The multiple flavours of digitisation
Since the beginning of the year, collectAI has been able to reflect on two strong case studies where digitisation has delivered over 50% reduction in operating costs for large organisations from different industries. The clients had different starting points. While the bank I will introduce you to had phone led collections process, the utility company focused on postal letters. Both companies integrated into our white-label-solution helping them serve their customers digitally.
In the case of the utility company with a large number of claims, the only way to get hold of the customer was via post. This was not unsuccessful overall, however, needed a long time till the final repayment. Our digital process was able to increase it by a healthy 8% using SMS and email communication through to landing pages with integrated payment methods. The cost reduction was at an impressive 66%. Central to the improvement was the creation of seven workflows enabling benchmarking and testing throughout the migration.
The aforementioned bank started off by using phone calls as a standard reminder plus sending out bulk digital communications but without landing pages and without integrated payments. Their phone process included an average of 3 to 4 calls per claim leading to a much higher cost-per-claim but reflecting the higher average amount being collected (loan payments and card balances).
The cost reduction is even more significant at 88.6%, the baseline collection rate increased by 24% as well.
Both clients started from different industries and deployed a digitised and automated process with intelligence-led digital communications flowing through to a frictionless payment flow for the end customer.
What about the reaction of the end customer? The clients report back that their consumers are extremely happy with the mobile-friendly easy to use reminder process compared to letters and calls. So a real win-win and a very fast ROI in both cases.