CUSTOMER LIFE TIME VALUE

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Rule of Thumb:

• Early debt collection costs amount to approx. 3% of recoveries, while late collection costs amount to 8%  

Cost reduction could be achieved by:

1. Prevention - trying to reduce the inflow into the collection unit
2. Segmentation - improve resource allocation to those groups requiring actual support vs self curing segment
3. Pre-selection of proven collection strategies per segment instead of continuous A/B testing* 
4. Automate communication processes in in a more customised fashion (by using AI for example)**
5. Digital offering of Promise - to- Pay solutions to selected segments**

These actions combined lead to preventing clients to delay on their loan repayments, improving client satisfaction, higher recovery rates, an efficient collection process, future revenues protected and a retained brand equity. 

Final Outcome: 

Customer Lifetime Value

* This can only be offered depending on the data availability of the organisation

** This is not part of our current offering 

Prevention and segmentation combined should lead to: 

• A reduction in roll rate by 1-2% points* - depending on the size of your portfolio, this could lead to savings between 100,000 of euros to several millions per year
• Lower provision formation - lower inflow into higher collection buckets lead to lower stage 2 and stage 3 provision formation
• Higher recoveries due to timely and personal intervention
• Improved NPS score
• Improved Employee satisfaction 

* SPRINKEL.AI is currently testing these potential savings assumptions

Despite the complexity of an AI/ML model, we like to keep it simple for you!

1. No need to replace your existing collection workflow systems - SPRINKEL.AI acts as an 'add on'
2. No need to build expensive data platforms & hire expensive modelling resources
3. Monthly subscription fee or reduced yearly fee incl. different support levels
4. Upfront fee covering customisation and installation of the unique model
5.  Limited investment required and solely depends on your objectives to automate more processes by using SPRINKEL.AI