cure strategies (grace days) Case study: Asian retail bank Over 25 million customers Full range of retail facilities Customer level based collection activity $1M+ 3% Earnings Self Cure Decide (1) the best period to leave customers to self cure or (2) when to place outbound calls to customers on each of the first 20 days past due Analytical challenge to predict probability to self cure given no contact and given contact Maximise Net RTO Balances Deploy strategy tree to collections system as a challenger No impact on operational processes 2% increase in RTO balance 3% increase in self cures Using Strategy Tree Optimization solution 4

5 Optimise dialler channel allocation Case study: Asian retail bank A top tier Asia-Pacific bank Credit cards portfolio $1M+ 7-14% Maximising the amount of cash collected through the dialler Annualized Payments Collected Uplift per Contact Channel By improving allocation of accounts to dialler actions (internal, outsourced call, IVR, SMS) Develop an optimised strategy to determine dialler contact channel of each account Maintain volume of accounts sent to each contact channel Annualized benefit of over $1M in payments collected Consistent uplift from optimization across all contact channels (7 14% above control) No change in total volume of accounts per contact channel 5

6 Optimise DCA allocation Case study: EMEA wireless telecom provider European telecommunications operator Over 2 million customers and a range of mobile services 10% 15% Decide which DCA to send each delinquent customer Net Customer Value Balance Collected Maximise the amount collected and increase reconnection rates Strategy Tree Optimization Segment the customers finely by demographic and behavioural groups 10% increase in net customer value Earnings for each DCA increased an average of 9% Increased the amount of balance collected from 20 to 23% Higher rate of reconnections 6

7 Optimise number of dials Case study: Debt collection agency A large European debt collection agency or debt buyer Maximising the amount of cash collected through the dialler No alteration to the total number of dials available or resource allocation Develop an optimised strategy to determine when to stop dialling each account Utilise available dials as efficiently as possible. Some accounts were dialled more, others less 30% 8% Cash Collected Connect Rate 30% increase in cash collected against a champion strategy Connect rate increased across all activity, by 8% on average Increased NPV across entire collections lifespan (subsequent collections also increase) 7

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