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COLLECT Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director, Strategic Government Markets LexisNexis

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Page 1: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECTPrivate Sector Collections

Best PracticesWhat Are They?

Do They Transfer to the Public Sector?

Jeffrey ClevelandSenior Director, Strategic Government Markets

LexisNexis

Page 2: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT Introductions

PLEASE STAND UPPLEASE STAND UP

Page 3: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

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?”

Page 4: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECTCollections Best Practices

• People

• Process

• Technology

Page 5: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

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…

Page 6: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

PEOPLEprocess

technology

Page 7: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

PEOPLE:Collections Organization Design

• Policy & Strategy– Quantitative– Analytics

• Execution– Time-based– Risk-based

Page 8: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

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.

Page 9: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

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%

Page 10: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

PEOPLE:Internal vs. External

COSTCOST

Page 11: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

PEOPLE:Summary

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

Private PublicPrivate Public

Page 12: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

peoplePROCESStechnology

Page 13: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

PROCESS:Collection Strategies

• Risk segmentation: One size does not fit all

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

Page 14: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

PROCESS:Collection Tactics

• Risk-differentiated treatment strategies

HIGH risk

LOW risk

Page 15: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

PROCESS:Collections Workflow

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

Page 16: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

PROCESS:Summary

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

Private PublicPrivate Public

Page 17: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

peopleprocess

TECHNOLOGY

Page 18: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

TECHNOLOGY:Decision Management

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

Page 19: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

TECHNOLOGY:Workflow Management

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

Page 20: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

TECHNOLOGY:Ancillary Services

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

Page 21: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECT

TECHNOLOGY:Summary

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

Private PublicPrivate Public

Page 22: LEARN COLLECT EXCEL Private Sector Collections Best Practices What Are They? Do They Transfer to the Public Sector? Jeffrey Cleveland Senior Director,

COLLECTPrivate Sector Collections

Best PracticesWhat Are They?

Do They Transfer to the Public Sector?Jeffrey Cleveland

Senior Director, Strategic Government MarketsLexisNexis

[email protected](202) 857-8262