Collection Processes Optimization
The client had a vital need to re-balance its receivable portfolio. On one hand, its debt recovery rate was 3.4 percent, compared to 19 percent achieved by its competitors. On the other hand, the commissions charged by the client’s other collection agencies were as high as 50 percent of the collected amount, which resulted in high operational costs and a lower overall collection rate. Profit margins using them were dented. The client intended to optimize its final debt collection processes to improve recovery of receivables. The client also wanted to formulate focused debt management strategies for different customer segments to manage customer writeoffs more effectively and decrease operational costs.
One of the leading produce distributors on the East Coast
The client wanted to optimize collection processes to improve recovery and create strategies to manage customer write-offs more effectively
RHK transformed the client’s collections process by leveraging analytics, consumer behavior and enhancing the customer interaction strategy.
RHK focused on transforming the client’s collections process by embedding predictive analytics and making changes to the customer interaction strategy. Key aspects of the RHK Solution:
Customer Interaction Strategy
The client achieved a 37 per cent improvement in debt collection in three months.
By deploying predictive analytics, RHK Recovery Group was able to fulfill the client’s business objectives and helped achieve the following outcomes: