Driving Cost-Effective Recoveries through Digital Solutions
Client Overview: A prominent financial services company seeking to enhance their recovery rates while reducing operational costs through digital transformation.
Objective: To implement digital communication and servicing channels that optimize recoveries and reduce costs, guided by a machine learning (ML) based decision engine.
Challenges
High costs associated with traditional recovery methods.
Limited utilization of digital channels for customer communication and servicing.
Inefficient channel selection resulting in sub-optimal recovery rates.
Solution:
ROS Solutions introduced a suite of digital communication and servicing channels, including web portals, email, SMS, Interactive Voice Assistant (IVA), and chat. These channels were integrated with a machine learning-based decision engine to optimize channel selection and drive recoveries efficiently.
Implementation:
Digital Channels Integration:
- Web Portal: Provided a user-friendly platform for customers to manage their accounts and make payments.
- Email and SMS: Enabled timely and effective communication with customers.
- IVA and Chat: Offered automated, interactive support for customer inquiries and payments.
Machine Learning Decision Engine:
- Channel Mix Optimization: Implemented an ML-based decision engine to determine the best mix of communication channels.
- Account ROI Consideration: Utilized account ROI data to prioritize high-value accounts.
- Expected Response Score: Leveraged historical data to predict the most effective channel for each account, optimizing responses and recoveries.
Operational Changes:
- Adjusted communication strategies based on the ML-driven channel selection.
- Enhanced customer engagement through personalized and timely digital interactions.
- Reduced reliance on traditional recovery methods, lowering overall costs.
Results:
- Increased Digital Recoveries: Digital channels now drive 20% of total recoveries.
- Cost Reduction: Achieved a 35% lower cost for recoveries through digital channels.
Client Testimonial:
“Partnering with ROS Solutions for our digital transformation has been a game-changer. The implementation of digital communication channels and the ML decision engine has significantly improved our recovery rates while reducing costs. The ability to strategically select the best channel for each account has made our collection efforts more efficient and effective.” – VP of Collections, Financial Services Company
Conclusion:
By integrating advanced digital communication channels and a machine learning-based decision engine, ROS Solutions empowered the client to enhance their recovery processes, achieving substantial cost savings and improved recovery rates. This case study highlights the transformative impact of digital solutions and data-driven decision-making in optimizing financial operations.