Our approach focuses on analytics, automated solutions, and qualified people to optimize collections success. We define accounts most likely to roll, run off, self-cure, default on first pay, or respond to treatment by utilizing balance, risk, demographics, performance, psychographically based segmentation, collections/recovery scorecards (account and customer), roll rate models, behavioral risk scorecards, scorecard validations, and monitoring. This gives us the best strategy for treating collections accounts.
Employing analytics helps determine who to contact and what the best time and method of intervention are. Treatment and channel optimization and “Best Time to Call” models ensure that when the call is made, it fits the right timeframe to optimize contact. Segmentation analytics define areas that generate good cash flow with minimal expense, low cash flow, and profiles based on collections attributes for an optimized contact strategy. By utilizing these methods, we can redeploy resources from low to high segments for annual loss savings; for one client, this resulted in a savings of US$3.6 million.