10 things to consider when changing your collections platform

The current collections technology landscape is fast-moving and choosing a platform is no easy task. Get it right, your system will enable customer-friendly processes, improved collections performance and a lower cost to serve; get it wrong and the reverse can happen.

In this blog, I look at the key factors to consider when changing your collections platform.

1. Don't assume upgrading with the same vendor is the best choice

Historically, the collections system market was dominated by a small number of established vendors with very similar offerings in terms of functionality, technology, and price. As such, it was no surprise that the easiest choice was to stick with the same vendor and upgrade, rather than looking at what else was out there.

It's different now - new vendors, using new technology, mean there is much more choice and range of functionality, with a number of new entrants offering lighter, more flexible and cost-effective platforms.

Our advice: conduct a full market assessment before changing your platform

2. Weigh up the various options: self-build, CRM platform or off-the-shelf

New entrants such as Appian, Salesforce (and organisations utilising Salesforce) have created an alternative technology model enabling easier self-build. Considerations around self-build costs and bespoke complexity must be weighed against desired operational utility. It is important to ensure collections systems fundamentals are captured from the outset to provide a solid foundation on which to build bespoke capability.

Off-the-shelf collections systems may be proven and lower risk, but you must make sure they will meet your current and future needs.

Our advice: outline your requirements to help decide which route to take

3. Cloud-based platforms are the obvious choice but consider your support model

Cloud-hosting is a natural progression for almost all modern systems installations, typically providing a lower cost base and more flexible delivery. But it requires a bit of thought about the support model, including the option to use a fully managed service, which may reduce reliance and costs associated with internal IT resourcing and infrastructure.

Our advice: consider whether to manage in-house, or opt for a fully managed service

4. Your system must match your current (and future) business needs

This may seem obvious, but all too often we've seen software decisions based on very generalised requirements meaning the final solution is not optimal for the business needs.

Key factors significant to the organisation will ultimately drive the decision, including maturity of the organisation, budget and benefits, risk appetite, scalability, IT architecture, and future ambition.

Our advice: invest time in requirements definition and rigorous RFI/RFP/demo assessments

5. Don't overlook omni/opti-channel communications capability

Having an omni/opti-channel model (as opposed to multi-channel) is a must these days to provide consistent customer interactions across voice, IVR, IVM, SMS, letter, webchat, and self-service portals.

As well as helping your customers, you'll also reap the rewards in terms of the data insight this approach provides, including contact data, preference data, and advanced analytics.

Our advice: make sure omni/opti-channel is one of your upgrade requirements

6. Give more control to business users

Modern collections platforms are moving quickly towards enabling business users to configure and make simple system changes.

By removing the need for IT or technical developers having to configure systems, we are seeing a new era where efficiency, transparency, and ease is allowing organisations to keep up with the pace and ever-changing needs. Faster delivery of small changes at much lower cost is now a reality.

Our advice: look for systems that provide more levels of end user configuration

7. Don't be scared to accept an MVP (Minimum Viable Product)

The product advancements and improved overall architecture have allowed vendors to work with organisations in a more effective manner and ultimately deliver an acceptable MVP in much more aggressive timescales.

The benefits include avoiding typical 'big project' risks, whilst quickly enabling a base to be formed on which future enhancements can be prioritised and delivered over time. This often works best in complex multi-product / silo / country scenarios.