Tackling the top challenges facing businesses in collections for the next four years?

Burak Kilicoglu and Herman Peeters from Experian’s Global Consulting Practice give their perspective on the top three challenges identified by businesses in the area of Collections in the run up to 2020. To read the full report, which analysed responses from 255 key decision makers from 195 telecoms and financial services organisations in eight regions across EMEA, click here.

Top challenges in Collections:

  1. Improving the collections customer experience
  2. Reducing the time spent chasing late payments
  3. Reducing the costs to collect

What is your perspective on the top challenges identified by businesses?

With consumers becoming more digital, fuelled by proliferation of devices, it is clear that organisations need to invest more in omni/multi channel strategies and to adapt the traditional collections methods. Traditional collections strategies, based on letter and voice only, will become less effective in certain consumer segments and markets. In many markets, Collections Managers will confront more debts per household and, without changes in strategy execution, the effectiveness and efficiency of collections actions will be  compromised.

How can businesses overcome these challenges?

A Collections Manager should support customers with clear advice and easy access to options and channels to help them with their arrears. Internal and external data needs to be used more and more in advanced segmentation and differentiation models. With improved decisioning and adaption of modern channel choices (digital collections) the Collections Manager will overcome these challenges. Collections Analytics becomes more key in areas such as Channel use, Dialler Optimisation, Segmentation, DCA Allocation and triggering of Next Best Action in specific workflows, in order to improve and optimise collections efficiency and effectiveness.