Skip navigation
Skip navigation
You are using an outdated browser. Please upgrade your browser.

Use of specialist IT systems and integration of existing IT systems identified as most important factors in reducing customer debt and managing customers with repayment difficulties

Bristol, 15 December 2004 – UK companies which are not using specialist Customer Revenue Management and Collection systems are missing out on billions of pounds of revenues.

New research from revenue collection experts Talgentra has revealed that improving customer profiling, the use of new technology and the integration of existing IT systems are seen as the most important factors in increasing revenue collection in utility, telecoms and finance companies. However, most organisations in these sectors are not using specialised technology systems to improve collection rates and increase revenues.

These companies share common ground in that they are owed money by customers for loans and credit cards or they provide services in advance of payment.

Talgentra’s survey has uncovered some shocking statistics -- every single one of the 250 senior managers questioned expect to see an increase in the number of customers with repayment difficulties over the next 12 months. 87% of respondents expect that the level of consumer bad debt write-off (as a % of their company’s revenue) will increase in 2005.

Chris Buckham, Director of Marketing at Talgentra, said: “Companies are quite literally throwing billions of pounds of revenue down the drain every year by not adopting a best-practice approach to decrease the level of customer write-offs. Inadequate IT systems are no longer an acceptable excuse for not being able to bill and collect money from customers.”

Specialist collection systems and sophisticated credit scoring and selection facilities are available today and the Return on investment (ROI) of deploying these have been proven.

The financial returns of implementing a debt collection and revenue management system such as Talgentra’s Tallyman are quantifiable and immediate. Companies are reporting a complete pay back on their investment in less than 12 months as a result of reduced write offs and increased revenue collection. Cash flow too is improved– businesses that have implemented new revenue management and collections systems have improved their collections performance by 25% in less than 6 months.

Professor Nick Wilson from The Credit Management Research Centre at Leeds University Business School, said: “Of course, companies should adopt a sensitive approach when collecting overdue payments from certain customers who are in financial difficulties. However, we shouldn’t be diverted from the fact that people should repay a loan or pay for utility services that they have used and that non-paying customers affect future prices for all of us.”

Copies of Talgentra’s survey “Trends in Revenue Management and Collection 2004” are available at www.talgentra.com

About Talgentra

Talgentra provides specialist customer billing and revenue collection systems primarily to the utilities, communications, public sector and financial markets. The company has over 80 clients - including Royal Bank of Scotland, Orange, Vodafone, Severn Trent, British Gas, Scottish Power and EDF Energy - using the solutions to bill more than 10 million customers and manage and collect more than $2 billion of debt.

Talgentra’s Tallyman system automates the collections process by consolidating all credit-related communications, including phone calls, emails, letters and faxes. However, its unique value lies in its ability to segment customers in debt in the same way marketers segment customers and prospects using CRM systems. Thus Tallyman enables companies to adopt a more targeted, personalised approach to debt collection, for example, an established customer who usually settles bills on time will not be treated in the same way as a new customer who defaults on their very first payment.

Talgentra has offices in the UK, USA and throughout Asia Pacific. It is a member of the Alchemy Partners Investment Portfolio.

For more information about Talgentra and Tallyman, please visit www.talgentra.com and www.tallyman.co.uk or contact its PR representative, Bridget Fishleigh on 44 1273 624 442, and bridget@nomadcomms.com

This press release was distributed by ResponseSource Press Release Wire on behalf of Nomad Communications in the following categories: Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.