Fast Collections In Slow Economy

Fast Collections in a Slow Economy Tools and Tips to reduce collection expenses while increasing recoveries Mr Aashish V Mittal & Mrs Teresa Botelho José ©1993-2008 Altitude Software - All Rights Reserved

Welcome to today’s Webinar Aashish V Mittal President of Religare Technova Business Intellect Limited. Teresa José Product Marketing Manager at Altitude Software. ©1993-2008 Altitude Software - All Rights Reserved 2

Outline • The Current Challenges • How to make the difference Tools and strategies that maximize Collections • Success Stories using Altitude Software • Questions & Answers ©1993-2008 Altitude Software - All Rights Reserved 3

The ability to pay has changed dramatically Reason: • Lost of income, unemployment… • India's middle class is drowning in growing consumer debt Consequence: • Inability to pay all bills • People choose to pay only the their most important debts: - 1rst Mortgage, - 2nd Health related, - ... ©1993-2008 Altitude Software - All Rights Reserved 7

Companies and Collection Agencies Face Dificulties to Collect • Credit-card receivables more than three months overdue is about 9% in 2008, according to ratings agency Crisil Ltd. in Mumbai. • In US, on avg. only 2 of every 10 accounts get paid • Start accepting reduced payments • Freeze payments until financial condition improves ©1993-2008 Altitude Software - All Rights Reserved 8

Banking Summary • India’s Banks have done reasonably well in deposit mobilization less so in credit allocation. • More Profits Require: - Better lending - Lower costs Or Government will have to add capital ☺

Collecting Overdue Bills in a Tough Economy: Tips for debt collectors 1. Do not ignore overdue bills. Re-bill promptly (as soon as the first bill is due) 2. Pick up the phone and call once a bill is overdue 3. Inform the debtor on all the consequences of not paying 4. Never apologize when you call or write 5. Be friendly. Your goal is to get put on the top of the list 6. Ask for the full amount. Avoid vagueness 7. Negotiate the terms (if it looks like your customer will have a problem paying) The above advice won't guarantee that your collection problems are over. However, it should help speed payments and that will keep your cash flow flowing during challenging times. ©1993-2008 Altitude Software - All Rights Reserved 10

The debt collection market in India “Big opportunity for BPOs” Debt Collection in India is probably the fastest Growing area in the contact centers! In “Debt Collection Done From India Appeals to U.S. Agencies,” Heather Timmons reports from Gurgaon, India that American debt collection agencies are expanding operations in India thanks in large part to the crumbling American economy and the low cost of Indian debt collectors “India will be the only place we grow this year,” said J. Brandon Black, the chief executive of the Encore Capital Group, a debt collection company based in San Diego. India is the company’s largest operating area, with about half the company’s collection force of more than 300. http://www.nytimes.com/2008/04/24/business/worldbusi ness/24debt.html?_r=1 ©1993-2008 Altitude Software - All Rights Reserved 11

Debt collection Challenges in every industry Time is Money: The fastest you are to contact the debtor, the more money you will get. Get your Target: Maximize the odds of getting in touch with your debtor. Have several contact alternatives and use intelligent systems to do it in a time and cost effective The Right Message: Make sure your agents follow the best practices and the debtor is informed of all the consequences of not paying. Be Friendly. Comply with applicable Legislation. ©1993-2008 Altitude Software - All Rights Reserved 12

Start Earlier, Recover More! Time is Money Collect more accounts before they age past the point of recovery. Take pre-debt cost-effective actions The tighter and shorter the debt collection process the more money will be collect. Important Enablers: Fast Rollout Outbound support, scripting, enhanced supervisor tool are a STAR in this market EMAIL, IVR, Predictive dialing for first massive contact. ©1993-2008 Altitude Software - All Rights Reserved 14

Reduce Collection Time Productive Increase due to Automation & Predictive Dialling The Phone is by far the most profitable way for collecting Intelligent Contact Management and Dial Rules are very important for your success Overall Efficiency is increased with Predictive Dialing Preview dial must be available for difficult/important cases

Agent Efficiency Unification $ Bill 1 $ Bill 2 Rule #1: Be prepared ! Rule #2: Never indicate the purpose of your call until you reach the debtor. Rule #3: Be specific. State only facts. Rule #4: Ask for the full payment today. Rule #5: Do not offer payment plan. Rule #6: Always ask more than you expect. Rule #7: After agreement, confirm verbaly and follow-up written. ©1993-2008 Altitude Software - All Rights Reserved 18

Operational Strategies to Increase Recoveries in Troubled Times • Increase number of valid contacts per Collector • Increase Quality calls • Collector Education • Contests ©1993-2008 Altitude Software - All Rights Reserved 19

Outline • The Current Challenges • How to make the difference. • Tools and strategies that maximize your Collections • Success Stories using Altitude Software • Questions & Answers ©1993-2008 Altitude Software - All Rights Reserved 20

Techniques being used to overcome economic excuses • Strategic Management of Contacts • Start contacting ASAP • Blend Inbound and Outbound • Never argue or argument. Use I see . Do not use But • Keep focused on the target: a solution • Build the script with Power words: - Help, Because, Today, Now, Immediately - Open ended questions • Use the Knowledge base for Overcoming objections • Look for additional payment sources - Ask family and friends for help - Many Consumers may qualify for a tax deduction if they pay the medical bills before December • Contests ©1993-2008 Altitude Software - All Rights Reserved 22

Reduce Collection Time How. Slow factors Altitude Solution No/little automation Outbound IVR Automated dialing inc. Predictive Broken view Single entity Full debt and contact history No dynamic guide for collectors Different scripts and behavior for increasingly difficult debtors. Takes time till a sucessful contact is Multiple contact options. done. Best time to call. Easy transfer of bad payers directly from normal customer care center. Report on uncontacble debtors and easy to setup a special traking campaign. Do not know exactly in each step the Integrated Workflow Engine. collection is stopped Prevent dead ends. ©1993-2008 Altitude Software - All Rights Reserved 23

Intelligent Management of Debt Altitude Supervisor and Altitude Reporting • Hitorical and Online reporting on setlements for debts in all maturty status. • Historical and Online Reports on the Not payment causes (More than 2/3 in average are not financial) • List/Export Debtors with no valid contact • List Settlements • Easily/Intelligently select the debtors you want to send to external collection agencies or collection layer • Integration with Business Intelligence Tools ©1993-2008 Altitude Software - All Rights Reserved 25

What results have our customers achieved? campaign/service Rapid Scripting tool Application development time Altitude -25% Deployment agents occupancy 30 m/hour Increase (outbound campaigns) Altitude 40-50 m/hour Efficiency Unified Dialer, Desktop & Knowledge Base nr. of contacts Increase a day Altitude +45% Productivity Value Increase Overall solution collected Collections Altitude +50% *Based on the results achieved by the customers that provide us data on the pre and pos Altitude installation.

Altitude Software We can help you make the difference You need a partner that can help you: Maximize the recovery of debts Minimize the rate of customer attrition • Quickly put in place a tele-collection program adapted to your needs • Accelerate your customer payment cycle • Personalize the approach according to the circumstances of each customer • 360º view of customer/entity • Manage the payment commitments agreed upon with customers • Constantly evaluate ROI Altitude Software India is ready to support you every step of the way to get the Highest Percentage of Debt Collected ©1993-2008 Altitude Software - All Rights Reserved 27

Start Earlier, Recover More ! Questions? We look forward to provide you additional information: www.altitude.com/collections teresa.jose@altitude.com Info.apac@altitude.com ©1993-2008 Altitude Software - All Rights Reserved 28

Start Earlier, Recover More ! Thank You! We look forward to provide you additional information: www.altitude.com/collections teresa.jose@altitude.com Info.apac@altitude.com ©1993-2008 Altitude Software - All Rights Reserved 29

Fast Collections In Slow Economy

by Altitude Software on Oct 27, 2009

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