Customer bill payment analysis and proactive management
Business problem
With the increase in the types and number of services, even well-paying customers can easily slip into non-payment if the payment process is not properly managed by the service provider after the bill has been sent.
At the same time, customers who are difficult to pay are not completely unaware of the need to pay their bills, and the service provider can, with proper management, ensure that their bill is one of the few that are paid.
Business objective
The natural objective is for the service provider to ensure that as many of the invoices it issues are paid as possible.
However, the service provider should also avoid unnecessary customer irritation, as this can easily have the opposite effect of churning customers.
Solution
To analyse and manage customer behaviour, it is essential to collect relevant data about the customer that is available within the company.
Using this data, Machine Learning algorithms can help you assess expected willingness to pay, determine the required payment incentives and schedule incentive actions.
The results of the analytics can be used to drive the appropriate automation by creating customised dashboards to support the sales/credit monitoring process, but also to support the management of payment behaviour by customer service agents.
Achievable benefits
In difficult markets, up to 2% of the total invoice can turn into a loss due to non-payment. However, with leading-edge (i.e. better than other issuers) account management, up to 40% of this can be saved.
