Debt Management
Don't wait until it's too late! Reducing bad-debts must be a top priority for any lending business. We believe that it is too important to wait until the customer actually defaults before you act. There are steps that we recommend you put in place throughout the customer lifecycle to stop customers going into arrears in the first place. We can also advise on clever, cost-effective contact strategies using the latest telecoms technology and customer management approaches that recognise the underlying reason for default, not just the amount. With this expertise, Hitachi Consulting is ideally placed to help you make a quick and significant reduction to your provision volumes.
Hitachi Consulting's approach includes:
- Debt Management Diagnostic, identifying the extent, root causes, and current approaches to bad debt:
- diagnose bad debt performance levers / drivers
- benchmark debt management approach
- analyse current and potential customer revenue and losses
- Debt Segmentation Definition:
- identify target customers for debt management activity by risk tier
- analyse customer reasons for debt, attitudes, behaviour and satisfaction (typically using primary research)
- define customer segments at different lifecycle points
- Debt Management Proposition Design, including the design of debt management strategies, for example:
- welcome call and customer management
- pre-delinquency management
- post-default contact strategy
- agent dialogue
and supporting approaches for:
- arrears MI dashboard
- customer management strategies
- communication systems and strategies
- agent scripts and training
- new customer data resources
- arrears management support systems
- agent performance management systems
- define test structure (if required), scope, duration and success criteria
- plan roll out of new arrears management proposition to customers
- define and implement benefits measurement and management plan
- review success of tests / roll out and refine / redesign as necessary