Case Study: Metropolitan St. Louis Sewer District achieves 69% reduction in bad debt provision and 30% increase in collections with Vertexone

MSD and Vertex Tackle a Bad Debt Problem with Predictive Analytics

Metropolitan St. Louis Sewer District (MSD) was facing rising bad debt—growing by $3.5M annually—even though it collected 97% of billings and could not shut off service to delinquent customers. MSD engaged Vertexone to conduct a Credit & Collections Assessment and deploy its VertexOne debt collection analytics and predictive analytics to reduce bad debt provisions and days sales outstanding.

Vertexone implemented predictive analytics to score customers, targeted multichannel communications, expanded IVR self-service and paperless billing, launched a long-term outbound recovery program, and established performance management reporting. Since September 2011 MSD has seen a 30% increase in collections on delinquent accounts, a 79% reduction in accounts assigned to collection agencies, a 57% drop in agency commissions, a 69% decrease in bad debt provision, about 19,827 fewer accounts entering arrears monthly, and a 21-second reduction in call center handle time.

Metropolitan St. Louis Sewer District

Jan Zimmerman

Director of Finance