On-line debt collection

Debt collection is the customer process for the payments that have had any issue. This is more crucial when it is a recurrent payment, such as an monthly direct debit, and even more when it corresponds with already incurred expenses, such as your mobile invoice.

In Spain, the most used payment method is the direct debit. For any number of reasons, around 8% of the debits are bounced back. From them, over 60% are customers that have all the intention to pay and that have had some trouble of any sort. Those debtors, that had no intention of being it, need extra care, as they are yet, and mostly, much more customers than debtors.

Kopernik break-up

According to our methodology, Kopernik, on-line debt collection could be broken-up along the following dimensions:

Management Control 100%
Required Documentation 20%
Risk Exposure 50%
CRM 80%
Mature Market 70%
Volume 80%
Omnichannel 100%

Being in your customer’s shoes

Your customer experience would be much better if:

  • He could receive the same warning through differente channels with all the available information. Customers have access from their smartphone to most of the channels (mail, SMS, twitter). How many? In Spain, two thirds of the population have a smartphone. Which profile are yours?
  • He could pay immediately on the best possible way, from the handiest device.
  • He would be treated according with his customer history.

For the business areas, all the process should be manageable. That would allow them to:

  • Establish different strategies, according tot the customer history and value, and with the evolution of each case.
  • Allow the self-service, avoiding calls as much the outbound to communicate the problem to the customers as the inbound from them to make sure that everything is settled. Not only are they expensive (they will be above 2,5€ each), but also they reduce the customer satisfaction.
  • Shorten the recovery cycle, because of the easier payment.

Have you noticed that the payment rejection file is a standard format?

This is a process often outsourced. Anyhow, the control must remain in the company, to be able to provide a really multichannel experience to your customers. To manage it, you have:

  • a dashboard in which to “see” what is really happening, wherever the collection may be happening.
  • the capacity to use the business rules to go live quickly with any tactique you have thought of to improve the ratios of the process.
  • the integration with your internal systems to ensure the coherence of the customer journey. In that case, it is simple, as the bank files have standard format and the payment gateways can be external.

We tell you more here about the Balandra projects. Call us if you need any further detail.


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