The Challenge:

Our client, a prominent US-based bank encountered a persistent challenge for delinquent accounts, specifically those overdue by more than 60 days. Their PTP rate for customers in the 60+ day aging bucket (indicating accounts overdue by more than 60 days) was alarmingly low, hovering around 30%. This low PTP rate had a cascading effect, resulting in diminished recovery rates and elevated operational costs.

Recognizing the critical importance of improving their PTP rate, the bank realized that it needed to launch a comprehensive and concerted effort to address the issue effectively. They decided to partner with ResultsCX given our extensive track record in Customer Experience Management (CXM).

The Solution:

Our team of experts undertook a comprehensive approach to improve the Bank’s PTP rate. We began by developing customer personas across age groups, buying behavior patterns, propensity to pay, amongst others to gain a better understanding customer behavior. Next, we conducted design thinking workshops to brainstorm and prototype solutions. Finally, the team leveraged automation and analytics to maximize efficiency and established governance to create a self-adapting model.

Highlights of the solution included:

• Data Analysis and Segmentation: Analyzed customer data and categorized them based on financial behavior, risk, and payment history, enabling tailored collection strategies.
• Customized Communication: Provided personalized solutions to high-risk customers, and automated reminders and convenient self-service options to lower-risk ones.
• Multi-Channel Engagement: Integrated SMS, text-to-speech, and email messaging, thereby driving inbound traffic and enhancing debtor engagement. Concurrently, prioritized organization’s capability to efficiently manage the surge in traffic.
• Effective Contact Routing: Deployed self-service interactive voice response (IVR), skills-based routing, and account ownership for effective contact routing. This enabled the right agents to handle the most appropriate calls, maximizing PTP.
• Unified Collector Environment: Adopted a unified workflow application to manage multiple communication channels efficiently. This allowed agents to access debtor information promptly, personalize greetings, and streamline call processes, resulting in more productive calls.
• Digital Transformation: Improved online and mobile banking, integrated chatbots, and AI assistants for customer support regarding debts.
• Best Time and Propensity to Pay: Implemented best time and propensity to pay models to determine the ideal times to contact debtors. The data-driven approach scheduled campaigns for maximum productivity.
• Interaction Analytics: Deployed speech analytics to enable analysis of 100% of calls, identifying agent performance trends, in turn enabling skill-sharing and targeted training to enhance agent productivity.
• Effective Workforce Management: Workforce management tools ensured the right number of collectors were available to meet service level expectations, while helping managers plan for unexpected scenarios and manage leave requests.
• Incentivized Payment Plans: Introduced incentives such as reduced interest rates or fee waivers for customers based on their segment and payment history.
• Enhanced Training: Coached agents in empathy, negotiation, and conflict resolution,
• emphasizing respectful interactions.
• Continuous Monitoring: Monitored PTP rates daily, adapting strategies based on trends, and gathered feedback from customers and agents for further improvement.