Working Smarter with Business Intelligence

Julie Melton

Easy access to accurate data helps managers make sound decisions, identify new opportunities, employ solid business strategies, and better compete in today’s collection arena. But there’s more to acquiring quality data than meets the eye.

Business Intelligence (BI) has become vital for many collection operations looking to improve efficiency and return on investment. Using specialized technology, BI tools can transform raw data into meaningful and useful information with little effort from you, the end user. As a result, you can more easily identify those markets, clients, accounts, collectors, work strate­gies, and business strategies where application of your people, processes and technology will generate the best possible return on investment.

Putting Scoring Models to Work for You

Knowing an account’s ability and willingness to pay their debts can be a guessing game without the right Business Intelligence tools. That’s why your solution should integrate scoring models and account profiling, along with reports, dashboards and data automation.

The account profiling features available today combine industry, agency, and account-specific debt recovery scoring models to provide you with key findings about which accounts are likely to pay, and which strategies to apply. All this adds up to a decrease in time to collect, a decrease in costs associated with collections, an increase in overall profit and proven ROI.

The best solutions include scoring models that are developed through analysis of social, economic, demographic, and debtor account activity information. These scoring models provide more than a credit score — they provide a recovery score, which is highly weighted by recovery data indicators and highly predictive of a debtor’s ability and willingness to pay a given debt. Account Profiling can involve a dozen different scores, such as:

• Probability Score (indicates the likelihood of an account to pay something based on demographics and internal data)

• Statistical Recovery Amount Score

• Propensity Score

• Medical Charity Score (identifies charity write-off through: average Household size, Median Household income, Federal Poverty Guidelines)

• Rank Order Score

• Late Stage Score

• Packet Specific Score

• Medal Score (helps identify the value of accounts being worked and categorizes each as Platinum, Gold, Silver and Bronze)

These scores are more than stats – they give you the power to predict profitability. Equipped with Recovery Scores you’ll likely be able to identify which 50% of accounts assigned will generate 85% of the dollars your team recovers.

Six Key Questions to Ask Yourself:

1. Are you currently implementing analytical tools to improve the effectiveness of your decision making?

2. What do you do with the information you are receiving?

3. Did you know that the data you acquire can help you reduce risk, as well as improve productivity?

4. Can you forecast payment probabilities and identify which accounts are most likely to generate revenue?

5. Do you know how to determine the best collector to work an account and which accounts are not worth working at all?

6. Do you imagine a Return on Investment where reduced costs, increased collections, strategic business decisions and increased capacity are all within reach?

Based on the answers to the questions above and a review of your current processes, determine if the tools you have in place right now are adequate. If not, gather more information and consider upgrading your system. Once your BI solution is in place, remember to measure successes and failures along the way. Identify what is working, and change course as needed.

With easier access to greater knowledge through better data, your people and organization can work more efficiently and realize the proven ROI you require in today’s competitive collection environment.

Julie A. Melton serves as Columbia Ultimate‘s Director of Marketing, and has been with the company since 2007.  She received a Bachelor of Science in Journalism from the University of Oregon and a Master of Business Administration from George Fox University. Additionally, Melton was recently elected as an internal affiliate division representative to the Council of Delegates for ACA International and serves on the California Association of Collectors Vendor Committee.