REVIEWER: Shawn Farris, CACi chief financial officer.

BACKGROUND: CACi is a privately held Missouri corporation providing first-party precollection treatment, third-party collections, insurance billing and follow-up, client site staffing solutions, client educational seminars and ancillary services. We will be licensed in all 50 states by late 2008, allowing collectors to conduct interstate collection efforts without the need for costly and time-consuming forwarding arrangements.

PLATFORM: Microsoft Windows.

PROBLEM SOLVED: CACi enjoyed modest success in growth from 2002 through 2006. By the end of 2006, growth was stagnant. We were expense heavy and performance light. Cash-flow poor and threatened with staff layoffs to reduce expense, we knew we must manage our business and our collections portfolios differently. The hard work began when we sat down with the experts from Intelligent Results, now part of First Data. Together we thoroughly analyzed our performance data to better understand our successes and what we needed to improve. As we built methodology for scoring individual accounts, our number one objective was to collect on more accounts because collection improvements equate to additional revenue. With the use of PREDIGY, we’ve recognized a 13 to 17 percent improvement across portfolios. We expect additional profit in our next phase as we expand to include more portfolios and focus on efficient use of allocating resources to reduce cost.

PRODUCT FUNCTIONALITY: PREDIGY has not only facilitated an increase in revenue by portfolio but also provided an opportunity to limit our expense to recover for clients. Taking costs into consideration before the first letter is mailed or phone call made is a powerful edge for our agency. Prior to PREDIGY, we did a lot of guessing on what accounts should get additional efforts. We now have the ability to study a placement upon insertion into our collection software. We can make real decisions based on our own data, allowing us to predict a return on each portfolio and facilitate better relationships with our clients. We can show clients why additional efforts may be needed or why a particular placement may be underperforming. PREDIGY also allows us to change or enhance decisions in real time, facilitating communication between our executive team and operations management. Our management meetings are no longer a debate about what our collection data says.

STRENGTHS: Without a doubt, a primary strength of PREDIGY is the ease of use. This is an elegant product that it is easy for business leaders and operational users to understand. You do not have to be a statistician in order to pull the powerful levers of data analysis and data-driven decisions. PREDIGY provides us with the ability to take data, including text data, directly from collectors and determine its value to our work flows. We can combine internal data with data from other vendors to determine what adds the most value in recovering the account.

WEAKNESSES: PREDIGY is not integrated into our collection software, thus the dependence on our internal I/S staff slows the process to release models. It has been difficult to achieve real-time reporting and application of workflow.

SELECTION CRITERIA: CACi originally selected First Data on the strength of their ability to help us build models relevant to improving our business. Pro forma ROI was compelling. Unexpectedly, though, First Data forever changed how we view our vendor relationships. They set a new high bar for what it means to be a business partner.

DELIVERABLES: Scoring models delivered from PREDIGY are easy and straightforward to process. The reporting output of PREDIGY is evolving for our business, because we are still in the early stages of leveraging PREDIGY’s outcome reporting.

VENDOR SUPPORT: First Data’s focus both pre- and post-implementation is consistently diligent. The team demonstrates a complete understanding of PREDIGY and the business value it brings, and they distinguish themselves with a highly contagious passion for what they do.

DOCUMENTATION: The PREDIGY documentation is presented clearly, with study exercises that brought us up to speed quickly. SQL education would be an additional helpful resource for formatting data for input.

PREDIGY
First Data
6200 South Quebec Street
Greenwood Village, CO 80111
(303) 488-8000
http://www.firstdata.com/

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