Fluctuating industry dynamics, global economic slowdown, and a stringent regulatory environment are altering customer payment behavior. This change in customer behavior is negatively impacting businesses in the form of late payments, inconsistent cash flow, higher Day Sales Outstanding (DSO) and write-offs.
In the face of such challenges, organizations need to implement effective cost management solutions for their credit and collections portfolios. A cost efficient credit and collection strategy, coupled with effective controls, can enable organizations to manage portfolio risk with predictive analytics.
WNS’ predictive analytics-led collection strategy enables clients to identify the propensity of customers to pay back the outstanding debt and prioritize customers on the basis of their delinquency behavior.
Analytics models across all the stages of the collection lifecycle:
- Customer Segmentation: Segmenting customers based on delinquency scores
- Customer Targeting: Identifying and strengthening engagement with customers who show higher probability of delinquency
- Process Automation: Automating collection activities associated with low risk and low value customer accounts
- Workflow Management: Creating the right strategy (phone call / e-mail / voice mail / SMS or outbound dialler with connect to payment gateway) for each customer
- Increased visibility of debt owed by customers, individually and in totality
- Accurate prediction of customer delinquency with a propensity-based scoring
- Insights into delinquent customer account prioritization
- Improved recovery rates and increased cash flow
- Reduced bad debt write-offs
- Optimized collection activity
- Reduced collections costs and time
A UK-based utility major increases collections by 50% with analytics
WNS’ predictive analytics-led solution enabled the client to increase debt collection by 50% in just 3 months.