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Impact Data

Collection Agency Service Provider Non Profit Debt Buyer Credit Grantor Direct Marketer Submit Data File

Residential Service Provider

residential Our client serviced 20 million residential customers who often lagged behind in their payments. When combined with their commercial service, the Days Sales Outstanding (DSO) was 43. Customers were billed monthly, with a centralized receivables management area triggering a past-due notice at 15 days. By day 30, 90 percent of accounts were outsourced to contingency-fee collection agencies. There was no process used to identify which accounts were outsourced and which remained in house. No credit bureau score or any risk score was associated with these accounts.
Impact Data agreed to take one market consisting of more than 350,000 accounts to demonstrate the power of the Impact segmentation model. The client provided a 15-month payment history in addition to the Zip code on these accounts.
segment-rsp

Opportunities Identified

From this data we were able to observe a clear trend: customers that had the highest propensity to perform had the highest variance between percentage of total accounts and percentage of total payments. Historically our analysis has shown that there is a close correlation to percentage of total accounts to percentage of total payments when the billed amount is the same across all segments. This is a clear indication that efforts were not being applied consistently.
The client’s services are not an expensive payment and is often overlooked without any repercussion to the customer. The treatment strategy used on accounts identified in segment 1 was either not compelling to these customers or was not allowing an easy method to pay. The significant delta between this metric in segment 1 identified an annual opportunity of over $58 million dollars in additional revenue on this one market of 51.

Strategies Implemented

The client has made significant progress in execution of a strategy to offer an ACH and web-based payment solution and to adjust the verbiage of the initial notice to compel the customer to make payment on or before the due date. In addition the Impact segment will be used as a basis for their outsource collection placement strategy with specific work standards that must be maintained by their contingency vendors to reduce their DSO.
What can Impact Data do for your residential service provider? We’ll prove our performance before we start with a sample of your data. Contact us to get started improving your market share, reducing operational expenses and adding to your bottom line. Or, register to receive our free eBook and learn more about the ways Impact Data can transform profitability through data intelligence.

Submit a sample data file to see how Impact Data can point you to your most profitable customers