The business challenge
The dynamic telecommunications market is seeing an almost unprecedented level of customer delinquency.
Pressure to grow and retain the subscriber base, combined with higher bills resulting from the convergence of services, as well as growing use of third party content, mean that telecommunications operators are facing escalating write-off amounts.
This has led to increased pressure on the debt management operation to recover these outstanding amounts.
However, in a highly competitive environment, it is easy for customers to switch between suppliers and leave debts behind them, meaning a close management of the customer relationship during collections is essential, to ensure retention and reduce churn.
The answer
A next generation customer debt management solution specifically designed for telecommunications providers.
Experian’s proposition for debt management in telecommunications places intelligent customer segmentation at the heart of the processes and activities to drive dynamic, tailored collections strategies for each delinquent customer.
Customers are finely segmented to create an accurate profile and, using behavioural scoring, each customer is assigned a risk score, which is used throughout the collections activities to drive the most appropriate strategy.
Using the profile, collections actions can be effectively prioritised, such as leaving habitual late payers to self-cure and focusing resources on high risk, high value customers.
Both automatic and manual provisioning can be achieved, so that suspension, termination and re-activation, barring and debarring and throttling and download restrictions can easily be applied to both encourage and reward payments.
With a large volume of lower value debts, automation can have a significant impact on operational costs. The system automates collections activities to minimise manual intervention, and enables staff to concentrate on higher value, higher risk collections.
Operators can benefit from:
- Minimising collections costs and time to collect
- Increasing cash flow
- Improving recovery rates and reduce bad debt write-offs
- Improving staff productivity and focus collections resources
- Protecting future revenue streams and reduce churn
Testimonial
"The South African mobile market is increasingly competitive. Debt Management from Experian will enable us to improve the way we interact with customers behind on their bills. By treating them in a more thoughtful and personalised way we hope to be able to rehabilitate, retain and attract new customers who appreciate good service.”
Vodacom, South African telecommunications operator (quoted in press release June 2008)
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