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Naeem Abraham | 22 February, 2024

The power of customer data at each stage of collections

Customer data is king when it comes to your customer journey through collections. It helps you paint a clear picture of the past, present and future of their finances to support your strategies. And by harnessing it properly, you can shape their future to be one of financial stability.

In this article, we explore the power of customer data in collections from a podcast conversation between Christina Fisher (Manager, Growth Marketing) of C&R Software and Carrie Coker-Aivaliotis (Sr. Director, Market Planning - Collections) of LexisNexis Risk Solutions.

Data integrity and quality are the building blocks of collections strategies

High-quality data is what provides you and your team with context and visibility of your customers and their situation. Key data points like credit history, employment status and outstanding balance are the building blocks of personalized collections strategies that lead to a resolution. To achieve this, these data points need to be up-to-date and accurately represent the situation of the customer.

Say you have a customer that very recently lost their job. This needs to be updated into your systems ASAP. If it isn’t, then you risk providing them with inaccurate repayment offers that could potentially create more problems. This is why the integrity and quality of customer data are the foundation of successful collections strategies that enhance performance.

Reliable customer data can help at each stage of the collections journey

Pre-delinquency detection

By looking at and analyzing customer data against historical trends, you can identify whether an account is showcasing the same behaviors as one that went delinquent in the past. This gives you the knowledge to avoid delinquency all together by contacting them and providing the right support before it’s too late.

Personalized collections strategies

High-quality customer data is the foundation of personalized collections strategies. With reliable data covering each aspect of your customer’s finances and situation, you can assign treatment paths that are relevant to their specific situation. This directly enhances collections performance and creates a customer-centric experience at the same time.

Tackling upcoming challenges

By having proactive communication and data hygiene with your customers, you can tackle upcoming challenges before they create problems. A clear example is the restart of federal student loans. With a reliable foundation of customer data, you can reach out to the accounts that will be affected by this to formulate a mutually beneficial solution.

Configurable platforms make data management simple

Configurable collections platforms are a holistic interface to help you record, manage and analyze your customer data. They can integrate with a number of systems to make it easier, faster and less effort for you and your team.

  • Real-time data-flows - Data is recorded and stored in a centralized system instantaneously, making sure it’s always up-to-date and of high quality.
  • Analytics and algorithms - Automatically compare customer data to historical models to provide insight to build effective strategies. You can then operationalize algorithms to assign these strategies to save time for your team.
  • AI and automation - Use unique AI tools to automate manual data management tasks, eliminate the risk of human error, and save time for your team to dedicate towards customer support. This greatly improves data hygiene too.

Harness the power of data with C&R Software.

It’s clear that data is king when it comes to customer management in collections. But it’s easier said than done when it comes to recording, managing and harnessing this data to enhance collections performance.

At C&R Software, our industry leading Debt Manager makes managing customer data simple. Real-time data-flows, AI integrations and centralized systems mean less work for your team while enhancing the customer experience.

To find out more details about the conversation between Christina and Carrie, watch the podcast here. To find out more about how Debt Manager can help you build positive collections experiences, contact a member of our team today.

 Naeem Abraham
About the author

Naeem Abraham

Naeem Abraham is leading the charge to implement our decision management tool: FitLogic. With prior experience at a top EMEA bank, Naeem’s expertise lies in credit management, data-driven decisioning, and utilizing AI/ML to improve collections performance.

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