CHOICE Archos Dramatically Improves Debt Collections
The Archos module of CHOICE Revenue Intelligence™ groups customers into clusters by propensity to react positively to varying collection techniques, accelerating the recovery of past-due revenues while minimizing write-offs.
The typical utility procedure for handling consumer payment delays is to use dunning rules that are common to all customers in each segment. However, not all people react the same to a “one size fits all” approach, and experience indicates the behavior of a defaulted customer can be influenced positively when varying factors are introduced into the collection process. Factors like how the utility approaches the customer, the value and age of debt, and other group characteristics can lead to new dunning rules to speed up collections. That’s where CHOICE helps.
CHOICE data scientists have developed the Archos module of Revenue Intelligence™ as a proven method to group customers in clusters according to varying characteristics unique to each group. These characteristics provide insights on how each cluster will react to various collection actions, which helps define different dunning rules for each cluster.
The CHOICE Revenue Intelligence™ Archos module:
- Uses clustering algorithms to create segments according to customers’ likeliness to respond to varying combination of collection activities
- Algorithms take into consideration prioritization of the more costly actions like disconnections
- Insightful cluster responses provide new dunning rules to accelerate the collection process, getting maximum revenue in the shortest period of time
- Dramatically impacts write-off ratios
- Delivers proven ROI results within months of activation and continuously evolves as new clusters are identified