Define Scoring Formula and Delinquent Strategy Assignments by Segment

You can use the Manage Collections Scoring and Strategy Assignments task to define the scoring formula and delinquent strategy assignments.

You must specify the segments and enter the detailed assignments in the Delinquent Strategy Assignments by Segment region under the Manage Collections Scoring and Strategy Assignments task. A segment is defined as a set or subset of various objects identified for scoring. The segmentation is implemented through each business unit and profile class, and define the segmentation for the Customer, Account, or Site business levels. For example, define the segment name Business Level + BU + Profile + High / Low Amount, for each segment including the default values.

Define the Amount Due Lower or Upper Threshold and the corresponding delinquent strategy groups to use when the amount due is below the lower threshold or above the upper threshold. You can define one, both, or none of the thresholds.

• Amount Overdue Lower Threshold: The lower threshold for the customer's amount overdue below which the Below Threshold Strategy Group is used.

• Below Threshold Strategy Group: The strategy group assignment when the customer's amount overdue is less than the Amount Overdue Lower Threshold.

• Amount Overdue Upper Threshold: The upper threshold for the customer's amount overdue above which the Above Threshold Strategy Group is used.

• Above Threshold Strategy Group: The strategy group assignment when the customer's amount overdue is more than the Amount Overdue Upper Threshold.

Here are the various scenarios to specify default scoring and strategy assignments:

1. Scoring and strategy assignments for various business levels: You can set up the default scoring formula and strategy group for all the three business levels. The scores are calculated based on the default scoring formula for the business level of customers, and delinquent strategies which are assigned based on the default strategy group for each business level.

2. Scoring and strategy assignments by business unit: The scoring formula is different based on your business unit. You can use different scoring formulas and strategy groups for the selected business units, and you can use one scoring formula and strategy group for the remaining business units.

3. Scoring and strategy assignments by profile class: The delinquent customers who belong to the different profile classes, and their scores are calculated based on the different scoring formulas and the strategies are assigned based on the different strategy groups.

4. Scoring and strategy assignments by amount overdue lower threshold: You can specify the amount overdue lower threshold for each business unit and the strategy groups for the below threshold. If a customer's amount remaining due is less than the amount overdue lower threshold, then the strategy group specified for the below threshold is assigned. Otherwise, by default the delinquent strategy group defined in the assignments is assigned.

5. Scoring and strategy assignments by business unit and profile class: The scores are calculated based on the various scoring formula for that specific business unit and profile class, and the strategies are assigned based on the various strategy groups.

6. Scoring and strategy assignments by amount overdue lower and upper thresholds:

   • If a customer's amount remaining due is less than the amount overdue lower threshold, then the strategy group specified for the below threshold is assigned.

   • If a customer's amount remaining due is more than the amount overdue upper threshold, then the strategy group specified for the above threshold is assigned. Otherwise, the delinquent strategy group defined in the assignments is assigned.