Does your company have an analytics strategy in place? Ignoring the power of data could see your company falling behind its competitors.
As an industry that deals with large volumes of customers, the collections space needs to have some sort of data intelligence in place analysing and extracting data. The increasing usage of data in collections is allowing companies to better understand client behaviour.
One potential data intelligence application in the collections space could be the ability to notice which customer profiles are more likely to pay outstanding debts, and devoting more resources to targeting those who fit the profile. Another example would to be to identify which collection methodologies and channels customers tend to respond to most positively.
Data analytics allow for greater personalisation when it comes to dealing with customers. Instead of treating every customer the same, companies can use data insights to tailor their approaches for individuals.
There are many aspects to consider when implementing a data analytics strategy. The first is how up-to-date the information will be, as analytics depend greatly on accuracy.
Identifying patterns that can help streamline your business practices also requires you to look at the right kinds of data. This calls for either a significant investment in business intelligence or seeking out business process outsourcers that already have the resources in place.
Finally, there are challenges around data security. Failing to account for legislation such as the Protection of Personal Information Act, especially when outsourcing operations to a third party, could land your company in hot water. These challenges can be overcome by dealing with a reputable outsourcing partner.
The benefits far outweigh the drawbacks, particularly as data analytics become more commonplace. Data intelligence is set to play an even bigger role in the collections industry in the future, and companies should start preparing now.