How To Collect More,
Spend Less and Stay Compliant
Using Omni-Channel Contact Strategies
Jonathan Annis
Application Sales
FICO
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
How to Collect More, Spend Less and Stay Compliant
Using Omni-Channel Contact Strategies
How to jump start your collection
success by improving your customer
service strategies.
2
© 2014 Fair Isaac Corporation. Confidential.
What We Did to be This Happy! (WFIA 2013)
Winner: Black Horse Finance, Arrangement
To Pay Strategy
The organisation has introduced a communications system
called 'Straight Talking' when in dialogue with customers about
setting workable repayment arrangements, together with
innovative application of technology to manage the arrangement
thereafter. These include interactive SMS reminders facilitating
immediate call-back where necessary; online card payment facilities; flexibility;
24/7 access; and an emphasis on treating customers fairly. The approach has
resulted in significant improvements in successful collection of repayments while
simplifying the customer experience
3
© 2014 Fair Isaac Corporation. Confidential.
The Ethic of Care: Customer First
On behalf of:
David Morpeth,
Operations Director
Lloyds Bank Asset Finance
4
© 2014 Fair Isaac Corporation. Confidential.
Agenda
►Lloyds
Bank Asset Finance Brands
►Customer
►LBG
and Portfolio Numbers
Responsible Business
►A Responsible
►Culture
Business
Quadrant
►Customer
Response
►Digital
Innovation
►Close
and Questions
5
© 2014 Fair Isaac Corporation. Confidential.
Lloyds Bank Asset Finance
Deutschland Autokredit
6
© 2014 Fair Isaac Corporation. Confidential.
Blackhorse Motor Finance
New Business
Agreements
2017
2012
+200,000 new
applications per
year or 55%
growth
► Responsible
Live Book £m
2012
and sustainable growth responding to customer preferences
► Net Promoter Scores +75
► Leading the market in adapting to regulatory change
► Iconic partnership of the Blackhorse and Jaguar Land Rover brands
► Product development to extend sustainable affordability to more customers
► Developing new channels for the digital era
► Helping Britain Prosper
7
© 2014 Fair Isaac Corporation. Confidential.
2017
35%
Lex Autolease
Fleet Growth
2012
► The
2017
+%
Live Book £bn
2012
2014
+%
largest leasing company in the UK in a market worth £19.5b/annum
► c45,000 customers with 275,000 vehicles under management
► Responsible and Sustainable growth—customer NPS +65.9
► Sales channels include Public Sector, SME, Mid Market, Corporate and Mega
► Iconic Partnerships include—Volvo, Honda, Jaguar, Land Rover, Mitsubishi, Suzuki
► Helping Britain prosper—helping SMEs
8
© 2014 Fair Isaac Corporation. Confidential.
A Responsible Business—Our Values
► Putting
customers first
► Keeping
► Making
it simple
a difference together
► Our
values underpin everything we do, guiding
how we work and defining the standards we set
every day
9
© 2014 Fair Isaac Corporation. Confidential.
► We
invest in communities to help them prosper and grow
► We
work to continually reduce environmental impacts
► We
work responsibly with our external stakeholders
The 5 pillars are integral to our strategy
to be the best bank for customers.
12
© 2014 Fair Isaac Corporation. Confidential.
External Stakeholders
aim to be a great company to work for
Environment
► We
Communities
put customers at the heart of our business
Employees
► We
Customers
Responsible Business—Our Five Performance Pillars
Collections
Over the last 5 years:
► Simplified
collections and recoveries model
► Pro-actively
► More
reduced numbers of impaired accounts
specialised and dedicated service from debt purchasers
► Shortened
► Reduce
customer journey
hand offs/repetition
► Optimised
industry expertise through make/buy decisions
► Customer
centric conduct risk testing independent Risk function
13
© 2014 Fair Isaac Corporation. Confidential.
Collections in a Conduct Risk Environment
Used correctly this can be highly effective to the customer and to the business
► Segregate
“can’t pays” and “won’t pays”
► Make
longer lasting arrangements and promises
► Helps
direct colleagues in a consistent way
► Focus
on the top right hand corner
14
© 2014 Fair Isaac Corporation. Confidential.
Engaging Conversations—Not Scripted Outcomes
► Treats
everyone as an individual
► Allows
for tailored solutions
► Sustainable
Reassure
► Delivers
for both the business and
the customer
Resolve
15
© 2014 Fair Isaac Corporation. Confidential.
Relate
Digital Innovation Balanced with Customer Engagement
► Customers
want digital—Mobile, web, SMS, Interactive Voice Messages, etc.
► Flexible
servicing is what they often need, so we still talk to the customer to help
them make informed decisions
17
© 2014 Fair Isaac Corporation. Confidential.
Customers Choose When They Want Service
Customer Logged on (daily average by time)
CSC calls (daily average by hour)
CCC calls (daily average by hour)
200
160
120
80
40
18
© 2014 Fair Isaac Corporation. Confidential.
11pm
10pm
9pm
8pm
7pm
6pm
5pm
4pm
3pm
2pm
1pm
12pm
11am
10am
9am
8am
7am
6am
5am
4am
3am
2am
1am
12am
0
The Ethic of Care—Customer First
► It’s
about being more than just a business
► A responsible
business with clear ethics
and codes of responsibility
► Helping
Britain Prosper
► Empowering
► Innovative
19
customers
solutions
© 2014 Fair Isaac Corporation. Confidential.
FICO® Customer Communication Services
and Lloyds Asset Finance Summary
20
© 2014 Fair Isaac Corporation. Confidential.
Agenda
►Lloyds Asset
►Summary
Finance Collections
of Customer Treatments
►FICO®
Customer Communication Services
Call Fronting
►FICO®
Customer Communication Services
Interactive SMS
►What’s
21
Next?
© 2014 Fair Isaac Corporation. Confidential.
Continuous Evolution and Improvement
2008
2011
2013
2012
Business Challenges
►Consolidated
contact
center with newly multiskilled agents
►Making insufficient
outbound as priority given
to inbound
►Often
silent and
abandoned calls
regulations render AMD
technology useless. Agent
productivity is significantly
reduced impacting
performance
►SMS
response rates were
relatively low resulting in
multiple attempts to
achieve reasonable rates
of success which was
inefficient and causing
customer frustration
►Improve
the consumer
journey, increase
customer satisfaction
rates and net promoter
scores
Solutions
►Highly
segmented and
targeted auto voice
strategy with 23 unique
strategies. Extending
‘voice of the customer’
agent framework in to the
self-serve environment
22
© 2014 Fair Isaac Corporation. Confidential.
►Implement
a dialer
replacement strategy
where the auto voice
solution call filters
a/phones and wrong
parties without making
silent or abandoning calls
►Implement
an interactive
SMS solution that makes it
simple and easy for
customers to respond and
make a payment
►Analyze
and simplify the
script content to improve
the customer journey and
increase the number of
customers self-serving
Lloyds Asset Finance Collections
Multi-Streaming Is Key
► Multi-Streamed
Analyses
Data
Strategies:
Deploys and combines new technologies including FICO® Customer
Communication Services automated voice and interactive SMS
► Gives the customer choice and flexibility in how they manage their
arrears position
► From this Lloyds has increased the percentage of customers with
a successful outcome after 14 days in their contact strategy from 48%
to 63%
► Test and learn activities deployed over time to refine strategies
based on analyzed data
►
Data
► Internal
Account
Performance Data
► External Bureau Data
► Risk Score (H/M/L)
► Propensity to Pay
23
© 2014 Fair Isaac Corporation. Confidential.
Results
and
Analytics
Collect
and
Remind
Segment
Treat
► Communication
► Treatment matrix
that
best suits the customer
► Internal resource
required to ‘treat’ the
account
Credit
Management
Eco-System
► Days
delinquent + Risk =
Treatment
Channel
and
Solution
Customer Treatments
► Treatments:
Self Serve Versus Agent
% of Payments Recieved
►
Treatments are a combination of channel and solution
► The Channels utilized are:
90%
► FICO®
►
►
75%
Risk (15 Groups)
24
Early Warning High risk
<50 Days In Arrears
>50 Days In Arrears
Pay Now
Y
Y
Y
Part Pay and Promise
N
Y
Y
Promise to pay within 5 days
N
Y
Y
Spread arrears over 3 months
N
Y
N
© 2014 Fair Isaac Corporation. Confidential.
Self-Serve Payments
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
Feb-11
Agent Payments
Mar-11
Jan-11
Dec-10
Oct-10
Nov-10
Sep-10
70%
Aug-10
►
80%
Jul-10
►
85%
Jun-10
►
Customer Communication Services Outbound—fully
interactive self service calls offering payments, partial payments,
promises and arrangements
FICO® Customer Communication Services Call Fronting
FICO® Customer Communication Services Interactive SMS
Lettering
Web payments (push by SMS and letters)
Field based customer service representatives
Call Fronting—Challenging the Dialer
► Call
Fronting:
► Automated
outbound calls that ensure agents only receive calls with a customer on the
end
►
Call Fronting average right party contact rates = 5.3% compares to the dialer = 4.1% (a 30%
increase in productive contact)
► Outbound
calls more effective—freeing up agent resource to deal with the more indepth,
value add, customer queries
►
Call Fronting resource requirement = 3.9 FTE as opposed to the dialer = 8.4 FTE (a 54% reduction)
Adeptra Versus Dialer
RPC Success and FTE Requirement Comparison
14
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
12
10
8
6
4
2
0
1
2
3
4
Adeptra FTE
25
© 2014 Fair Isaac Corporation. Confidential.
5
Dialer FTE
6
7
Adeptra RPC
8
9
Dialer RPC
10
Call Fronting
Challenging the Dialer
Overall productivity has increased with
call fronting?
11%
11%
Agent motivation has improved with call
fronting?
Strongly Agree
Strongly Agree
Agree
Agree
33%
Neither Agree or Disagree
Neither Agree or Disagree
56%
Disagree
Strongly Disagree
Disagree
Strongly Disagree
11%
78%
Call fronting has created capacity for
queue working and 1-2-1
Call fronting makes resource and
capacity planning simpler?
11%
Strongly Agree
22%
33%
Agree
Neither Agree or Disagree
45%
34%
22%
© 2014 Fair Isaac Corporation. Confidential.
Agree
Neither Agree or Disagree
Disagree
Disagree
Strongly Disagree
Strongly Disagree
33%
26
Strongly Agree
Interactive SMS
► Interactive
yes
SMS:
► An
SMS is sent to the customer asking them to reply “yes” if they would like to make a
payment
► The customer can replay at any time, 24/7, same day or next day to receive an immediate
FICO® Customer Communication Services outbound voice call taking them to the
payment script
► A customer also has the ability to reply “stop” to stop receiving future SMSs
► The SMS is targeted and sent on the day a promise or monthly installment is due, or if a
direct debit fails
SMS
Response
CCS
Outbound Call
Pay Now Script
27
© 2014 Fair Isaac Corporation. Confidential.
Interactive SMS templates
► Interactive
SMS templates used:
► Your
monthly installment of $AMOUNT has not yet been
received; you can avoid a late payment charge of £25 by
making the full payment now. Reply YES to make a
payment and we will call you straight back. Or visit
www.blackhorse.co.uk/makeapayment.
► $COMPANY_NAME look forward to receiving your
payment of $AMOUNT $DUE_DATE today as agreed. To
make the payment now, reply YES and we will call you
straight back.
► Your $COMPANY_NAME direct debit payment for
$AMOUNT has not been paid by your bank. You can
make this payment now by visiting www.bank.com or reply
YES and we will call you straight back
28
© 2014 Fair Isaac Corporation. Confidential.
Interactive SMS Templates
Results
Interactive SMS Results:
► 38% of customers who received an SMS replied
► 30% of customers who received the automated call, went on to make a successful payment
Customers Making Payments
Before
Collection Rates (per month)
After
10%
Before
£350,000
8%
Before
After
12,000
£300,000
£250,000
6%
£200,000
£150,000
4%
£100,000
2%
9,000
6,000
3,000
£50,000
£-
0%
29
SMS Volumes (per month)
© 2014 Fair Isaac Corporation. Confidential.
0
After
Script Guidance
► If
it is long…It is wrong
► 75%
reduction in the number of words used,
effectively communicating the same message
► Remove duplication
► Remove the obvious ‘This is a call’…’This is an
automated service’
► You’re
► Role
► Keep
► Let
30
not writing a letter
play the script
it simple, fewer ‘key’ or ‘button’ the better
customers know how they can
© 2014 Fair Isaac Corporation. Confidential.
Customer Responses—Net Promoter Scores
Collections Contact Center
Detractor
Passive
Promoter
11%
11%
23%
21%
61%
66%
68%
Q3 13
Q4 13
Q1 14
Q2 14
NPS
+20
NPS
+45
NPS
+55
NPS
+56
25%
15%
24%
29%
45%
31
© 2014 Fair Isaac Corporation. Confidential.
Thank You!
Jonathan Annis
JonathanAnnis@@fico.com
Phone
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Learn More at FICO World
Related Sessions
►Unifying the Customer Experience Across the Life Cycle
►The Role of Technology in Compliant Collections
Products in Solution Center
►FICO® Customer Communication Services
►FICO® Engagement Analyzer
Experts at FICO World
►Ed Broyles
►Jonathan Annis
►Gabe Hopkins
►Rob Baker
White Papers Online
►Harnessing the Speech Analytics Advantage
►How Mobile Communications Can Improve Collections
►Five Imperatives in a Shifting Collections Landscape
Blogs
►www.fico.com/blog
33
© 2014 Fair Isaac Corporation. Confidential.
►Tim
Wilson
Please rate this session online!
Jonathan Annis
JonathanAnnis@@fico.com
34
© 2014 Fair Isaac Corporation. Confidential.