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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…
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PEOPLEprocess
technology
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PEOPLE:Collections Organization Design
• Policy & Strategy– Quantitative– Analytics
• Execution– Time-based– Risk-based
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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.
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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%
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PEOPLE:Internal vs. External
COSTCOST
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PEOPLE:Summary
• Scalability• Skill sets• Organizational mindset, priorities and focus• Production measures• Understanding cost structures
Private PublicPrivate Public
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peoplePROCESStechnology
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PROCESS:Collection Strategies
• Risk segmentation: One size does not fit all
• Use of quantitative analytics to rank order accounts– Behavior scores
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PROCESS:Collection Tactics
• Risk-differentiated treatment strategies
HIGH risk
LOW risk
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PROCESS:Collections Workflow
Alignment with organization• Early stage / late stage• Low risk / high risk• Inbound / outbound
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PROCESS:Summary
• Scalability• Propensity to pay (vs. not pay): Behavior scoring• One size does not fit all• Treatment strategy design
Private PublicPrivate Public
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peopleprocess
TECHNOLOGY
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TECHNOLOGY:Decision Management
Automated decisioning systems• Large scale• High volume• Millions of data points• Test and learn capabilities
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TECHNOLOGY:Workflow Management
Automated collections systems• Flow of accounts from step to step• Human intervention only when needed
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TECHNOLOGY:Ancillary Services
• Payment processing• Skip tracking• Data enrichment• Scoring models
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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
[email protected](202) 857-8262