PREDICTIVE ANALYTICS IN COLLECTIONS: Maximizing Your Payments and Loyalty Building Superpowers
The phrase “not all heroes wear capes” was first said about collections departments back in 1982…
Ok, so that’s not exactly true, but perhaps it should be. The teams behind your collections strategy, whether it’s collections, risk, or operations personnel, are the unsung heroes of your organization. Why? Because they support your customers through what is perhaps the most stressful part of the customer lifecycle, they turn at-risk customers to ones that are loyal for life, and they recoup money that in turn helps your business keep moving forward.
They may not wear capes, but collections professionals create a brand-defining experience that has the power to take you from villain to hero in the eyes of your customers.
1. Disjointed customer experiences – From reliance on dialers to contact customers to difficulty making sure collections experiences are seamless, challenges caused by disparate systems and legacy technology prevent collections teams from creating experiences that build loyalty. 2. Increasing number of at-risk accounts – Economic uncertainty increases defaults and lowers payments. Without strategies that can automate the identification of high-risk accounts, segment those most likely to pay, and allocate resources to high value-at-risk accounts, collections teams face consistently higher risk of write-offs. 3. Reactive collections strategies – Reacting when accounts go into default limits the impact your collections team can have on losses. Without the ability to identify at-risk accounts early, organizations cannot work with customers to proactively prevent default. 4. Growing loan loss reserves – As economic uncertainty drives increasing defaults, financial organizations are forced to increase loan loss reserves to protect against unrecovered funds. Minimizing recidivism rates and improving collections is essential to keeping loan loss reserves under control. Collections Kryptonite: The Four Key Challenges Your Collections Team Needs to Overcome
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