Roundtable and workshop discussing the use of behavioural science techniques, and their applicability, plus use cases, in Collections. This Live event was held at Canada House in London, and sponsored by Symend and Cowry consulting.
Key Take Aways
- Behavioural science can improve customer engagement and outcomes in collections through personalized interventions
- Technologies like AI and machine learning enable operationalizing behavioural science at scale
- Segmentation based on psychological traits provides more effective personalization than traditional metrics
- Early intervention through behavioural archetypes can move customers out of delinquency faster
- Measuring outcomes of behavioural science tests allows continuous improvement through data
- Integrating behavioural science into systems requires overcoming challenges like data and organizational adoption
- Starting with a strong business case focused on quick wins helps gain support for new initiatives
- Opportunities exist to apply behavioural science principles earlier in the customer lifecycle
- Retail, insurance and other industries also present opportunities beyond financial services collections
- Habituation and digital noise create challenges that behavioural targeting can help address
- Combining behavioural science and technology delivers the best customer and business outcomes
- Use of behavioural archetypes and psychological features for segmentation
- Labelling behavioural science strategies to enable continuous learning from outcomes
- Integrating behavioural engagement strategies into adjudication models
Key Statistics
- 47 different psychological components that contribute to customer value perceptions
- 49% repeat delinquency rate for credit cards, 70% for telecom customers
- 1 in 3 customers experience a bill payment issue in the last 6 months
Key Discussion Points
- Shift from homogeneous to heterogeneous behavioural models requires personalization
- Legacy systems and data present challenges to hyper-personalization at scale
- Measuring outcomes enables continuous iteration to maximize ROI of initiatives
- Starting a pilot to prove business case before large-scale implementation
- Address digital noise and habituation through behavioural targeting
- Opportunities exist across customer lifecycle from origination to collections
- Combining behavioural science and AI delivers prescriptive, dynamic solutions
- Early intervention moves customers out of delinquency faster
- Integrating learnings into adjudication models improves origination decisions
Description
This is a summary of a roundtable and panel discussion on the application of behavioural science and technology principles to collections strategies.
The discussion had perspectives from financial services, telecoms to explore opportunities and challenges.
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