Collections Optimization:
Selected case studies throughout the
collections process
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Results for collections & customer management
Select optimization case studies
Collections path assignment
-4% net impairment
UK retail bank
Debt collection agency allocation
+10% net customer value
+15% balance collected
Global wireless telecoms
Collections contact strategy
Dialler strategy
Global retail bank
+4% net customer value
+35% balance collected
Cards initial limit
Authorisations
+14% profit
-9% bad debt
-50% declined transactions
-15% referrals
Asia Pacific retail bank
European multi-channel retailer
Profit based customer pricing
Cards limit management
+10% net customer recoveries
+13% profit
UK retail bank
European debt collection agency
£7 per account per annum profit
improvement
UK credit card
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2014
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2
Optimise collection path decisions
Case study: UK retail bank
 About the client
►
Key benefits
UK Retail Bank offering full suite of personal financial
products
►
Uses multiple channels for collections
►
More than 5m customers
Net
Impairment
Value
Outstanding
4%
£10m+
 Business challenge
►
Assign the right path for each customer
►
Same level (cost) of activity
 Our solution
►
Minimize net impairment at constant cost
►
Using Strategy Tree Optimization solution
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



Predicted reduction of 4%
net impairment
Multi million reduction in £
value
No increase in cost
Low risk: No new
collections paths created
3
Optimise self-cure strategies (grace days)
Case study: Asian retail bank
 About the client
►
Over 25 million customers
►
Full range of retail facilities
►
Customer level based collection activity
Key benefits
$1M+
Earnings
 Business challenge
►
►
Decide (1) the best period to leave customers to self
cure or (2) when to place outbound calls to customers
on each of the first 20 days past due
Analytical challenge to predict probability to self cure
given no contact and given contact
 Our solution
►
Maximise Net RTO Balances
►
Using Strategy Tree Optimization solution
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Experian Public.




3%
Self Cure
Deploy strategy tree to
collections system as a
challenger
No impact on operational
processes
2% increase in RTO
balance
3% increase in self cures
4
Optimise dialler channel allocation
Case study: Asian retail bank
 About the client
►
A top tier Asia-Pacific bank
►
Credit cards portfolio
Key benefits
$1M+
 Business challenge
►
►
Annualized
Payments
Collected
Maximising the amount of cash collected through the
dialler
By improving allocation of accounts to dialler actions
(internal, outsourced call, IVR, SMS)


 Our solution
►
►
Develop an optimised strategy to determine dialler
contact channel of each account
Maintain volume of accounts sent to each contact
channel
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
7 -14%
Uplift per
Contact
Channel
Annualized benefit of over
$1M in payments collected
Consistent uplift from
optimization across all
contact channels
(7 – 14% above control)
No change in total volume
of accounts per contact
channel
5
Optimise DCA allocation
Case study: EMEA wireless telecom provider
 About the client
►
►
Key benefits
European telecommunications operator
10%
Over 2 million customers and a range of mobile
services
 Business challenge
►
►
Net
Customer
Value
Decide which DCA to send each delinquent customer
Maximise the amount collected and increase
reconnection rates


 Our solution
►
►
Strategy Tree Optimization
Segment the customers finely by demographic and
behavioural groups
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

15%
Balance
Collected
10% increase in net
customer value
Earnings for each DCA
increased an average of
9%
Increased the amount of
balance collected from 20
to 23%
Higher rate of
reconnections
6
Optimise number of dials
Case study: Debt collection agency
 About the client
►
Key benefits
A large European debt collection agency or debt buyer
30%
8%
 Business challenge
►
►
Maximising the amount of cash collected through the
dialler
Cash
Collected
No alteration to the total number of dials available or
resource allocation

 Our solution
►
►
Connect
Rate

Develop an optimised strategy to determine when to
stop dialling each account
Utilise available dials as efficiently as possible. Some
accounts were dialled more, others less
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Experian Public.

30% increase in cash
collected against a
champion strategy
Connect rate increased
across all activity, by 8%
on average
Increased NPV across
entire collections lifespan
(subsequent collections
also increase)
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