Case study
The Problem for Lease-to-Own
The industry is faced with the challenges of engaging with past-due consumers and collecting outstanding balances. This can be difficult, as past-due consumers are often reluctant to communicate with agents, yet, timely and effective communication is crucial to ensure collection success.
Client Overview
A key player in the Lease-to-Own space, providing consumers with flexible payment options for high-ticket items. They faced missed opportunities and experienced escalating difficulties in engaging with past-due consumers due to communication gaps and outdated methods that resulted in suboptimal collections in various stages of delinquency.
The Solution
The client implemented Paydoff: A collections engagement and automation platform that helps Lease-to-Own businesses improve omnichannel consumer engagement to offer past-due consumers a convenient self-service portal to resolve their balance regardless of delinquency stage, without agent interaction, optimizing and automating collection efforts.
Case Study Results
The client achieved the following results:
- Improved past-due consumer engagement: The company saw a 20% increase in the number of past-due consumers who engaged via email channels and a 54% increase in SMS engagement.
- Increased net collection dollars: The company increased net collection dollars by 25% across the board after implementing Paydoff. Below is the breakdown of each delinquency bucket
- 0 - 60 days past due: 18% increase
- 61 - 120 days past due: 22% increase
- Charged off: 34% increase
Conclusion:
By leveraging cutting-edge collections automation, Paydoff not only met but exceeded the client's expectations. Collections automation can be a powerful tool for Lease-to-Own businesses that are looking to improve past-due consumer engagement and increase collections. By using email, SMS, and voicemail drops to reach past-due consumers and automate the collection process, businesses can free up staff time and resources to focus on other tasks.
