learn collect excel private sector collections best practices what are they? do they transfer to the...

COLLECTPrivate Sector Collections

Best PracticesWhat Are They?

Do They Transfer to the Public Sector?

Jeffrey ClevelandSenior Director, Strategic Government Markets

LexisNexis

COLLECT Introductions

PLEASE STAND UPPLEASE STAND UP

COLLECT Business Model

Private Sector Focus: RISK MANAGEMENT

• “How much money can I keep from losing?”

• “How much money am I willing to lose to hit my revenue and/or profit targets?”

Public Sector Focus: REWARD MANAGEMENT

• “How much money can I bring in through the door?”

COLLECTCollections Best Practices

• People

• Process

• Technology

COLLECTCollections Best Practices

Cardmembers Revenue Losses Profit

43.3M $10.4B $2.9B $1.8B

36.5M $8.9B $2.4B $2.1B

55.0M $13.4B $1.8B $2.8B

A sense of SCALE…A sense of SCALE…

COLLECT

PEOPLEprocess

technology

COLLECT

PEOPLE:Collections Organization Design

• Policy & Strategy– Quantitative– Analytics

• Execution– Time-based– Risk-based

COLLECT

PEOPLE:Collector Skill Sets

• Personable• Ability to establish rapport• Empathetic• Flexible but in control• Problem solver• High rejection rate

Collections is a SALES job.Collections is a SALES job.

COLLECT

PEOPLE:Measure and Manage

Typical measures• Average call handle time• $ collected• Promise-to-pay rate• Kept promise rate

Top 25%

2nd Quartile

3rd Quartile

Bottom 25%

COLLECT

PEOPLE:Internal vs. External

COSTCOST

COLLECT

PEOPLE:Summary

• Scalability• Skill sets• Organizational mindset, priorities and focus• Production measures• Understanding cost structures

Private PublicPrivate Public

COLLECT

peoplePROCESStechnology

COLLECT

PROCESS:Collection Strategies

• Risk segmentation: One size does not fit all

• Use of quantitative analytics to rank order accounts– Behavior scores

COLLECT

PROCESS:Collection Tactics

• Risk-differentiated treatment strategies

HIGH risk

LOW risk

COLLECT

PROCESS:Collections Workflow

Alignment with organization• Early stage / late stage• Low risk / high risk• Inbound / outbound

COLLECT

PROCESS:Summary

• Scalability• Propensity to pay (vs. not pay): Behavior scoring• One size does not fit all• Treatment strategy design

Private PublicPrivate Public

COLLECT

peopleprocess

TECHNOLOGY

COLLECT

TECHNOLOGY:Decision Management

Automated decisioning systems• Large scale• High volume• Millions of data points• Test and learn capabilities

COLLECT

TECHNOLOGY:Workflow Management

Automated collections systems• Flow of accounts from step to step• Human intervention only when needed

COLLECT

TECHNOLOGY:Ancillary Services

• Payment processing• Skip tracking• Data enrichment• Scoring models

COLLECT

TECHNOLOGY:Summary

• Scalability• Third-party expertise• Cost/benefit-based business cases

Private PublicPrivate Public

COLLECTPrivate Sector Collections

Best PracticesWhat Are They?

Do They Transfer to the Public Sector?Jeffrey Cleveland

Senior Director, Strategic Government MarketsLexisNexis

jeffrey.cleveland@lexisnexis.com(202) 857-8262