Let AI Be Your Complete Collection Solution
April 23, 2019
Let’s face it, time and money are two of the most important resources when it comes to business operations. Not only is there a direct correlation between the two, but if we’re not chasing one, we’re racing the other. That’s why, in the last few decades, the focus has shifted from raising the costs of products or services to examining where time can be trimmed from labour and operations, in order to maximise revenue.
Perhaps one of the biggest areas in an enterprise where these two resources maintain heavy focus is in AR or collections. The direct point in an organisation where payments are collected should be the last place where time and extra money should also be spent.
Current Challenges of Collections
The most common challenges with collections involve the gross over-consumption of time and money.
The Manual Collection Process
The manual collection process typically involves using readily available, loosely relevant data entry platforms or Excel spreadsheets to create a list for collectors to work from. The collector will begin to roll down the list by calling and sending emails to the customers.
While this may outwardly seem like a cost-effective method, under further scrutiny, the lack of standardisation doesn’t allow any sort of customer prioritisation, nor does it give any sort of insightful glimpse into each customer’s unique situation outside of quick-jotted customer notes, which can create a higher potential for human error. This, in turn, can create past due challenges, bad debt, and poor DSO. In fact, in a study conducted by Dartmouth College’s Tuck School of Business, 94% of spreadsheets were found to contain errors.
In terms of the efficiency of a manual collections process, a study by Paystream Advisors found that companies who rely on manual processes to manage collections spend 15% of their time prioritising their activities. Another 15% of their time is spent gathering information to make the collection, and only 20% of their time is spent actually communicating with their customers about payment. Plus, according to Credit Today, 25% of credit departments do not have adequate staff to manage their workload. Ultimately, you have an understaffed agency or department wasting their time on inefficient operations.
The Automated Collection Process
The automated collection process involves adopting specialised Artificial Intelligence technology that stores customer data, analyses it, prioritises it, and automatically sends templated correspondence to customers about their payments in the appropriate timetables. This allows collectors to spend their time focusing on correspondence with high-profile accounts.
The automated collection process has provided leaps and bounds to the manual collection process. According to Paystream Advisors, companies who are using accounts receivable automation software spend only 6% of their time prioritising their activities, 6% of their time gathering information for collections calls, and 62% of their time communicating with their customers about payment. They also found that about one-third of companies that have implemented AI solutions have reported they can see the technology impacting at least 60% of their processes.
Perhaps the only challenge faced with AI solutions was the actual adaptation to the technology. The Association for Finance Professionals (AFP) found that 58% of finance and treasury professionals said the biggest hurdle to adopting emerging technologies in their organisation is “awareness and engagement.” However, this is an easy challenge to overcome considering the benefits.
AI is Your Complete Solution
What it boils down to is that adopting the right AI for AR and debt collections can create a process that’s much more streamlined and much more effective. Since time is of the essence, and cash is king, AI is your complete solution for both.
Using AI such as Rimilia to collect more cash per call is done through a few key features.
Use of Intelligent Predictive Analytics
AI provides a simple, in-depth look at your customer’s behaviour to help you predict the payment patterns of all your customers. Using this data, it will highlight when a customer will pay and alerts you when an action is required, or when a customer payment trend changes.
Real-Time Data and Analytics
Company initiatives and future endeavours are completely data-driven, and debt collection is no exception. AI provides more accurate real-time reporting, cash flow forecasting, and customer data that allows action-taking decisions to be made quickly.
An overworked staff that wastes time on manual processing where it isn’t necessary isn’t conducive to an organisation’s bottom line. AI employs fully adaptable debt strategies based on payment and risk performance and sends electronic delivery of customer statements and overdue letters. This allows teams to focus on value-add tasks rather than manual activity. Plus, it uses an event management workflow to assist team performance reviews and KPI setting.
Saves the Big Two
Simply put, AI such as Rimilia Collect saves time and money. It allows you to call the right customers at the right time, on every occasion, ensuring you’re chasing your customer in the most effective way. Those who utilised an AI platform such as Rimilia Collect increased their average collection by 60% per day, and increased collector efficiency by 35% per day. If that doesn’t encourage companies to adopt AI, perhaps the fact that those who utilised Rimilia Collect reduced 60-day debt by 80% and over six months of debt by 70%, will.
How Can You Collect 3x More Cash Per Call With AI?
If you’re ready to make your debt collection process more efficient and effective, and start collecting three times more cash per call, Rimilia Collect is your solution. Contact a sales rep for your demo and don’t waste anymore of your two most valuable resources.