Balance collections with retention for each customer Decision Analytics for debt management in telecommunications
Debt management for telecommunications The dynamic telecommunications market is seeing an almost unprecedented level of customer delinquency. Pressure to grow and retain the subscriber base, combined with higher bills resulting from the convergence of services, as well as growing use of third party content, mean that telecommunications operators are facing escalating write-off amounts. This has led to increased pressure on the debt management operation to recover these outstanding amounts. Experian has worked with telecommunications operators around the world, and uses this experience to deliver a Decision Analytics proposition that addresses the key debt management challenges. The proposition enables operators to minimise bad debt and rehabilitate customers rapidly, to reduce churn and maintain revenue streams for the future profitability of the organisation. However, in a highly competitive environment, it is easy for customers to switch between suppliers and leave debts behind them, meaning a close management of the customer relationship during collections is essential, to ensure retention and reduce churn. Operators are able to automate and streamline the collections process to collect more debt from more customers.
The challenge Revenue leakage and debt management Poor credit management is often a significant contributor to revenue leakage. An inefficient debt management infrastructure is often the result of a fast growing subscriber base, without the implementation of more sophisticated systems and processes that can handle the complexity of the high volume, low value debts that are typical of this industry. It has become critical for operators to understand and manage the cost to collect so that it does not exceed the value of the debt. Automation can significantly impact on efficiency, enabling operators to grow their subscriber base without growing the collections personnel. Operators are increasingly recognising that a dedicated debt management solution is the key to improving collections performance, to collect more debt, more quickly, improve cash flow and thus minimise revenue leakage. Customer churn The wealth of service providers offering competitive deals has resulted in customers demanding higher levels of service but being able to rapidly switch between operators, leaving unpaid bills behind them. In saturated markets customer retention is one of the drivers of success and it is no longer effective to immediately disconnect delinquent customers. Operators need to maintain a good relationship with delinquent customers in order to rehabilitate more customers, more quickly and to return them to a position where they are able to positively contribute to revenue again. Early intervention with good communication encourages customers to remain with the organisation long after they have been rehabilitated. The answer Experian offers a Decision Analytics answer to meet these challenges. It integrates segmentation and profiling of customers with automation of collections activities to create a complete proposition for debt management in telecommunications. Next generation customer debt management places intelligent segmentation at the heart of the processes and activities to drive dynamic, tailored collections strategies for each delinquent customer. Create customer profile and segment Customers are finely segmented according to a wide range of variables to create an accurate profile. Using behavioural scoring, each customer is assigned a risk score according to their account and delinquent behaviour, which is used throughout the collections activities to drive the most appropriate strategy according to the level of risk and value. Prioritise actions Using the profile, collections actions can be effectively prioritised, such as leaving habitual late payers to self-cure and focusing resources on high risk, high value customers. Communicate through preferred contact channels Operators are able to utilise their own technology and the customer s preferred communication channels, such as SMS, for effective personalised contact with the customer. This can include proactively sending limit warnings to reduce the number of customers entering delinquency. Implement provisioning Both automatic and manual provisioning can be achieved, so that suspension, termination and re-activation, barring and debarring and throttling and download restrictions can easily be applied to both encourage and reward payments. Automate manual processes With a large volume of lower value debts, automation can have a significant impact on operational costs. Collections activities are automated to minimise manual intervention, and enable staff to concentrate on higher value, higher risk collections. Decision Analytics for debt management in telecommunications
Meeting the challenges of debt management I need to improve collections efficiency I need to improve collections effectiveness I need to reduce the cost to collect Implementing a comprehensive debt management approach Use accurate assessment to determine and implement the appropriate approach, from in-house collection, outsourcing to DCAs and implementing legal processes. Enabling prioritised collections activities Use behavioural scoring and segmentation to dynamically create accurate and tailored collections activities according to the level of risk and value of the customer. Delivering automation, workload balancing and intelligent allocation Automate and streamline collections activities, enabling skilled collectors to be matched to the most appropriate cases. Minimise activity costs and time by taking the most appropriate action Maximise value from DCA activity Effectively use legal processes Improve recovery rates Increase cash flow Reduce bad debt write-offs Optimise collections activity Improve roll rates Reduce collections costs Decrease time to collect Improve staff productivity Reduce manual tasks Focus collections resources on high risk, complex cases
I need to maintain customer relationships Creating a focus on rehabilitation Use customer-level profiling to accurately assess and identify which subscribers should be retained and take action that balances recovery with the relationship. I want to achieve rapid return on the investment in a debt management solution Delivering an agile deployment Ensure the benefits of the solution are realised more quickly with an agile implementation. I want to continuously improve the efficiency and effectiveness of strategic debt management Deploying a value-added proposition Implement debt management capabilities specifically designed with built-in intelligence for the telecommunications market. Protect future revenue streams Reduce churn Increase customer loyalty Realise business benefits faster Focus on value-added activities Reduce risk with proven Reduce risk with proven systems and practices systems and practices Adopt effective practices from leading organisations worldwide Decision Analytics for debt management in telecommunications
Integrated products and services Consulting Consulting is at the heart of every Decision Analytics delivery by Experian. Consultants work with clients at every stage of the project, firstly to fully understand the business and strategic direction, and then to help design and implement systems and processes that deliver objectives. Following implementation, Experian consultants work with clients through a structured and regular review programme to continually evolve and enhance strategies so that organisations continue to gain maximum value as their needs change and the business grows. Experian creates a partnership with clients to deliver a system that addresses their business challenges for today, and in the future. Bringing a fresh approach and independent viewpoint to every business, it delivers practical solutions that deliver measurable results. Tallyman software Tallyman is the sophisticated software system for managing customer revenue and collection. Specifically designed for consumer credit grantors, or organisations which extend consumer credit as part of their business model, Tallyman provides its users with the necessary tools to implement fully integrated, end-to-end collections processes with flexible user applications and efficient automation. The key to Tallyman s ability to collect more revenue lies in its rulesbased architecture which underpins all the activities and functions. Rules can be as simple or as complex as required to ensure that the solution precisely meets requirements. Tallyman s workload targeting function assigns accounts to be manually worked or to be automatically processed by either a worklist or a route. Context sensitive displays mean that collections agents have all the relevant information at their fingertips to enable faster, more informed decisions. Management information Tallyman provides the ability to evaluate the performance of the implemented processes using visual interactive real-time performance dashboards and flexible and powerful management information through a suite of defined collections reports. Progress of work queues, value of revenue collected and the progress of payment arrangements can all be monitored against KPI targets. Using dashboard tools, managers can quickly predict daily outcomes and dynamically allocate resources and work queues in order to optimise system performance. Modular technology with flexible delivery options The system has been designed and built for agile implementation, with all the elements required for effective debt management, but with the ability to customise elements to suit individual business requirements. The functionality in the technology has been designed to be modular, so it can deliver the functionality needed today, and meet the needs of the business tomorrow. Tallyman is designed to integrate seamlessly with all leading billing and customer management solutions for streamlined operating efficiency. The fully scalable system is capable of processing millions of customer decisions rapidly in this mission critical environment.
About Decision Analytics from Experian Decision Analytics is the international division of Experian specialising in providing credit risk and fraud management consulting services and products. For more than 30 years, it has developed its best practice analytical, consulting and product capabilities to support organisations to manage and optimise risk; prevent, detect and reduce fraud; meet regulatory obligations; and gain operational efficiencies throughout the customer relationship. With clients in more than 60 countries and offices in more than 30, the Decision Analytics division of Experian delivers experience and expertise developed from working with national and international organisations around the world across a wide range of industries and business size.
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