We’ve written a number of posts suggesting how telecom and cable providers can use reliable consumer credit data to improve acquisition, prospecting, retention and risk mitigation, but we haven’t yet covered collections. So here is the first in what will probably be several collections-related entries. Please let us know what you think.
What’s in your data mix?
As you know, the ranks of “skips” or delinquent accounts have grown considerably over the past few years. This phenomenon has compelled many telecom and cable companies to reevaluate the quality and use of their skip tracing data. What they’ve discovered is that contact data alone—current address, previous addresses, land line and cell phone numbers—may not be enough to recover lost payments.
Which brings us to the missing ingredient.
Reliable consumer credit data
Combining fresh contact data AND reliable consumer credit data enables you to recapture more funds from more delinquent accounts. Adding credit history to the mix broadens your view of consumers’ overall financial health, allowing you easily distinguish between those who can pay and those who can’t.
What the data can reveal
Assuming your consumer credit data comes from a reputable, knowledgeable source, you’ll be able to immediately learn a lot about your customers’ behaviors and circumstances, including:
- Attempts to open a new account while they’re still overdue with you
- Recently declared bankruptcies
- Once delinquent customers who now have the ability to pay
Tying in “triggers”
Some communications providers use collection tools called “triggers.” When tied to a consumer credit report, triggers alert you to new information, including cell or landline number, address, employer, or changes in financial status, such as when bankcard funds become newly available.
Quality credit data + tools like triggers + a reliable data partner = a surefire recipe for collections success.
Collections not your focus? Check out the post on “Using Data Intelligence to Reduce Churn, Build Loyalty and Keep the Right Customers.”