Context
APAC’s market-leading quad-play telecom provider, with over 50% market share and a significant post-paid customer base, was suffering from legacy credit management and collections practices. High Days Sales Outstanding (DSO) and a growing volume of overdue accounts were directly impacting profitability.
The challenge
The Group CEO and CFO required a complete transformation of credit, collections, and recovery operations — significantly reducing DSO while simultaneously improving customer experience and retention, particularly for high-value customers.
What we did
We led comprehensive diagnostics of the existing credit management processes, identifying inefficiencies and one-size-fits-all communication approaches that were failing to distinguish between customer segments.
Using Six Sigma Value Stream Mapping, we redesigned end-to-end credit and collections processes, eliminating non-value-adding activities. We then collaborated closely with the client’s internal BI and analytics teams to create a customer profiling tool based on 32 behavioural, financial, and demographic parameters — segmenting the customer base into 13 distinct profiles.
For each segment, we developed targeted multi-channel outreach strategies (SMS, auto-dialers, personal calls, letters) calibrated to the customer’s value, risk profile, and communication preferences. We worked with internal IT teams to implement changes across billing and charging platforms in real-time.
Results
- Achieved a 40% reduction in Days Sales Outstanding within a single quarter
- Delivered the first advanced customer profiling system in the market, enabling targeted, segment-specific collections
- Improved customer experience by replacing blanket approaches with personalised communication strategies aligned to individual profiles
Related service areas: Transformation, Profitability