Every year begins with the promise of new technology – be it speech analytics, a new CRM, dialer, or even GenAI – fueling hopes of streamlined operations. Yet, we often find ourselves months into implementation without visible improvements in revenue.

But does enhancing revenue always have to be a lengthy process? Not necessarily.

Here are 3 straightforward practices you can implement right now to see a positive change in just a few weeks.

Before we delve deeper, ensure you're equipped with the right data tracking to enhance payment success.

Segmentation: Know your accounts

Handling hundreds of thousands of accounts means you can't afford to work in the dark. Effective segmentation ensures you understand your accounts and can strategize effectively to maximize recoveries.
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Here's a very simple segmentation strategy:

So, you classify your accounts based on three factors –

Current balance – Small, Medium, Large

Placement Age – New debt (0-60 days), Middle-aged debt (60-180 days), Old debt (180+ days)

Payment History – Consistent Payers, Inconsistent Payers, Non-Payers

And then combine these factors to create distinct segments, such as "Large Old Debts from Non-Payers" or "Medium New Debts from Consistent Payers". This clarity allows you to tailor strategies that are more likely to increase payments.

Prioritization: Optimize resource allocation

It's given that some accounts will liquidate faster and with less effort than others. Creating a prioritization matrix provides clear insights into where to focus your resources for maximum efficiency.

Example prioritization matrix:

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Expand this table based on your segments to develop targeted strategies for each group, ensuring optimal resource distribution.

Once you’re comfortable with this strategy, as a next step you can start creating more granular segments using demographic and interaction data. Then, target them with personalized messaging and frequency over digital channels.

Personalizing payment plans

A one-size-fits-all approach doesn't cut it for payment plans. Here’s how you can cater to diverse customer needs:

• Milestone-based incentives: Reward consistent on-time payments with balance reductions, like a 5% cut after six consecutive on-time payments, motivating long-term consistency.
  
  
• Seasonal plans: Acknowledge the financial ebbs and flows throughout the year by offering reduced payments leading up to holidays, balanced by higher payments when customers are more financially secure in Spring & Summer.
  
  
• Micro-payment options: Adapt to the gig economy by enabling small, frequent payments to accommodate daily or weekly incomes. This flexibility can significantly increase payment rates.

Prepare for the Future

By implementing these changes, you're not just tweaking your collection strategy; you're pivoting to a more customer-centric, adaptable approach. This shift can result in higher payment rates, better customer relationships, and a more robust collection strategy overall.

Interested in exploring these ideas further? Join us for a no-commitment call to discuss how these strategies can be tailored to your needs.