Fascinating case of HVAC Giant Lennox International enabling a successful transformation of its credit and collections processes.
Faced with the slowdown in the economy hitting the building industry really hard, Lennox started seeing signs of trouble with their customers unable to pay their bills.
Their innovative approach to resolving this is an example of people, process and technology coming together:
1. Developing risk profiles by Customer segments (historical sales volume, risk)
2. Proactive collection strategies – diagnosing and root causing potential collection issues
3. Closer collaboration between sales and collection
4. New accelerated credit risk scoring process
5. Stronger customer relationship
What are some of the key takeaways:
a. Technology can be a huge help in multiple ways:
i. Providing the algorithms for credit risk scoring based on customer specific parameters (like sales, past payment history etc)
ii. Proactively identifying threshold cases that may need exceptional resolution
iii. Defining collection strategies by customer segments
b. Process standardization for credit and collection