Are you developing your collection strategies with the entire customer lifecycle in mind? With the right tools and analytics, you can proactively make smarter collections decisions every step of the way. In this session we share how to: Test collection strategies early in the lifecycle Identify early warning signs pointing to collection Develop collections strategies that will help you maintain the relationship for future engagement Watch the recording of this talk on our archive page: https://www.experian.com/business-information/landing/sip-and-solve.html

1. 1 © Experian 02/10/2019
Sip and Solve
How to make smarter collections
decisions with analytics
Featuring:
Brodie Oldham
Consultancy Director, Commercial Data Science
Experian Business Information Services

2. 2 © Experian
Resource
Efficiency
Finite
Resources
Flexible Data
Delivery
• Introduce automation to reduce time and cost related to manual research.
• Focus collection resources on client outreach and recovery efforts.
• Develop segmentation strategies to apply appropriate collection methods.
• Maximize recovery, improve Customer Service, reduce 3rd Party costs.
• Standardize processes to promote consistent activity and results.
Resource
Efficiency
Recovery
Effectiveness
Process
Standardization
Flexible Data
Intake
• Utilize bulk data processing to reduce cost and time (Batch, Auto-Score).
• Leverage APIs to integrate data within Collection and AR platforms.
Flexible Data
Delivery
Cost-Effective • Derive value from commercial data at lower price points.
Collections prioritization drivers
Sip and Solve: How to make smarter collections decisions with analytics

3. 3 © Experian
1
2
3
Prioritize delinquent accounts with higher
likelihood of paying for collection efforts
Score driven processes throughout
lending cycle
Expedite accounts with low propensity for
payment to third party/legal collections
Key benefits from collection score
Sip and Solve: How to make smarter collections decisions with analytics

4. 4 © Experian Sip and Solve: How to make smarter collections decisions with analytics
Acquisition and onboarding
• Fraud and identity resolution
Portfolio Management
• Portfolio review
• Portfolio monitoring
• Early warning monitoring
Recovery
• Collection triggers
• Collection/recovery scores and attributes
• Collection platforms and software
• Right contact
Data driven tools for collecting

5. 5 © Experian
Aggressiveness of Collection Activity:
0 = None, 1 = Low, 2 = Medium, 3 = High, 4 = Very High
Limitations:
• Inefficient: Resources left manually
researching and prioritizing based on
aging.
• Ineffective: Collection methods may not be
suited to the account condition to maximize
recovery.
• Costly: Misapplied activities create
customer service issues and additional fees
if placed for 3rd party collection.
• Prioritization and activity determined by internal aging data alone
– Days Past Due
– Outstanding $ balance
• Inability to identify delinquent accounts most likely / unlikely to pay
Aging-based collection strategy
Sip and Solve: How to make smarter collections decisions with analytics

6. 6 © Experian
Benefits:
• Reduce costs: Send fewer collectible
accounts to collection agency, saving fees
• Improve customer service: Resolve
disputes in “first” party environment vs
stigma of third party collection placement
• Accelerate legal action, credit line freeze:
For low scoring accounts accelerate
collection / legal actions
• Prioritization and activity determined by both internal aging and external credit
– Days Past Due
– Outstanding $ Balance (supplied on score input)
– Experian Collection Score (supplied by score output)
• Ability to identify delinquent accounts most likely/unlikely to pay
Score-based collection strategy
Sip and Solve: How to make smarter collections decisions with analytics

7. 7 © Experian
Risk based approach
• Traditional collection strategies
Regulatory Control
• Volume and frequency of outbound efforts
Mobile only users increasing
• Low right party contact rates
• Failure to recognize how customers are
communicating
Customer experience
• Email, text, call, letters, etc..
• Relationship building
What are the challenges?
Collections
Sip and Solve: How to make smarter collections decisions with analytics

8. 8 © Experian
Summary and key takeaways
Sip and Solve: How to make smarter collections decisions with analytics
• Address collectability throughout the
lifecycle
• Many tools at your disposal
• Using scores and advanced techniques
enhance segmentation and decisioning
• Collection challenges are evolving
• Customer engagement is relationship
building

9. 9 © Experian 02/10/2019
Thank you!
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