The changing nature of collections How a dynamic and intelligent collections process can reduce risk and improve debt recovery

For decades, organizations, including financial services providers, retailers, telcos, and utilities, have operated under the assumption that delinquency rates rise during economic downturns. But with a reported nine in 10 consumers actively looking for ways to reduce their debt, are companies taking the right action to mitigate this risk?

As many billing professionals will attest, adaptive, personalized communication is the key to every successful collections strategy. Reaching the customer at the right time, on the right channel, and with the right message is one of the most effective ways to reduce the risk profile and increase debt recovery.

In this context, traditional collections operating models must transform and evolve. By combining data, advanced analytics, and intelligent automation, companies can better manage their collections activity and maximize the recovery of a debt portfolio.

4 truths every modern collections strategy must adhere to

• Digital is the new normal.

Close to 40% of customers are now classified as digital-only. They make purchases using non-cash methods and manage billing through digital channels. Given this shift, organizations should place greater emphasis on digital communications, especially for customers who prefer to use online channels.

• Self-service has become table stakes.

For digitally-savvy customers, self-management is an essential part of the experience. Providing continuous access to account information and enabling an intuitive payment option via self-service platforms is necessary for modern organizations.

• Every process must be organized around the customer.

Customers are accustomed to personalized services and offerings – and that includes the recovery process. Organizations must take an adaptive approach to client communications, tailoring the message and methods based on the individual’s profile and preferences. 

• Data and AI should enable improvement over time.  

The growing use of data and supporting technologies, such as AI, ML, and cloud computing, can vastly improve decision-making, accuracy, and speed. Companies that automate some aspects of the collections process can unlock valuable efficiencies while improving outcomes. Further, processes that leverage digital tools should also be able to learn from experience, enabling the organization to evolve continuously.

Creating a dynamic collections function powered by data, advanced analytics, and AI, grounded in Salesforce

With changing customer behaviors and preferences, organizations can no longer rely on traditional contact methods to reach their customers. Nor should they follow a static process that consists of the same steps, regardless of the customer profile. 

Given the advanced capabilities of data, analytics, and AI, companies can make the recovery process more dynamic, tailoring key elements to enable a truly personalized and intelligent approach.

Taking collections and recovery to the next level with the Globant Smart Collections Platform (GSCP) powered by Salesforce

The Globant Smart Collections Platform (GSCP) is a new solution from Globant that leverages advanced data capabilities and automation to steer the management and maximize the recovery of a debt portfolio. Our platform, which leverages Salesforce platform components, including Salesforce Data Cloud, Marketing Cloud, Tableau, and Mulesoft, is based on three key components that help companies modernize and mature their existing recovery capability:

• 360-degree customer profile 

Knowing your customer is the first step towards effectively communicating with them. Our solution uses the Salesforce Data Cloud, Tableau, and MulesSoft to aggregate internal and external data sources (including first-party financial data and historical account activity with third-party geolocation data and macroeconomics) and integrate insights within recovery processes. This data is then used to create a 360-degree profile of the customer in Salesforce so that companies can categorize the customer by segment, such as those who are likely to self-cure or those who are at high risk, and understand their outreach preferences. 

• AI and advanced analytics

By leveraging new data sources (especially non-traditional risk data), the GSCP can generate a detailed, accurate score that anticipates the customer’s behavior and patterns. Our solution then leverages a unique and robust repertoire of models to better understand each customer and their financial situation. These new modeling techniques enable companies to identify the optimal contact channel and the best action to help improve overall debt recoverability.

• New journeys and collections strategy

Just as every customer’s financial situation is unique, so are their communication preferences. The scores generated during the modeling phase are integrated throughout the process, helping companies automate decisions and identify optimal channels. Our tool enables more than 15 customizable journeys powered by Salesforce Marketing Cloud and based on various customer segmentations, including risk level, payment capacity, willingness to pay, and contactability, to guide the organization in identifying and executing the ideal collection strategy for each customer. Activity within each journey is supported by messages and channels, including native channels like WhatsApp, LINE, push notifications, SMS, and email, that can be further optimized according to the company’s unique needs, processes, ROI, and other objectives. The solution can also incorporate chatbots or callbots and integrate with virtually any third-party channel with an API to coordinate a complete omnichannel campaign.

For example, GSCP users can create customer segments using Einstein Discovery. These groups are then activated within Data Cloud, adding more context and insight into the customer profile. Clients can then use pre-built customer journeys in Marketing Cloud to develop and send customized communications via the optimal channel for each segment. In so doing, companies can streamline and automate key aspects of their collections functions, helping teams work more efficiently while offering an enhanced customer experience.  

Getting started with the Globant Smart Collections Platform (GSCP) powered by Salesforce

Ready to take your collections and recovery process to the next level with data, analytics, and AI? Globant can help. Contact our team to learn more about the Globant Smart Collections Platform and our surrounding Salesforce platform and revenue operations services.