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..?