Collections
Collecting accounts receivable is an important but difficult part of running any successful enterprise. Individual businesses can lose tens of thousands
of dollars each year from delinquent accounts. Banks, credit unions and other financial institutions can lose much more. Collections budgets for many companies
have been creeping up in recent years as collections managers look for best practices that blend both effectiveness (dollars collected) and efficiency (effort expended).
Interactive voice response reminders (IVR) are an effective tool in the early-stage reminder phase of the collections process. They dramatically enhance process efficiency
by minimizing talk time and can be optimized by varying the time of day of the call to maximize the probability of reaching a live customer.
Solution
Voice Connection's Collections Application™ is an intereactive voice response (IVR) application that is personalized according to the customer needs. Voice messages
can include customer names, account numbers, past due amounts, phone numbers, etc. Response options can further enhance the functionality of the automated calls, including
multiple language options, message repeats, call transfers for instant bill payment, and reporting of invalid phone numbers.
These automated calls are most effective in the high volume, early stage "reminder" phase for for low risk customers. This frees up collection agents or manager
to target more difficult accounts. It can also be used to route inbound calls according to customer risk. Low risk customers can be routed to a self service application
while higher risk customer can be routed to experienced collection agents.
Result
Of course, the result vary by enterprise. But, one midwest credit union manager reported that outstanding debt decresed by 24% in the 6 months after instituting an
early-stage reminder of delinquent payments. This prevent account from progressing to the more advanced, difficult-to-collect phase. The collection agents are then free
to focus on more difficult accounts.
Clients
• Banks, Credit Unions,
• Commercial and retail enterprises
Need
• 'Outbound' early-stage reminders
• For use with low risk customers
Solution
• Collection Application™
Result
• Financial results vary by enterprise
• One midwest credit union reported 34% reduction in outstanding consumer debt
• Collections personnel focus on difficult accounts