The client entered into a ﬁve-year outsourcing partnership with Firstsource to transform its technology and processes, and directly manage lead conversion and ﬁrst line collections. The engagement spans three main areas: ﬁnancial, technology, and people and process.
#1 Financial: The ﬁnancial component guarantees the client a savings 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: This piece involves the deployment of Firstsource’s proprietary CRM and workﬂow solutions i Leverage and Sympraxis. These solutions are integrated with – in essence “sitting on top of” – the existing legacy CRM system. This approach enabled the client to get 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:
- Automates previously labour-intensive steps such as loan underwriting.
- Provides full visibility into activities and KPIs across all front and back oﬃce functions.
- Enables an integrated, multi-channel approach to collections.
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: This component focuses on bringing process rigour and a culture of continual improvement to all activities. The client transferred two main processes over to Firstsource: managing leads and ﬁrst-line collections. The transfer included the 80 people carrying out these activities.
Firstsource redesigned the lead management process to improve lead-to-appointment and appointment-to-buy ratios. Under the new process, before booking an appointment for a customer, the Firstsource 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, Firstsource leveraged a multi-channel approach based on data analytics to redesign the ﬁrst-line collections process. Under this new approach, the Firstsource team contacts customers every pay day, which tends to be every week or fortnight. The team leverages analytics to identify the best day, time of day and channel to contact each customer – for example, some customers might respond best to an early morning text and others to an evening phone call.