Adopt an automation-first approach to make your collections strategy more dynamic

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A collections process that leverages machine learning and insights helps you focus your order-to-cash strategy on the right accounts.

In the last article, we looked at how you can minimize your collection efforts by using insights to analyze the impact of your collection’s platform. But what if you already have a collections platform, and your goal is to improve the process in place?

Leveraging insights and predictive analytics in your collections process can help you understand how and where to start making changes.

The impact of manual tasks

If your customers are already used to your collection’s strategy, leveraging insights can help you take a more scientific approach to beefing up your collections. It’s important to optimize your collections approach over time so you don’t plateau on performance.

On top of this, before you make key changes, you need to understand how your customers have adapted to your current strategies and which customers pay a certain way regardless of your policies and interactions with them. This will help you understand what activities cause rework and wasted effort.

 Implement alternate strategies for late-paying customers

Most organizations want year-on-year improvements in collections performance. This can be achieved through machine learning-assisted predictions and forecasting. Leveraging analytics can help you anticipate, or predict, payment behaviors, implement the right collections treatments, and assign alternative strategies to high-risk customers as soon as the data indicates a potential issue. The more predictive or forwarding looking the analysis, the easier it is to catch issues before they become big problems.

Using predictive models that leverage machine learning techniques enables you to make complex correlations and fully analyze a vast amount of order-to-cash (O2C) data, identifying trends that don’t typically show up in operational reports. You can leverage data models to predict future outcomes based on continuing with a current process or strategy and understanding what would happen if that process or strategy changes.

A strong analytics program can help you make calculated changes to your strategy and approach. It can also help you ascertain the right credit and collections approach for each customer, enabling you to reduce risk, improve cash, and make your collections interactions with your customer much more valuable.

Read other blogs in this series:

To learn more about how Capgemini can help you optimize your O2C processes with insights and analytics, contact Caroline.Schneider@capgemini.com and chandrasekhar.nukala@capgemini.com

Learn more about how Capgemini’s Finance Powered by Intelligent Automation offering helps you navigate the myriad of products, tools and services, enabling your business to benefit from an intelligent solution that combines automation, digital platforms, know-how and insight. 

Caroline Schneider has been delivering and designing O2C solutions for clients for over 18 years. She is passionate about delivering solutions to clients to maximize their working capital through technology, automation, and industrialized process design.

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