The Proaxiom Collections Management System (CMS) manages customers from a credit perspective by monitoring a customer’s current balance and treating the customer according to Credit Management’s policy.
Every customer is assessed on a cyclic basis to determine whether they need monitoring. Often this cycle matches the billing cycle/monthly installment. The system entry criteria are set by you, and will usually be some definition of ‘becoming overdue’. For as long as the customer meets the system entry criteria, the system will automatically monitor the customer on a daily basis to determine whether a collections action needs to be initiated, or the customer status needs to be modified, for example, if a payment is received. You also set the system exit criteria, this will typically be when the customer has reduced their debt below a certain amount.
The Proaxiom solution is true management by exception. This is especially beneficial where manual intervention is required, as only those customers that require action have the action initiated. There is no manual checking of the customer required to determine eligibility for an action.
Characteristic benefits of the Proaxiom Collections Management System include:
- Reduced average debtor days
- Reduction in the total write off amount
- Reduced credit/collections head count
- Increased customer satisfaction
The Proaxiom Collections Management System treats customers rather than accounts. Regardless of whether debt is managed in the billing system at account level or customer level, CMS is designed to manage all collections actions by customer. This customer focus results in a customer receiving one collections action that summarises the overdue status for all overdue accounts, rather than receiving potentially many different actions as could happen in an account based system. Customer satisfaction is increased and collections costs decrease.
Customised Collections Strategies
The Collections Management System allows many different sequences of collections actions, or ‘Collections Paths’, to be established. Customers can then be directed to the path that most suits their profile. The most suitable path may be determined by attributes such as customer type (eg. business, consumer) and overdue status.
Thus the worse a customer is, the harsher collections path they will be assigned to. Integration with a Behavioural Assessment system will provide a high quality and powerful customer risk assessment. This attribute is very useful in assigning customers of like risk to similar collections strategies. The customised collections strategies allow harsher actions to be initiated sooner for ‘bad’ or high risk customers, while softer actions can be initiated at a later point for ‘good’ or low risk customers. This has the benefits of saving on collections costs for those ‘good’ customers that will pay regardless of actions performed, and collecting debt sooner from the ‘bad’ customers. Customer satisfaction is increased for the ‘good’ customers that are being treated in a more personalised fashion.
It may not be appropriate to initiate all actions automatically for some customers, such as large corporates or particularly sensitive customers. Proaxioms CMS provides the facility to treat these customers manually by assigning them to a manual collections path. This manual path can then be monitored and actions be initiated that are suitable to the customer.
As there is no standard collections path that a customer will always receive, it becomes difficult for a customer to predict the sequence and timing of collections actions. This will reduce the instances of customers leaving payment until just before the harsh actions are scheduled to occur.
Suite 20/21, 225 Wicksteed Terrace
PO Box 4169 Whanganui
14 Lombard Street
Wellington, New Zealand
Tel: +64 6 281 3483
Tel: +61 2 8213 6271
PO Box 11 - 591
Redditch, B98 9ZA
Tel: +44 1527 591383
Fax: +44 1527 591383