This forum focused on improving credit and collections strategies through customer segmentation, payment behavior analysis, and arrears management. Participants shared actionable insights, emphasizing the importance of cross-functional collaboration, employee engagement, and targeted customer strategies. A presentation from one of the benchmarking participants demonstrated how data-driven segmentation and process adjustments can significantly reduce uncollectible expenses and improve customer outcomes.
The discussion highlighted a strategy for segmenting customers into five categories based on payment behaviors: “Always Pay,” “Late Pay,” “Won’t Pay,” “Can’t Pay,” and “Never Pay.” By tailoring approaches to each segment, participants improved collections effectiveness while maintaining a focus on customer experience. Key changes included limiting repetitive holds, reducing payment plan enrollments after defaults, and connecting struggling customers with assistance programs. These efforts resulted in a 35% reduction in holds, overall arrears improvement, and a decrease in write-offs.
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