Five ways a managed service collections and recoveries approach can positively engage your customers to successfully recover debt

1. FIVE WAYS A MANAGED SERVICE
COLLECTIONS AND RECOVERIES APPROACH
CAN POSITIVELY ENGAGE YOUR CUSTOMERS
TO SUCCESSFULLY RECOVER DEBT.
QUALCO.EU
A managed service model offers credit providers such as banks,
retailers and utilities a number of advantages over the development of
an in-house collections and recovery approach – here’s how it can put
your customer at the heart of your strategy

2. Knowing your customer can mean
many things. In the context of
collections and recoveries conducted
through a managed service model, it
means knowing as much as you can.
KNOW YOUR
CUSTOMER

3. A MANAGED SERVICE
PROVIDER (MSP) RECEIVES
CUSTOMER DATA FROM THE
CREDIT PROVIDER AND THEN
ENHANCES AND ENRICHES IT.

4. To do so, it draws upon all available sources of internal
and external data. It is able to draw upon a wealth of
information that it holds itself and that is held by its
panel of partner debt collection agencies (DCAs).

5. Such rich data enables the MSP to pinpoint,
with a good deal of precision, the best way
to go about collecting the debt.
This will be determined by the nature of the
debt, its age and the geographical location
of the customer among other aspects.
Its approach will also be determined by
regulation and compliance.
KNOWING IS
UNDERSTANDING

6. PLACING THE CUSTOMER
FRONT AND CENTRE
AND TREATING THEM
FAIRLY WILL MEET
THE COMPLIANCE
OBLIGATIONS OF THE
FCA’S CONSUMER
CREDIT SOURCEBOOK IN
RELATION TO ARREARS,
DEFAULT AND RECOVERY.

7. An important part of the MSP’s
role is selection of DCAs to fulfil
the collection role.
It does this by selecting suitable
partners from its panel. For
example, a MSP can provide
access to many different DCAs
and select the right one on the
basis of their strengths and
capabilities in collecting debts of
particular types. They may have
knowledge and experience of
specific markets, geographical
areas and certain asset types.
WHO BEST TO
DO THE JOB?

8. Collections and recoveries is always
a work in progress. Monitoring DCA
activity and customer performance in
detail across an overdue debt portfolio
ensures that the credit provider will be
fully briefed at all times. This is achieved
through real-time dashboard reporting.
WORK IN
PROGRESS
AND RESULTS

9. IF ADJUSTMENTS TO THE COLLECTIONS AND
RECOVERIES APPROACH NEED TO BE MADE,
THEY CAN EASILY BE IMPLEMENTED BY THE
MSP WHO CAN SUGGEST ALTERNATIVES.

10. Uppermost in the minds of the client, the
MSP and the DCA is customer engagement.
Each communication with the customer is
an attempt to recover the debt but it is also
an opportunity to positively engage with
that customer.
COMMUNICATIONS

11. Nothing will be achieved by alienating a customer and this
might well fall foul of regulation in any case. Rather, a great
deal can be gained from cementing the creditor-customer
relationship with each helpful, sensitive contact.

12. What does success look like?
Of course it includes collection of
the overdue account but it achieves
so much more through customer
rehabilitation.
A reformed and mutually beneficial
relationship between customer and
credit provider opens the door to
future business.
OUTCOMES

13. RESULTS
In a nutshell the results are:
Reduction of
outstanding debts
Write back
of provisions
Less capital
impact
High level of
compliance
Customer
engagement and
rehabilitation
Potential
new business
opportunities
Saving in the
cost of customer
acquisition through
retention
Overall
efficiency in the
management of
the C&R operation

14. It’s not only about collections.
Though of course that is
important, customer engagement
brings a range of benefits as we
saw in our previous slide.
Such engagement springs from
a deep understanding of the
customer, based upon rich,
subjective customer data and
positive and compliant customer
contact.
LESSONS

15. In the end the collections and recoveries operation should
represent resolutions in the credit provider-customer
relationship. Longer term benefits, facilitated by the MSP,
are of value to both parties.

16. Five ways a managed service collections and recoveries approach can
positively engage your customers to successfully recover debt:
- 1 -
Understanding the
customer through rich,
accurate, timely data
- 2 -
Adopting the right
approach by skilled,
experienced DCA partners
- 3 -
Facilitating data collection
and analysis for the client
- 4 -
Engaging with the
customer in a positive and
compliant manner
- 5 -
Lowering non-performing facilities
through positive debt recovery,
customer rehabilitation and future
business opportunities

17. QUALCO.EU
THE DEBT
PORTFOLIO
BLUEPRINT
How to build a managed service model
to improve collections and recoveries.
A managed service model can help you to put customers
first, obtain the best possible result, and improve your
collections and recoveries.
DOWNLOAD NOW!
Managed service collections and
recoveries can outstrip in-house
resources. Discover how you
can benefit.
Download The Debt Portfolio
Blueprint: How to build a
managed service model
to improve collections and
recoveries to discover more.