The client is an auto-finance lender and car dealership with around 150 outlets in the US, mostly franchise-owned. It specialises in serving people with poor credit histories, including bankruptcy or vehicle repossession, and provides the car financing itself.
The client first built its CRM system in-house twenty years ago to support its entire front and back office, from initial sales enquiries to loan underwriting, contracting, billings, collections and bad debt management.
However, after little investment over the years the CRM was now holding the business back. Its poor reporting capabilities prevented any holistic view of the end-to-end process, and hindered the implementation of structured processes or operational key performance indicators (KPIs). This resulted in inefficient manual processes and rocketing costs.
With no budget available to make improvements to the existing system or invest in a new one company sought to cut costs significantly, while improving operational performance. Specific automation and process improvement goals included:
We entered into a five-year outsourcing partnership with the client to transform its technology and processes, and directly manage lead conversion and first line collections. The engagement spans three main areas: financial, technology, people and process.
#1 Financial: We guaranteed the client a saving of 32% over five years on technology and outsourced activities, with Firstsource underwriting the risk. This is contractually guaranteed and achieved with no capex or opex expense to the client.
#2 Technology: Our lean and purpose-built workflow automation suite and CRM system were designed, developed and maintained by the people who actually perform these activities for clients. This takes out the operational risk that comes from complex software that requires huge teams of consultants to build and configure.
Our system in essence “sits on top of” the client’s existing legacy CRM system. We had the new software up and running within five months, eliminating any need for data migration and significantly reducing costs and risk. The new CRM and workflow:
Currently, both the old and new systems run in tandem, with all new customer data going into the new CRM, which in turn backs up all data to the old system. Over time, the old customer data will be migrated to the new system and the old system will eventually be phased out.
#3 People and process: We focused on bringing process rigour and a culture of continual improvement to all activities. We took on two main processes for the client: managing leads and first-line collections.
We redesigned the lead management process to improve lead-to-appointment and appointment-to-buy ratios. Before booking an appointment for a customer our team conducts rigorous phone-based screening to check the customer’s loan eligibility. The team also reminds customers about their upcoming appointment, makes sure they know what documentation to bring so they can complete their purchase on the same day, and follows up on any dropped leads.
Next, we leveraged a multi-channel approach based on data analytics to redesign the first-line collections process. Our team contacts customers every pay day, which tends to be every week or fortnight, and uses analytics to identify the best day, time of day and channel to contact each customer.
Firstsource ensured that the new CRM and workflow systems were up and running within five months, without any opex increase or capex requirements for the client, leading to several tangible outcomes including:
Firstsource is a leading provider of customised Business Process Management (BPM) services. We specialise in helping clients stay ahead of the curve through transformational solutions in order to reimagine business processes and deliver increased efficiency, deeper insights and superior outcomes.
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