Hybrid collections approach achieves up to 90% conversion rates

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In this case study discover how one client implemented a software bot for billings and collections automation and:

Reduced billing expenses by 70% across all hospitals
Improved days sales outstanding by 10 days
Successfully mitigated the risk of health fund bad debt.

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THE CLIENT

A global financial technology company providing 'buy now, pay later' services.

THE CHALLENGE

In the fast-paced world of ‘buy now, pay later’ services, the client had established itself as a market leader. However, with rapid growth came the challenge of managing collections efficiently while maintaining high standards of customer service. Probe CX has been working with the client since 2016 to handle their collections process, but as the business expanded, so did the need for a more scalable and cost-effective solution.

The client faced several key challenges in their collections operations. They needed to improve recovery rates on overdue payments while simultaneously reducing operational costs. Additionally, maintaining high levels of customer service and ensuring strict compliance with regulatory requirements were paramount. The company also required a solution that could scale seamlessly with their growing business.

THE SOLUTION

Probe CX proposed a hybrid model to address these challenges. The solution encompassed several key components.

Hybrid staffing model
Probe CX transitioned from a fully onshore team to a hybrid model with approximately 65% offshore and 35% onshore staff. This approach leveraged the strengths of both onshore and offshore resources while optimising costs. The onshore team was retained to handle more complex cases, including complaints, hardship enquiries and regulatory matters. The offshore team was carefully selected and trained to handle standard collections activities, ensuring a seamless transition and maintaining high-quality customer interactions.

Tiered commission structure
A new commission model was implemented to incentivise higher recovery rates:

Reduced standard commission rate by 41% for regular collections
Introduced a performance-based tier commission for recovery rates by tranche.

This tiered structure not only reduced costs for the client but also motivated the collections team to strive for better results. The model was designed to ensure that older debts weren't ignored, encouraging consistent effort across all account ages.

Digital channel integration
Advanced digital channels and automated workflows were implemented to enhance efficiency and allow agents to handle a higher volume of accounts more effectively. This included streamlining the process for data transfers, handling payment files and managing recall files. The digital focus assisted in managing the complexities of daily operations, such as processing up to 4,000 new referrals per day and handling various file types efficiently.

By embedding Probe CX technology and digital intellectual property into our collections strategy, Probe CX was able to configure arrangement rules, delivering an uptick in average digital payment value:

Average portal payment

Month 1

Average portal payment

3rd party

Probe CX

$65.51

$112.13
72.1% increase

Month 2

Average portal payment

3rd party

Probe CX

$66.48

$135.32
103.5% increase

Performance measurement:
A weighted scorecard system was introduced to measure and improve agent performance across various metrics, including:

Conversion rates: the percentage of contacted customers converted to a positive outcome (payment or arrangement)
Quality scores: based on compliance, customer interaction and problem-solving skills Promise-to-pay ratios: the percentage of arranged payments that were successfully fulfilled
Productivity: number of accounts handled and right party contacts made.

This system allowed for a fair comparison between onshore and offshore teams, driving healthy competition and continuous improvement.

Quality control and compliance
Stringent quality control measures were maintained to ensure high standards of customer service and regulatory compliance. This included:

Comprehensive training programs for both onshore and offshore teams
Regular quality assessments with a focus on compliance and customer experience
Implementation of new customer identification processes to ensure privacy and data security
Ongoing monitoring and coaching to maintain high-performance standards.

The solution also involved careful change management to ensure a smooth transition to the new model. This included detailed project planning, staff training and continuous monitoring of performance metrics to quickly address any issues that arose during the implementation phase.

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Hybrid collections approach achieves up to 90% customer conversion rates for 'buy now pay later' firm

50%

30%

87%

THE CLIENT

THE CHALLENGE

THE SOLUTION

THE RESULT