Matogen Applied Insights (MAI) helped a large corporate client to improve its debt collection strategy using advanced analytics.
When creditors struggle to collect overdue payments, it usually signifies the beginning-of-the-end of their relationship with the customer. Apart from improving collection rates on outstanding amounts, MAI’s client in the telecoms sector desired stronger customer retention, and subsequently, growth. They joined forces to embark on a programme of intelligent customer insights to manage the customer journey.
Debt collection advanced analytics
The MAI data science team undertook a comprehensive collections diagnostic, in addition to supporting the client’s collections team with managing the ‘run down’ book. MAI harnessed the foundational components, Right Party Contact (RPC), gleaned from advanced data wrangling and modelling, as well as the client insights enriched by alternative data sources and application of new variables created from Credit Bureau data. Right Party Contact enables the client to get hold of delinquent customers, overcoming the challenges of contactability and network dormancy, whilst the advanced customer analytics made it possible to adjust the service component of the customer’s package downwards to match their current affordability profile.
This innovative and flexible approach to debt collection analytics simultaneously increases collection, as well as customer retention rates.