Title: FIELD SERVICE
1FIELD SERVICE COLLECTIONS Butch Brown Charter
Communications Inc. Credit and Collections
2Accounts Receivable and Bad Debt Risk Management
Cycle
- Sales/Marketing
- Debt Sale Credit Assessment
-
ID
Verification - Unreturned Equipment
-
- Vendor Mgmt
METRICS Multiple Statements - Credit vendor
- 3rd Party Agency
- Field Collections
-
Collections Timeline - Collection Metrics
- Gross Write-off
Collections Tactics - Allowance
Non-Pay Churn - Bad Debt Expense
Account Aging - Collection Expense
Retention
3The Operational Fundamentals
- Timeline vigilance
- Entry into Collection until Write-off
- Collection Tactics/Retention
- Telephone calls (Outbound/Inbound)
- Letters (T-gram/Billing System generated)
- Field Service (Door-to-Door)
- Agency Placement (Credit reporting)
- Credit Policy
- Pre-qualification
- Recovery of Dollars and Equipment
- Field Service Contractors
- Recovery Program
4The METRIC Fundamentals
- Operating Cash Flow
- Bad Debt Expense
- Collection Expense
- Allocation/Provision/Reserve
- Non-Sufficient Funds
- Bankruptcies
- Equipment Loss
- Subscriber Growth
- New Account Distribution by Risk Score/Credit
Class - Non-Pay Disconnect as a percent to total Basic
Subscribers and as a percent to total
disconnects.
5Operational Fundamentals Field Services
- Experts in Face-to-Face Customer Contact
- Backed by a rapid implementation plan supported
by a solid infrastructure
6Operational Fundamentals Field Services
- Advantages of Outsourcing Field Collection
- Collect on past due accounts with emphasis on
saving customers. - Retrieve valuable equipment prior to disconnect
- Reduce costly truck rolls
- Able to meet quotas and reduce the burden of
routing scheduling - Installers free to connect new customers and
upgrade existing ones - Technicians able to devote time needed for
critical plant maintenance
7Operational Fundamentals Field Services
- Direct Customer Contact
- Improved Save Rates (Churn)
- Improved Bad Debt
- Prevent Migration to Competitors
- Impact Operating Cash Flow
- Non-Pay Disconnect statistical feedback
8Operational Fundamentals Field Services
- Direct Customer Contact
- Working methodically over non-traditional hours
field reps will make repeated attempts to find
your customer at home. - Performance based contract that prioritizes
collection of funds and customer saves.
9Operational Fundamentals Field Services
- Improve Save Rates (Churn)
-
- Save rates historically exceed 58
- at the door and coupled with another
- 12 of customers who pay on their own
- translates to more than 70 who remain
- as customers in good standing.
10Retention Rates to Total Disconnects
11Operational Fundamentals Field Services
- Improve Bad Debt
-
- Bad Debt is a function of aging and write-off.
Door-to-door collections reduces aging and saves
customers from write-off.
12Operational Fundamentals Field Services
- Prevent Migration to Competitors
- Reversing customer loss due to non-
- payment coupled with the acquisition of
- new customers equates to substantial
- customer net gains.
13Operational Fundamentals Field Services
- Impact Operating Cash Flow
-
- Once a customer is disconnected for non-payment
it becomes more difficult to re-acquire them. -
- Saving customers maintains steady cash flow
and dramatically reduces costly truck rolls for
disconnects.
14Operational Fundamentals Field Services
- Non-Pay Disconnect
- Statistical feedback
-
- Theft of service
- Identification Theft
- Direct Sales penetration rates
- Improved telemarketing
15Operational Fundamentals Field Services
- Training
- Ongoing corporate field training classes
provide all personnel with detailed industry
data, product knowledge proven sales techniques
and acceptable technical and safety standards. - Compliance
- Requires that all reps have a complete
background investigation, submit insurance
verification and are OSHA/EEOC/FCRA compliant.
16Operational Fundamentals Field Services
- Reporting
- Electronic reporting enables field managers to
compile data deploy reports to the corporate
office. - This allows the Company to maintain the highest
standards of proficiency and provides a mechanism
for immediate corrective action. - Quality Control
- Random daily validation of work completed by
sales and technical field personnel.
17Operational Fundamentals Field Services