Billing and collection is perhaps the riskiest part of any business. It is especially crucial in the telecommunications industry since it means taking care of your customers’ bank accounts and other personal information related to finances.
You lower these risks significantly when you outsource collections and billing. Actually, this has become the trend in the telco industry moving forward.
Benefits of outsourced debt collections
Below are some of the benefits of outsourced debt collection:
Faster resolution to payment disputes
Payment dispute is inherent in any telco’s billing and collection system. The key is to make its resolution faster, with both the company and its customers satisfied with the result.
Reduced collections cost
Billing and collection cost a lot to do in-house. For one, it takes so much time from your staff to complete just one billing and payment cycle. This means having to pay for overtime and overtime meal costs as well.
Hiring an outsourced billing and collections team lets you avoid all these unnecessary expenses.
Reduced delinquency rates
While your team may have a hard time reducing delinquency rates, most outsourcing firms are adept on this issue.
Delinquencies happen because of the use of credit cards when paying utility bills. The best third-party providers use the latest billing and collection techniques and software to ensure that delinquency rates are kept to a minimum.
Reduced collection time
As mentioned above, one billing and collection cycle can take so much time from your staff that they might disregard their primary tasks in the long run. Debt collection involves a lot of stress, which can sometimes be too difficult to handle.
Outsourcing this part of your business will not only help reduce collection time but let your team focus on their core competencies.
Increased collection rates
Reduced collection time and collection cost automatically mean improvement in collection rates. Third party providers typically employ a call center system where specialists receive hundreds of calls per day from consumers. More calls received meant more opportunities for these customers to pay on time or to pay arrears.
Increased productivity and revenue
Hiring a third party collection service as an accounts receivable outsourcing route is one of the best ways to get consumer debt under control immediately without having to make any substantial direct expenses.
These savings can then translate into an increase in operational productivity and, more importantly, add to the financial bottom line as well.
Improved customer service and reduced end-customer complaints
With an established system in place, these agents can access a customer’s personal information, payment history, and other pertinent data right then and there to give an appropriate answer to any query. This helps your telco firm lower complaints while at the same time improving customer satisfaction levels.
Outsourced telecom billing and collection process
A telecom’s billing and collection process typically have two parts: inbound collections and outbound collections. An outsourcing firm can support you in both of these aspects with the help of their experienced call center specialists.
Inbound collections refer to the process of receiving calls from customers with queries regarding their bills and payments. Most of the time, outbound agents are the ones to direct customers to inbound agents so that they can try and iron out the customer’s financial obligations to the company.
The opposite of the inbound collections process, outbound means that the call center agents themselves are the ones who will reach out to customers to try and collect payments. This is quite a tricky process because you want to do this without making your customers feel bad.
Indeed, you can save your in-house team from a lot of stress if you decide to outsource receivables collection.
Billing and collections outsourcing companies
Have you decided to outsource collections and billing? The next step is finding the right outsourcing firm that will fit your business needs. Make sure to hire those that are experts on their field, goal-oriented, and self-motivated to complete the tasks you require.
Also find those who can lower communication barriers, especially when outsourcing offshore, and have a risk management system in place to ensure your goals are all met.