Every so often in the business world a wave comes along, a new innovation, trend or competitive advantage that everyone wants to catch.
It’s the new revolution that everyone follows. Many gain their competitive advantage, others become disillusioned with the hype, realising that while it works for other businesses it may not work for theirs.
Today’s wave is Data, but this time it’s different. This wave takes everyone safely back to shore.
We are in the midst of one of the most challenging periods the Collections & Recoveries (C&R) industry has faced. C&R functions are facing increasing internal pressure to manage costs and increase efficiency, and that’s before we take into account external scrutiny from regulators, customers, and stakeholders.
During periods of change winners and losers emerge, those that thrive and those that struggle to survive. What is going to distinguish the winners from the losers during this period is generating insight and actions based on data and analytics.
Our industry is going through an evolutionary process. Organisations are grasping the opportunity to move their operation from a traditional base (generic communications that lead to a ‘one-size fits all’ customer lifecycle) through to an aspirational unit (increased targeting and layered treatments) and some to a truly exceptional operation (sophisticated analytical approach to ensure correct treatment and outcomes based on circumstances).
Just as each consumer is unique, every individual debtor is equally unique and treating everyone the same is both risky (from a compliance and regulatory perspective) and wasteful. Data allows us to see and understand the debtor/consumer long before any work on the account occurs. Leveraging data to drive intelligent action is the way forward.
Data and insightful analytics enable you to understand, pre-empt and manage customer behaviour. Organisations that know how to store, organise and analyse their data will outperform their peers in collections and recoveries, and provide real competitive advantage to their business.
And the great thing is most of the key data is readily available in-house, particularly when you know what to look for.
‘Know your customer’ is a common saying in business and with insightful data and analytics you can really prove that you know your customer.