Here is an excerpt from our Decision Management Systems Platform Technologies Report on Collections:
Collections, chasing down those who owe money to the organization and collecting it, is a complex problem. Traditionally handled with large teams of people “dialing for dollars” and a first-in, first-out or highest dollar value approach to prioritization, collections can be made dramatically more effective using Decision Management Systems.
Next best action
Some forward looking organizations are using Decision Management Systems to assign collections agents to work dynamically. Instead of having each agent work through their own queue, these systems dynamically prioritize the available collections work and assign it to agents as they become available. Using everything known about the overdue payment, predictions of the likelihood that someone will pay and even the skills of the collection agent, these systems determine the next best collection action.
|There is a general move toward “next best action” systems across the board. Whether it is actions for customers, actions for collections agents, audits or quality reviews, focusing limited resources on the next best action adds value when it replaces traditional, first-in/first-out systems.|
How to handle non-payment
Even when using standard queuing and assignment systems, collections organizations can benefit from Decision Management Systems. In particular the use of business rules and predictive analytics to determine the most appropriate way to handle non-payment situations is effective at reducing unnecessary calls and increasing collection rates. By identifying those most likely to simply have forgotten and prioritizing a simple reminder, by predicting the amount someone can pay and the likelihood they will stick to a commitment, as well as by ensuring consistent application of collections policy, Decision Management Systems can dramatically improve the way non-payment situations are handled.
Read more in our Decision Management Systems Platform Technologies Report.