Introducing Direct Debit Debt Collection Systems
Challenge: Implementing Direct Debit Debt Collection Systems to support business strategy targetting growth in Membership
Timeframe: 3 months
Situation:
- Membership business with high volume of small value customers;
- Credit control extremely timeconsuming and costly;
- Very slow payment by members; and
- Large volumes of credit notes due to poor accuracy of data and slow collection of cash.
Tasks:
-
Implement Direct Debit Debt Collection Systems to facilitate efficient and effective collection of membership subsriptions;
Actions:
- Worked closely with bank to obtain necessary approvals;
- Selected and implemented Direct Debit Software;
- Made changes to accounting systems to facilitate membership systems and direct debit systems connectivity and processing;
- Communicated process with customers and obtained agreement and required information from customers;
- Tested all processes; and
- Launched live process;
Results:
- Year one - 30% of members chose Direct Debit;
- 100% collection success year one;
- Credit control significantly improved;
- Cash collection significantly improved;
- Number of Direct Debit customers expanded by 20% in years 2 and 3; and
- Use of Direct Debit systems enabled significant improvement and expansion of online transaction processing systems with mandatory use of direct debit to ensure efficiency.
Print