2Way-ConnectSM Delivers Real-World Results

First Data has made it easier than ever before to contact your customers anytime, anywhere. Which means you can improve marketing results, reduce fraud losses dramatically, optimize collections results and build stronger and more valuable customer relationships. With 2Way-Connect,SM you choose the best method to contact your customers and employ its auto-resolution messaging and response capture technology to quickly engage customers. First Data’s 2Way-Connect gives you the power to reach customers when you need to in the most efficient and cost-effective manner.

The following case studies provide examples of the powerful results 2Way-Connect has delivered to three companies.

Solution: Credit Card Collections

The situation…

During the past five years, credit card delinquencies have continued to be a challenge. Economic conditions have not improved as quickly as many had hoped. Plus, late or missed payments on credit cards are considered a key indicator to gauge a consumer’s economic health.

In this solution, a credit card issuer was concerned that delinquencies were growing compared to the same period as the previous year. The increase was most noticeable in the early delinquency cycle (30-60 days) and in accounts that were over their credit limit. Collection department management was attempting to transfer resources to the area, but was having difficulty due to high turnover rates with the less experienced staff assigned to contact customers in these queues. Generally an issuer pursues approximately 10,000 delinquent customers at any given time and achieves a daily contact rate of 18 percent.

The challenge…

The challenge was to increase the percentage of right-party customer contacts and recoveries with reduced staff to lessen delinquency rates in the card portfolio. Collection management had to explore new technologies to enhance productivity and increase recoveries without requiring additional staff.

The results…

By utilizing First Data’s 2Way-ConnectSM solution, the issuer was able to match the current performance of collections personnel in terms of “promises to pay” and “promises kept” rates and achieved the following:

  • Substantially reduced the number of collections FTEs needed to contact customers in the early delinquency queue;
  • Generated FTE cost savings to recoup start-up costs within two months;
  • Delivered a detailed audit trail of contacts and customer interactions integrated back into the client’s existing reporting database and cardholder management system.

Solution: Credit Fraud Detection

The situation…

For years, a large credit card issuer had successfully used First Data’s Falcon fraud detection system. However, the company was constantly on the lookout for process innovations that could improve fraud detection rates. Recently, unauthorized Internet transactions were a problem, which impacted the issuer’s customers and increased fraud claims. Traditionally, the issuer’s fraud prevention staff had reviewed and contacted only customers in higher risk fraud queues (those with scores in the 800-999 range).

The challenge…

Accounts that scored in the 600-800 range (roughly 2,000 accounts per day) were being ignored because of staffing constraints. The theory was that they would eventually score higher (800-999 range) and then show up in queue to be reviewed by a fraud analyst. This was the pattern for the increasing Internet transaction volume. However, this also meant that each fraudulent transaction would inevitably carry a higher dollar exposure per account by the time it had progressed to the 800-999 range.

The results…

Rather than wait until the account scored in the higher range, the issuer implemented the First Data 2Way-ConnectSM solution. The First Data team created a customized system for the automated delivery of fraud verification alerts directly to cardholder’s telephone in conjunction with the Falcon system. The solution detected fraud cases earlier and led to substantial success and savings:

  • Achieved an ROI of 333 percent;
  • Recovered issuer’s total start-up costs in just 60 days of implementation;
  • Implemented 2Way-ConnectSM solution to initiate calls for the 800 queue as well.

Solution: Return Card Marketing

The situation…

Competition for acquiring and keeping credit card accountholders has intensified across all markets. As a result, card issuers have begun to scrutinize every aspect of their operation in hopes of wringing out every last ounce of efficiency.

The challenge…

In large operations, thousands of cards are “returned to sender” each month. Tracking down these cardholders and confirming their correct address is time–and resource–consuming. There’s added urgency since every day the cardholder is without their card represents potential lost revenue for the card issuer.

The results…

This issuer implemented the First Data 2Way-ConnectSM solution to automate customer contacts and increase re-mail rates. This solution exceeded the prior performance of call center representatives, in terms of contacts made and returned calls from voice mail messages. As a result, the department was able to cut the time from three to four weeks in their existing environment to just three to four days with 2Way-Connect. Also, this greater reach resulted in an increase to 61 percent of accounts re-mailed. These results have led the department to implement other auto-resolution services in the areas of emergency card reissue notification and cross-sell verification/confirmation.

  • Reduced the time of re-mailing from three to four weeks to three to four days;
  • Increased re-mailing rate from 36 percent to 61 percent;
  • Generated substantial FTE cost savings and revenue increases, thus recouping start-up costs within two months;
  • Substantially increased income revenue due to quicker transactional usage.

Solution: Interactive Alerts

The situation…

One client says their success is measured by getting their customers to respond to time-critical information. Especially when they have outstanding and overdue balances. This client needed a way to work more accounts more effectively.

The challenge…

Like many, this client did not have the IT capabilities, resources or internal live operators available to handle the situation.

The results…

By deploying the First Data 2Way-Connect,SM they were able to prompt customers to activate and use their newly issued cards through a proactivation campaign. After accounts were activated, they were able to provide balance transfer offers. 2Way-Connect is also helping them grow current accounts by delivering new offers and providing cross-sell products. They are retaining more customers with fraud verification, collections payments and customer notices. Plus, First Data is making it possible to:

  • Allow customers to make immediate payments through a plus-connect to a live agent;
  • Grow the average payment from 23 to 35 percent of the outstanding balance;
  • Ensure the right messages reach the right customers at the right time.

Connect with opportunities

Whether you need to improve collections, increase fraud detection or automate customer contacts, First Data’s innovative customer communications capabilities, like 2Way-Connect, help you deliver the right message, to the right customer, at the right time.