Creating a customer centric email strategy in the collections process

Use of email as a communication channel in the collections process can provide following benefits -

• Increate the customer engagement
• Reduce the cost of operations/cost of collections

Challenges for collections organization

Growth:

Retail organizations (Banking, Insurance, Telecommunications, Retail and Utilities etc) are growing rapidly in terms of volume of customers and size of business, and thus increasing the number of accounts getting into collection cycle (delinquency) and rolling into arrears.

Operational workload:

Increasing number of collections account are generating additional workload for organizations service channel (call centre, service centres) and more importantly on DAC management team. They have more number of accounts falling into 30-60-90 DPD cycle.

Competition:

Every month at the same time many lenders are chasing the same debtors. Unless you have good knowledge of your customers, and strong relationships with them, you won’t be able to hit success.

Regulations:

Regulators which include government, central regulatory bodies and industry regulators, in every country have strong restrictive practises for collections organizations. Since collection is extremely sensitive area, there is a reputational risk associated if you stretch and go little beyond the boundary in the collections process.  There are cases in countries where organizations have hired goons to collect money from late stage delinquent customers. 

Cost of collections / Commission to DCA:

In most of the countries, DCA commission is based on the collection performance. Organizations has to pay out more commission to DCA for handling accounts in the mid and late stage delinquency cycle. 

Constraints:

• Focus on email address – Data collection at the time of customer acquisition might not include email address or typographical errors made by sales team restrict you to get in touch with customer by email.

• Overall email usage as a communication channel in the country, by customers, by organizations to engage customer (for example emails send out at the time of on boarding, new up sell or cross sell offers, Billing intimation and information etc)

• Reliance on other service channels for collections, for example calling every delinquent customer (cost of telephone calls) or visiting (cost of visit) or outsourcing the entire collection process to DCA (more commission payout, reputational risk)

 Example:

How and where (at what critical points) email communication can be use in the collection cycle -

Pre-delinquency Management

•          Payment reminders

•          Limit alerts (In case of credit cards & overdraft accounts in Banking, Post paid card in Telecommunication)

•          Transactions reminders

Early Stage Delinquency

•          Mild message – payment warning

•          Payment options suggestions

•          Request to call for assistance

•          Promise to pay confirmations

Mid Stage Delinquency

•          Promise/payment confirmation

•          Confirmation of conversations

•          Payment prompts

Late Stage Delinquency

•          Strong warning of legal action

•          Legal Teams / DCA Action

Business Intelligence and Analytics for Diagnostics Laboratory

I was requested by a friend for some help on his new project – Business Intelligence and Analytics for Diagnostics Laboratory. How can a diagnostic laboratory leverage the customer’s data for improving the revenue? I thought of jotting down my thoughts using my experience in the field of data, business intelligence and analytics which can be used as starting point…..

Segmentation

• Visitors (first time customer)
• Repeaters  

Lead Source -   

• Insurance companies – They refer their potential customers to get the health check up done before they offer life insurance cover.
• Employers - They refer their potential employees for health check ups so that they can hire physically fit people for the job.  
• Doctors – They refer their clients for various advanced medical test to be done 
• Individuals Patients – Individuals who subscribe for annual or six monthly packages for regular check ups (Patients suffering from Diabetes, Blood pressure etc are regular clientele at the laboratory)

 Recommendations:  

 Visitors -

• Provide vouchers, cash discounts or loyalty benefits for first time customers to convert them into repeat customers. Create and propose a family plan to increase the engagement.     

Repeaters

• Identify potential repeat customer based on his history or test data (based on the type of test conducted, reference history and general medical report). Create special offer for repeat customers. 

 High Value Customers –

• Identify high value customers and create special package for them, customers who can't find time to visit laboratory, a team of specialist can visit him personally and take the required samples for testing.  

Sourcing Commission –

• Identify top sources based on the number of referred customers and value of business. Create a program to incentivise the source based on their business potential.

 Other Recommendations -  

• Sent email intimations / SMS alert to customers for periodic testing, schedules etc (usually patients would not like to go to laboratory unless prescribed or advised by doctor on a periodic basis. Identify the customers who need periodic testing, sent them letters / email and SMS through Doctor)
• Provide information and health tips for preventive measures specific to their ailments on the blog / website (identify the media which will be well received by customers) 
• Create customer information portal with blogs, health section, for customers, provide a copy of reports online. 
• Tie up with large laboratory players in the market for re-selling their advance diagnostics package, specifically for customer whom you need to let go (because you don’t have the specific test equipments, facilities etc) 

Social media in emerging countries like India

India is expected to share a dais with US and China being the third largest internet user base by 2013 - Forrester Research said in a report. There are approximately 81 million internet users in India (as of November2008 which is 7 to 7.5% of Indian population). According to Facebook global report, India is ranked 20^th in terms of number of Facebook users which are growing at the phenomenal rate of 200 to 300% year on year.

Apart from the global players like Facebook, Orkut and LinkedIn there are plenty on local Indian players like BharatStudents, Bigadda, Chikka, Corners, Frooper, Khichdee, kyakare, OLX, Picsquare, SlideShare, Tezaa, weRead, Zapak, ZoomIn are trying to create their niche in the online market.

Some of the typical profile types on social networking sites are -

• Beginners – New entrants who create their profile on social media sites
• Observers – profile maintenance and explorers of social networking websites.
• Readers - Information like daily news, entertainment, education, job opportunities using Feed/syndication
• Evaluators (critics) – Active users of social media websites, who not only contributes but also spread the word / buzz about happenings on the space of social media.
• Writers (blogs, websites, Twitter)

In most of the emerging countries, the main usage of social media sites are Entertainment, Education, Networking, Job opportunities, Gaming and freely expressing yourself. Good news is that Shopping has entered into this list as one of the use of social media sites recently. Users are inviting opinions from peers and professions for their buying decisions.

I know a friend of mine who expressed wish to buy an ‘ABC’ make and company hatchback car on Facebook. When I asked her why she is interested in that particular make/company car, she had no specific reason apart from that she loved the way it looks. Someone from her friend’s network sent her link from critic’s website, information on how to buy your first car? Etc. Well needless to say she bought a car from different make/company of completely different looks, and by the way she had strong opinion on why this is the best car for her! Isn’t it impressive to see that social media has began to play important role in influencing such high value decisions.

One of the biggest concern people have about social networking sites is ‘Privacy’. My personal information (email and date of birth) along with entire listing of friend/social network get displayed on public domain. The problem is most users (Beginners and Observers) registers on the websites and disappear may be after few visits. Apart from basic password protection, no social media sites protect to guarantee any information shared on the sites. Just like you have ‘buyer beware’ in consumer marketplace, in social media space you have ‘user beware’, aware of what personal information you are sharing and with whom, till the time you have ‘privacy’ guidelines and regulations getting in place.

Microsoft Surface Technology in Retail Baking and Insurance Domain

Microsoft Surface is a multi-touch computer that responds to natural hand gestures and real-world objects, helping people interact with digital content in a simple and intuitive way. With a large, horizontal user interface, Surface offers a unique gathering place where multiple users can collaboratively and simultaneously interact with data and each other.

Microsoft Surface has four key capabilities:

• Direct interaction. Users can grab digital information with their hands and interact with content on-screen by touch and gesture – without using a mouse or keyboard.
• Multi-user experience. The large, horizontal, 30 inch display makes it easy for several people to gather and interact together with Microsoft Surface - providing a collaborative, face-to-face computing experience.
• Multi-touch. Microsoft Surface responds to many points of contact simultaneously - not just from one finger, as with a typical touch screen, but from dozens of contact points at once.
• Object recognition. Users can place physical objects on the screen to trigger different types of digital responses – providing for a multitude of applications and the transfer of digital content to mobile devices.

Microsoft Surface can bring the new light to the complex ‘customer solicitation’ process in the entire customer acquisition cycle, in retail banking and insurance industry. It can change the way customers learn, service and make decisions about the product. The way content is delivered in collaborative and explorative way, it can create the whole new positive perceptions about your product. Imagine you are sitting across you banking relationships manager or insurance advisor, browsing through product information, discussing various financial scenarios in a participative way, product comparisons. This technology has potential to revolutionize the entire customer experience.

I have often seen confused faces of customers during solicitation process. More often than not they are pretending to be understood, to be with you, but usually they are lost. I hope this technology brings new light for retail banking and insurance industry.