Case study Nationale-Nederlanden very pleased with Mail to Pay products.
“Number of insurance policies stopped due to non-payment dropped by 52 percent!”
Cor Möller, Credit Manager
To be able to send a payment request to a customer, including a payment link, in our company's own branding. In 2014, that was the reason for Nationale-Nederlanden to work with Mail to Pay. In the meantime, the service package that Nationale-Nederlanden receives from Mail to Pay has been considerably expanded; from a payment reminder process based on machine learning to Robocalls and data enrichment actions. And the results? "They exceeded our expectations", according to credit manager Cor Möller. "Mail to Pay's collection process performs much better than our own process."
"Payments are received six days faster on average."
With over five million private and business customers, Nationale-Nederlanden is one of the largest leading financial service providers in the Netherlands. The Mail to Pay tools used by the organisation are currently used for customers of their Life devision. These customers have taken out life insurance policies with Nationale-Nederlanden or one of its subsidiaries. "If customers don't pay the premium within the prescribed period, it has direct consequences for the insurance policy, explains Cor. "To prevent this, while also reaching our customers better and offering more payment convenience, we have now set up a new collection process with the help of Mail to Pay".
Consistently smarter through machine learning
The collection process starts at Nationale-Nederlanden. "We begin by sending a reminder e-mail or letter to the customer at a fixed time," explains Cor. "If an outstanding invoice is twenty days old, it is transferred to Mail to Pay in the twenty to one hundred day phase. There, it goes through an automated process based on machine learning. In this process, the Mail to Pay software then examines the payment behaviour of our customers and decides the timing and resources which should to be used to achieve the best result. When and what time did the customer pay last time? And was that after a text message, a phone call or an e-mail? The system learns from this over and over again, so it's continually getting smarter and smarter".
Mail to Pay performs better
"To assess how well the Mail to Pay software works, Nationale-Nederlanden compared the results of its own collection process with those of the Mail to Pay process. "This showed that the Mail to Pay collection process performs much better than our own. On average, payments are recieved six days faster. Since we have been using Mail to Pay software, the number of cancellations due to nonpayment of premiums has fallen by 52 percent."
The great results are mainly due to the modern tools that Mail to Pay offers, says Cor. "Take the Robocall. The computer calls the customer and during this call the customer can pay directly via iDEAL. This works very well and we honestly didn't expect that. As a customer you get a call out of the blue and then you hear a robotized voice on the other side of the line. We thought that we would get some complaints about this, but we haven't heard one yet. And even better, 25 percent of the customers who are 60 days behind on their payments and are reached with the Robocall, still pay within ten days. That reminder, combined with the online payment convenience, without having to give an explanation - it just works. Our results in our old process were a lot lower in this phase of the reminder process. The results are so good that we are gradually moving all our life insurance policies to the collection process with Mail to Pay. If all goes well, the machine will then become even smarter and customers' payment behaviour will improve even further."
"More than sixty percent of the contacted customers switched to digital communication or direct debit."
Data enrichment and approaching large customer groups
Mail to Pay also helps Nationale-Nederlanden with data enrichment actions and with campaigns involving large customer groups. For example, the campaign to have customers who receive a paper invoice with an 'accept giro' slip switch to digital communication or direct debit. Mail to Pay took care of the messages, built the landing page where customers could submit their choice and delivered the mutation processing files containing the customers' choices. "That was a highly successful campaign," reflects Cor. "More than sixty percent of the 'paper' customers switched to digital communication or direct debit. Soon we're going to run the same campaign for the Delta Lloyd policies we took over over last year."
"""The employees often immediately understand why you say things and what you mean. They also know very well what our needs are and the needs of our customers."" "
A successful collaboration
In addition to the impressive results achieved by Mail to Pay for Nationale-Nederlanden, Cor is very pleased with the cooperation. "Mail to Pay is a flexible, agile organisation; the lines of communication are short. If we have contact today about a change in the system, it will be arranged tomorrow, so to speak. I find that such a relief. What's more, it makes it much easier to implement a change. If something doesn't work properly or there are complaints, you can quickly make adjustments again."
"In order to keep the cooperation running as smoothly as possible, there is a meeting every week about the progress of current projects and a more in depth monthly meeting at Mail to Pay. "The meetings always have a good atmosphere" says Cor. "The employees often immediately understand why you say things and what you mean. They also know very well what our needs are and the needs of our customers. Because in the end, everything we all do is for the customer. They know that very well at Mail to Pay."
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