The Spindown monthly: April
Welcome to the Spindown newsletter!
Your monthly digest for collections insights, takeaways from industry shapers and the latest events.
In this edition:
Register to attend our next episode of Better Debt! ??? Scalability & Resilience: Setting your collections up for success with CPS230
Now more than ever, the ability to scale quickly, compliantly, and with a strong customer experience is key. ??
With APRA’s CPS230 updated Operational Risk Management standards coming to effect from July 2025, what does this mean for collections departments?
Join us at Better Debt on 3 May at 9-10am AEST as we explore how the need to scale with resilience applies to both in-house teams and external agencies, with David Malcolm - Risk Management Specialist, PwC Australia and Poli Konstantinidis - Industry SME, Previously Experian & Latitude Financial Services .
They'll unpack:
?? Why 86% of customers prefer to self-serve in debt collection
When money can be managed online or through an app, why shouldn’t paying back debt be the same?
Self-serve is?a collections solution that empowers customers to independently access information or manage their debt without having to speak with a human agent.?
In collections, the ultimate self-serve capability includes:
Benefits of digital self-serve collections
?? 86% of InDebted customers get back on track independently using our online portal.
?? The highest self-serve rates are in the United States (93%), followed by Australia (80%).
??If we look specifically at debt type the greatest self-serve rates are from customers with overdue BNPL accounts. An astonishing 94% of customers from one of our largest United States BNPL clients self-serve their overdue accounts.?
Customer retention and collections metrics for subscription-based businesses ??
Which metrics matter most to your collections? For subscription-based companies, there's two that are critical:
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1?? Customer lifetime value
This is the total amount someone spends with your business, throughout their lifetime as a customer.
If a customer falls behind, it’s understandable to think that’s the end of their relationship with your brand.
But, that doesn’t have to be the case.
Our VP, Growth Hugo R. explains that by supporting customers to get back on their feet - in a way that truly works for them, you can rehabilitate their relationship:
It’s all about working with customers. Rather than collections being a damaging experience that leaves customers feeling burnt, make it a positive one. ??
2?? Failed payments
Top companies use this metric to uncover why payments are failing, to inform collections strategy.
For example:
Let’s say the top reason for your failed payments are insufficient funds, and there’s no follow-up to recover overdue balances.
To keep these customers in your ecosystem, you can enhance your user experience with targeted tactics such as automatic reminder notifications.
? But what if outstanding payments still persist?
This is where a recoveries partner comes in, one who prioritises your customer relationships - with a payments experience that matches your own.
Benefits of a champion-challenger model ??
The champion-challenger?model is a great way to test an existing collections strategy (the champion) against a different approach - the challenger. You can also gain insights to:
A champion-challenger model will do more than improve your collections - it’s beneficial for innovation, culture, and most importantly - providing your customers with the best experience possible. ??
Further resources:
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