Collections Receivables

How Can Organizations Manage their Collections Efficiently

Companies in India face a number of organizational challenges that get in the way of effectively managing their collections receivables.

Because many of these processes are still being developed and fine-tuned, there are many challenges to work through, which include a lack of efficient infrastructure, limited capital, and outdated technology. Not surprisingly, these challenges also get in the way of overall operations and result in a disturbed cash flow.

Small and Medium Enterprises (SMEs) are also impacted by these challenges; the ambient environment for SMEs can also be prohibitive to their growth, especially because loans and approvals are not easy to come by.

When SMEs turn to private lenders, they’re often faced with high interest rates, making the payback process critical and cumbersome in the face of outstanding receivables.

It’s easy for this to become a vicious cycle for organizations of all sizes.

Common Collections Mistakes made by SMEs

Let’s say we have a database of 100 clients with payments due. Of these 100 clients, 70 always make payments on time. 20 of these clients might be habitually late with payments and 10 of these have gone into deep lapse, i.e. a customer base that has become completely unresponsive with significant payment delays (90 days or more).

“A very important concept to understand is that all customers are not cut from the same cloth” says Aditya Bhushan, Managing Director at ATS. “If the loyalists are approached with the same tactics as the stragglers, you risk delaying your payments even further. In 17 years, we’ve seen this occur many times.”

A delayed payment loop is definitely not the outcome we need. But there is a way to manage the collections process more efficiently, and it’s rooted in understanding your customer’s payment behaviour patterns, dispute resolution procedures, efficient follow-up and escalation, proper monitoring.

Can a Collections Receivable Backlog be Prevented?

With a combination of intelligent segmentation, analytics, and timely outreach, collections receivables backlogs can be prevented.

  1. Segment Your Data
    Segmenting and correctly labeling your data is a crucial first step. If 70% of your customers pay on time with minimal reminders – even better if they’re on autopay! – then we recommend you don’t disturb them with repetitive or unnecessary messaging.
     
  2. Identify Risk

    Strong analytics and experience are important for identifying risk. Once you have a window into an established payment or behaviour pattern – e.g. some people avoid calls from collectors – you can determine the risk of non-payment.

    This is the point where we typically step in for our clients and recommend next steps. When we identify the segment perpetually in deep lapse, our experts look into each case selectively and approach towards a negotiated settlement.

  3. Prioritize Human Intervention

    A phone call or an automated message? An email or a text? One message or a series of reminders until the payment comes in? Once you’ve segmented your target audience and identified the risk, you can prioritize how much human intervention a particular customer will need.

    In the example we’ve mentioned above, 80% of the clients make timely or slightly overdue payments. In our experience, these clients do not require special intervention for payment reminders. Moreover, the time and effort saved here can be invested into tougher accounts in order to improve the overall collections efficacy.

  4. Implement Digital Outreach

    Once you’ve decided your mode of communication (text, email, phone call), you must automate and digitize your outreach process. We’ve built processes and software for our clients that allow CRMs to integrate with emails and diallers to initiate payback. Most often, a full human resource is not required for this outreach.  

A digitized and analytics-based follow-up isn’t just the way forward; it’s the most efficient and economical way forward. Talk to us about how we can set up this process for you.

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The Customer Relationship Management (CRM) Platform by ATS

We like taking care of the finer details at ATS Services, especially when it comes to delivering technology-driven, end-to-end solutions, like customer relationship management.

When we built our technology platform, we wanted to look at managing all aspects of customer engagements that BFSI (Banking and Financial services) clients could need. The CRM can be used to manage customer prospecting, onboarding, ongoing revenue management activities – cross-sell, upsell etc. and collections.  

We also wanted a CRM that could be customized with ease to fit into legacy systems – as well it should because we used it in-house first! We also wanted a CRM that could function independent of system and device requirements.

So we went ahead and developed it. Based on real needs and built for actual, secure, and easy usability, the CRM developed by ATS can be tailored to fit the needs of an organization instead of requiring a systemic change.

We’ve built a whole host of features that make our CRM an engaging and easy tool to use. Here’s what you can expect.

CRM by ATS – User Benefits

  • Flexible Payment Options Outright purchase with annual maintenance fees or a monthly subscription fee under a SaaS (Software as a Service) arrangement, we’re happy to accommodate you.
  • Platform Agnostic The CRM can be hosted on the cloud (or locally, if needed) to eliminate dependence and investment in upgrading technology.
  • Compliant with ISO 270001 data security standards
  • Open source environment the system while meeting the highest security standards can also be deployed in Linux environment – thus significantly lowering total cost of ownership.
  • Flexible Usability Options Since our CRM can be hosted on the cloud or locally as a stand-alone solution or as part of a whole, it can be used as a platform or service. Regardless, of the hosting options you pick, you can still opt to pay a monthly fee if you prefer.
  • Customizable ATS Services has worked on over 200 different processes of BFSI clients and we are sure you will find a CRM flavor that will meet your requirement. However, in case you need a version suited specially for your needs we are happy to customize.

CRM by ATS: Product Features

CRM

We loaded our CRM with the features WE wanted to use initially. Turns out, we really love our toys at ATS. And through rigorous, real-time testing done on actual accounts, we can can stand by how well they work.

To learn more about the CRM, keep reading below. Get in touch with us if you’d like to get a quote. We’ll be thrilled to have a chat!

  • Data Import Allows upload of data (customer/account information of relevant accounts) for activities to be performed by the team. This module can also be  integrated with legacy systems in use such a Loan Management System or a lead management system.
  • Account Management This module provides facility to allocate data to specific queues for collection calling. An agent has options to escalate the case from their queue to their supervisor queue.
  • Queue Management Create various queues such as agent specific queues, strategy based queue or generic queues using the account management module. Added feature for pre-decided account prioritization.
  • Call Handling See a 360-degree view of the customer, i.e. all the relevant information like demographic details, product information, relationship detail along with contact history and previous-call comments.In case of predictive dialing through dialer this customer screen pops up automatically after CRM is integrated with dialer.This screen allows agents to take notes of the conversation with client and save all relevant information acquired during a conversation such as change in address, phone, customer complaints / requests etc. Agent also dispose the call on this screen with an appropriate call disposition code.
  • Integration with Multiple Contact Mediums Choice of integration with multiple dialer calling modes which include preview, predictive, and manual dialing. The CRM is also integrated with other communication mediums such as SMS and Emails so that agents can send templated emails and SMSs to the customer from this screen.
  • User Management Administrators can manage agents, create/edit/delete user records, configure the user profile, reset / change passwords, etc.
  • Response Logging and Track A complete trail of all contacts and corresponding outcomes (connected /not connected/ disposition code etc.) is maintained for each account along with follow-up date and time for regular follow-up.
  • Knowledge Base Integrated knowledge base for common questions, product features and tele-calling scripts is available for reference during customer conversation.
  • Controlled Access Each user has a pre-defined role and unique login rights to perform specific activities.
  • Real-Time Reports Observe individual as well as team performance real time in CRM.
  • Web-Based Our CRM is web-based and thoroughly tested on most internet browsers at different resolutions.
  • Search Facility Search customer records based on customer name, phone number, unique identification number etc.
  • Analytics Support Maintain a complete contact history with specific remarks, all demographic information and customer segments; this is used as a key analytical input for planning future campaigns.
  • Automated Dialing Our dialer is integrated with our CRM as an extended module. The dialer allows you to choose between predictive, preview and manual dialing modes. As shared earlier our CRM and dialer both can be used separately as well as in integration.

 

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