End to End Customer Journey Solutions Utilizing Differentiated Data Assets

This blog delves deeper into a presentation delivered with Equifax at the Telecommunications Risk Management Association (TRMA) Spring conference in Tucson, AZ.

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Recession Looming

How does a looming recession change how we as an organization will handle the customer journey? Nobel-winning economist Paul Krugman was quoted in February at the World Government Summit as saying that “there was a good chance that the U.S. will have a recession late this year.”

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Industry Trends

Piggybacking off the trends seen on a more macro level, we begin to dive deeper into how these trends bare out in the telecommunications industry as we see similar growth in the late stage aging buckets.

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Greater than 30% of accounts places in 2018 have a balance of over $500

TACKLING THE PROBLEM

As we previously stated, ultimately each of these departments is looking for their proverbial leg up, and the credit and collections teams are no different. They spend millions of dollars annually attempting to mitigate risk during customer acquisition through risk modeling and fraud prevention solutions, but it seems that all too often the next steps in the customer journey are overlooked.

  1. Never Pay — Identifies the probability that this customer will never pay us.

Mechanics

As with any machine learning model, there are three core steps in the process: Train, Test, Operationalize. Then repeat.

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Differentiated Data

There are five key differentiated data sets we considered when putting together the presentation, but this list is by no means intended to be exhaustive. If you believe there are other relevant pieces of information outside of those listed here, we encourage you to work with your data warehousing teams to effectively ingest and stage those datasets for use in the model.

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OPERATIONALIZE

To operationalize these types of models and effectively alter your current strategy, there should be several considerations about the AR management or Collections management system you are utilizing.

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Let's turn data challenges into business advantages.

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