IR Strategy is a software from Intelligent Results that allows clients to build customized collection scoring models using their own data and non-structured information. Within a few hours, clients can devise scoring models and strategies to assess accounts and project the financial impact of different collection efforts. The software integrates with existing predictive modeling and deployment tools. It provides simulations and reports to help clients optimize portfolio profitability and assess collector performance.

1. Project Cost
Effectiveness of Various
Collection Efforts
Non-structured data, monthly projections and collection strategy analysis
add value to scoring models.
By Richard Buse
I R Strategy, a strategy design and simulation product devel-
I oped by Intelligent Results, integrates with the company's
I existing I R Modeler product to make collection decisioning
and scoring an affordable, flexible in-house function. Financial
data and consumer information remains secure behind a cli­ent's
firewall. Based on their own data, clients devise their own
strategies and scoring models w i t h in several hours, and models
score accounts in minutes. Strategy scenarios project the finan­cial
impact of applying various collection and recovery efforts
toward scored accounts.
Intelligent Results, Inc, of Bellevue, Wash., was founded in
2001, and provides a platform of products for strategy creation
and simulation, predictive modeling, operational deployment,
and closed-loop reporting to the financial services industry.
Features
I R Strategy runs on Microsoft Windows, Linux and Solaris
workstations or servers, w i t h cost based on a monthly or annu­al
licensing fee. The company assists clients in initially develop­ing
the data sets that drive scoring models and decision trees.
Clients also supply unit costs for various collection efforts,
including calls placed
by collectors or pre­dictive
dialers, phone
numbers located by
A m
Intelligent Results"
skip tracing firms, or letters mailed to request payment. IR
Strategy incorporates these into its detailed business case
simulations.
Scoring model data sets—based on client account records—
include historic structured elements, such as the type of debt,
balance, age of account, credit grantor and previous actions taken
with that account. Non-structured data, gleaned from collector
and call center staff notes, also influences scoring models.
That non-structured data includes mentions of job loss, i l l ­ness
and other events that affect an individual's ability to make
payments, as well as comments regarding that person's respon­siveness
to payment requests. Intelligent Results reports that
including such non-structured data adds significant predictive
value to the scoring process, enabling clients to more effectively
devise appropriate collection strategies.
I R Strategy assesses various types of debt, including utility
charges, bank credit cards and retailer credit cards, with the
scoring model automatically building sub-models w i t h in a par­ticular
debt classification.
For increased relevance to agency commission and collector
performance assessment standards, I R Strategy provides rank
order charts and lift curves for any custom models produced on
Intelligent Results' software platform, including scored accounts
based on 30-day cycles, as well as six-month time spans. Those
different time spans also highlight the importance of timing for
launching collection strategies. A n account that scores high in
a 30-day cycle, but much lower in a six-month score, presumes
that the individual has money now, but may face severe cash flow
difficulties within six months.
IR Strategy validates all models and allows users to project
the cost effectiveness of applying various collection efforts to
accounts, such as incurring skip trace service fees to locate work­ing
phone numbers or supplementing predictive dialer calls with
requests for payment letters. I n addition to assessing the profit­ability
of current portfolios, this information lets managers deter­mine
what potential account placements are worth pursuing.
IR Strategy offers a full suite of reports for assessing scoring
effectiveness, collector productivity, portfolio profitability and
overall agency financial performance. IR Strategy data exports to
predictive dialers and other collection and recovery applications,
as well as to common business applications, including M S Excel.
Support
Intelligent Results provides training and initial support for instal­lation
and devising scoring models' data sets. Ongoing service
includes data set updates, as well as e-mail and phone support.
Summary
W i t h IR Strategy, Intelligent Results transforms collection
decisioning and scoring from a generic, high-volume, time-con­suming
service provided by outside vendors to a timely, flexible
and cost-effective in-house capability.
The applications decisioning and model-building process only
requires a few hours, allowing clients to develop models and
score accounts on an as-needed basis. IR Strategy enables man­agers
to devise work strategies that fully capitalize on scoring's
predictive value. O n a larger scale, that information drives deci­sions
for enhancing overall business efficiency and profitability.
I R Strategy deserves serious consideration from any organiza­tion
seeking the predictive value of collection scoring.
Intelligent Results, Inc.
www.intelligentresults.com
425-455-5100 GCOLLECTION
ADVISOR
Reprinted with permission by Collection Advisor magazine • 888.610.1144 • www.collectionadvisor.com