increase in self-cure rate
decrease in customer accounts sent to collection agencies & for equipment recovery
increase in monthly savings related to collection activities
At a glance
Number of employees
Number of clients
Videotron (www.videotron.com), a wholly owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access, cable telephone, and mobile telephone services. Videotron is a leader in new technologies with its illico interactive television service and its broadband network, which supports high-speed cable Internet access, digital cable television, and other services.
Large service-based companies such as Videotron often face a colossal number of past-due customer accounts. With thousands of overdue accounts each week, it is difficult, if not impossible, for collection teams to treat them all. As a result, many accounts are sooner or later transferred to collection agencies, representing a major loss of revenue for the company. To deal with this problem, Videotron took on a huge challenge:
How to increase the efficiency of current collection tactics to reduce the number of customer accounts sent to collection agencies?
In response, two strategies were prioritized:
Equip itself with new means of communication to reach clients in a more effective manner, quicker and on a larger scale.
Provide a digital payment alternative that allows clients to pay off their outstanding balances themselves without the involvement of collection agents.
In 6 months, we helped Videotron decrease the number of customer accounts sent to collection agencies by 11%.
After considering the available options, Videotron chose Lexop, an all-in-one technology solution that has set the new standard in collection for companies.
The company’s strategy analysts use Lexop to:
Process past-due account lists in just a few clicks.
Reach tens of thousands of clients each week through personalized emails.
Track interactions in real-time and quickly adjust collection tactics in accordance with the results obtained.
Provide an online payment portal where clients can pay off their outstanding balances themselves.
Incentivize clients and thus improve subsequent collection campaigns.
Among the many features provided, tracking interactions in real time is an indispensable asset for the preparation of our performance reports. We immediately know how many emails were sent, opened and read and if payments or payment attempts were made. We can then quickly contact clients who want to pay but don’t have the immediate means to do so and offer them payment alternatives adapted to their needs.
Senior Credit Risk Analyst of Videotron
Significant benefits were quickly identified within the first month of using the solution, all contributing to an increased overall collection rate.
Increased self-cure rate
Providing a 24/7 online payment portal dedicated exclusively to the payment of outstanding balances resulted in increased payments made without the involvement of collections agents.
Reduced remittance times
The instantaneous sending of thousands of payment notices and reminders by email and the possibility for clients to pay off their outstanding balances in just one click have reduced average remittance times.
Reduced loss provision
Monthly savings related to collection activities were achieved, due in particular to a significant reduction in the number of customer accounts sent to collection and recovery agencies.
Improved customer experience
Payment notices and reminders sent by email rather than regular mail, and payments made online rather than by telephone, are considerable advantages that help to adapt the customer experience to modern habits.
Increased contact rate
A significant increase in the number of email addresses linked to customer accounts was recorded. Agents are now aware of the tool and increasingly ask for clients’ email addresses, ensuring an additional method of contact and facilitating the migration to online invoicing.
A significant decrease in the number of “low risk” customer account provisions assigned to collection agents was noted. Agents are now able to focus on “high risk” accounts requiring particular attention. Videotron noted an increased overall account collection rate and improved distribution and communication of notices to its clients.
Videotron demonstrated the utmost agility in the way it successfully conducted this initiative. The complete implementation of Lexop, including the decision-making process and pilot project, lasted three months.
Here is an overview of the key steps taken:
Validation and security audit
Procurement and signature of contract
Implementation of a solicitation and follow-up strategy for outstanding customer accounts
Creation of texts and formats for the various email templates
Choice of payment methods offered (credit card, Interac®, etc.)
In-house testing of outgoing emails, payments and collections
Launch of initial collection campaigns
The speed and simplicity with which the solution was implemented exceeded our expectations. The range of features, ease of use and efficiency of the solution have now made it an indispensable tool for our customer-accounts department.
Vice President and Corporate Controller at Videotron