3 Ways to Improve Your Collection Strategy with Analytics
In the age of the “big data” economy, many growth-focused collection businesses are using data analytics tools as part of their business strategy. However, the real value comes when organizations can merge data into business analytics-intelligence platforms.
Debt collection is comprised of many complex processes that often require a multi-pronged strategy to both improve collection yield and create a better consumer experience. Each change in strategy can impact your revenue margin. With RPA-driven business analytics solution such as IPerform Analytics® (IPA), you can gauge the profitability of each delinquent account, time to repayment, and performance of each communication channel, seamlessly within a single, visual dashboard.
To help you accomplish everything mentioned above, we’ve compiled a list of three to-do's that you should be able to complete, using your existing collection analytics platform. These must-do's will ultimately super-charge your operations and reveal key consumer insights, helping you identify areas for improved productivity and performance.
1. Consumer segmentation for better targeting
The data provided by business analytics platforms can be put to good use, with your teams segmenting like-minded consumers into groups according to their payment behavior. When it comes to collections, not all consumers are equal. Thankfully, with business analytics platforms, you can identify such differences. You can pinpoint which consumers are likely to have a higher probability of paying, plan operations accordingly, and get maximum collections output in a short time.
Given high-risk customers require more time and attention from your team, data can help you instantly identify which customers are behind their repayments. More importantly, you can always use historical data to predict which new customers might fall into a high-risk group and approach them with a tailored repayment plan for better outcomes. The right segmentation of consumers can even enable you to automate low-priority interactions, saving your agency up to 30% of consumer contact costs.
Given debt collection is a complex process in transition, it is always tricky to optimize your existing agents to produce the best collection outcomes. By having your service provider integrate your speech analytics to the business analytics platform, you can unlock a data treasure-trove that can inform your consumer contact strategies and help you do more with fewer agents. History of response data and outbound calls can help determine the best time to contact the consumer within the new Reg F contact framework. It helps in initiating calls at times when the consumer is most probable to answer. This increases contact efficiency and allows for directing efforts towards high-risk accounts.
3. Identification of the correct contact method(s)
Having access to all your data in one place means that it can be easily analyzed. You have the full picture at your disposal—from your customers’ preferred channels to the data indicators that demonstrate how successfully your outreach strategies have performed for a particular channel. This can even empower you to group similar consumers (first-time defaulter, lazy consumers, bad debts, point of no return customers) together and contact them via the same channel, to boost your collection success.
In-depth business intelligence for best collection strategies: Business analytics can make your collection approach both more efficient and effective. However, it is first important to ensure that your QA team and leadership are equipped with the right tools for the data-informed decision. IPERFORM Analytics® (IPA) by Provana automates all processes associated with the collection’s life cycle, from data management to last consumer interactions. It enables you to adopt a proactive approach to debt collection while ensuring optimum operational efficiency. In a single visually rich dashboard, you get a complete glimpse of where your consumer portfolios stand today. You can view the aggregate data and then drill down to deeper details of any segment.
IPA® has enabled businesses to formulate highly effective strategies to curb debts, predict collection, and enhance overall business performance. If you are seeking ways to reduce consumer contact costs while increasing revenues and optimizing efficiency, click here.