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Making Collections and Credit Control a Customer Centric Environment…
Graham Hunt – Head of Collections Aviva UKGI
WHY DOES COLLECTIONS / CREDIT CONTROL NEED TO BE MORE CUSTOMER CENTRIC..?
WHAT IS THE PURPOSE OF A COLLECTIONS / CREDIT CONTROL TEAM..?
Manage Money In and
Out of the Organisation
Maximise Cash Flow
Deal with Payment Queries
Reconcile Financial LedgersPursue
Debtors
Enforce Terms of Business
Facilitate Default
Strategies
Govern Legal Proceedings /
Instruct Solicitors
Predict Payment Failure
Complete Credit Checks
Issue Account Statements /
Invoices Raise Credit / Debit Notes
Write Off Debt
Liaise with Creditors and
DCA’s
CORPORATE PURPOSE VS CUSTOMER PURPOSE…
CORPORATE
Govern Legal Proceedings / Instruct
Solicitors
Manage Money In and Out of
the Organisation
Maximise Cash Flow
Deal with Payment QueriesReconcile Financial Ledgers
Pursue Debtors
Enforce Terms of Business
Facilitate Default
StrategiesPredict Payment
Failure
Complete Credit Checks
Issue Account Statements /
InvoicesRaise Credit / Debit Notes
Write Off Debt
Liaise with Creditors and
DCA’s
CUSTOMER
Make it easy for me to
pay…
Get my bill / invoice /
statement right…
MEASURING SUCCESS…
Days Sales Outstanding
(DSO)
Overdue Debt (£/#)
Average Credit Terms
Aged Debt(>x mths)
Overdue vs Outstanding
Overdue vs Collectable
Debiting Accuracy
Unallocated / Unapplied Cash
Call Answer Rates
Average Handling Time
DCA / Legal Recoveries
Query Volumes
Instalment Income
TARGETS
TARGETS VS MEASURES…
Days Sales Outstanding
(DSO)
Overdue Debt (£/#)
Average Credit Terms
Aged Debt(>x mths)
Overdue vs Outstanding Overdue vs
Collectable
Debiting Accuracy
Unallocated / Unapplied Cash
Call Answer Rates
Average Handling Time
DCA / Legal Recoveries Query Volumes
Instalment Income
MEASURESAccuracy of Invoice (#
correct 1st time)Due Items Paid
When Due
Complaints and Expressions of Dissatisfaction
Query Response
Failure Demand
Payment Problems
TARGETS VS MEASURES…
Days Sales Outstanding
(DSO)
Overdue Debt (£/#)
Average Credit Terms
Aged Debt(>x mths)
Overdue vs Outstanding Overdue vs
Collectable
Debiting Accuracy
Unallocated / Unapplied Cash
Call Answer Rates
Average Handling Time
DCA / Legal Recoveries Query Volumes
Instalment Income
Accuracy of Invoice (#
correct 1st time)Due Items Paid When Due
Complaints and Expressions of Dissatisfaction
Query Response
Failure DemandPayment Problems
TARGETS MEASURES
Targets drive complacency
when near or at target level, they don’t encourage
continuous improvement
Measures cause us think about the
customer, understand
reasons for non-payment and where to act
PUTTING IT INTO PRACTICE…
Then… Now…DSO Items Paid in Due Month
Query Volumes Query Type / ResolutionOverdue vs Outstanding Statement Accuracy
Aged Debt (£) Aged Debt (#)Unallocated Cash Failure Demand
Unapplied Cash Average Cash Unmatched
45% Reduction in Overdue Debt
Value
41% Reduction in Overdue Debt
%
82% Reduction in Debt Value >12
MthsOn Average
90% Paid in Due Month
67% Reduction in Overdue Debt
Volume
84% Reduction in Debt Volume >12
Mths
10% Uplift in Customer
Satisfaction
87% Reduciton in Unmatched Cash
10% Reduction in DSO
Thank You and
Questions..?