Solution Snapshot: Billing Notifications / Collections Increase Cash Flow with Timely Bill Payment
Problem:
Subscribers were taking longer to pay their bills increasing the cost of collections management and deferring revenue.
Challenge:
A mid-sized telephone Internet provider needed to improve their cash flow and reduce delinquent accounts by collecting more timely payments from their subscribers.
Previously, the earliest opportunity to remind their customers that a payment was late was in the following month’s statement. Since statements and payments frequently crossed in the mail, customer satisfaction suffered when the statement asked for a payment which had already been sent.
Highlights:
Front Porch assisted the provider in writing simple scripts using our API. The solution automatically takes the data from the incumbent billing application and loads it into the Front Porch system in three distinct groups. The groups are; Customers that are 15 days late, those that are 30 days late, and delinquent subscribers that are 45 and more days late.
Each group received a tailored billing status notification in their next browser session, with excessively delinquent subscribers placed in a captive portal. Subscribers within the captive portal must bring their account current AND sign up for automatic online payment to regain full Internet access.
Results:
Cash flow improved and Days Sales Outstanding (DSO) was significantly reduced
A substantial increase in automated bill payment sign-ups was seen immediately after implementation.
Truck rolls for non-payment disconnects were virtually eliminated.
Delinquent subscribers placed in a captive portal were immediately released upon online payment without manual intervention or calls to the call center.
