Steve was engaged to create a credit retrieval system that halted the growing debt owed to the company by SME and residential customers. One reason that such a large debt existed was the unsophisticated and indiscriminate collection method – habitual late payers received the same treatment as those with previously good payment histories. This one-size-fits-all situation treated valuable customers too harshly and persistently poor customers too leniently – minimising revenue from each and focusing resource in the wrong areas.
Steve’s proposed segmentation project separated customers into different tiers before any non-payment occurred – ensuring the collection process they experienced reflected their credit history. One vital ingredient for a project of this scale was improved data; and lots of it. After concluding that the previous system created inaccurate reports from the sparse existing data, he set about implementing a new one. His new analytical model shared all the customer information compiled by the operational credit team, providing rich information from which customer profiles could be made.
Steve’s new data capture process combined with a more personal customer approach exceeded expectations: it has significantly reduced debt for the first two quarters since inception. To ensure that the department do not fall back into old habits he has created an ongoing training plan and hired suitably qualified staff to fill previously identified skills gaps. This legacy ensures that all future business requirements will be met.
It’s why the Head of Credit said, “Steve really knows the credit industry, he is an expert in that. He has grabbed hold of our agenda, lifted the ability of the team and bought some real structure to MI.”
