Leveraging AI and Predictive Analytics in O2C

Data from SSON Research & Analytics reports that Order-to-Cash (O2C) is the second most popular service provided by 66% of surveyed SSON members. The widespread acceptance of O2C in shared services suggests the process is posed to be the next focus of customer-centric service delivery.

In order to discuss the potential for driving a strong customer experience in O2C, SSONext welcomed three senior leaders from Sidetrade. During their 30-minute conversation with Jordan Mullins, Head of Editorial for SSON, conversation topics varied from the emergence of a 'secondary' customer, the relationship between customers and cash applications, and how organizations can leverage AI and prescriptive analytics for better collection outcomes. 

Leveraging AI and Predictive Analytics

Elodie Ravochal, Senior Product Manager for Sidetrade, understands the need for O2C teams to bring in solutions that ease the burden on collections and increase an organizations working capital. 
During the podcast, Elodie explained how O2C teams can utilize AI and predictive analytics to drive better cash outcomes. 

Elodie emphasizes the importance of analyzing the payment behavior of customers. By leveraging AI algorithms embedded in cash collection solutions, teams can differentiate between good and bad payers, leading to improved collection outcomes.

It is also important to highlight the significance of data-driven decision-making in the collection process. AI and predictive analytics consider factors such as payment history, customer predictive analytics, and team workload to generate recommended tasks for cash collectors, making their work more efficient.

Besides data-driven recommendations and understanding payment behaviors, and predictive analytics are also helping O2C teams establish customized collection strategies, resolve payment disputes, and improve case management capabilities.

Relationship Between Customers and Cash Applications

A pleasurable customer experience is essential for any organization, and by utilizing the latest cash applications businesses can ensure a strong relationship continues into the future.

Kurtis Heister, VP of Product – Strategic Growth for Sidetrade, explained that cash application teams and technologies perform actions that help the business get paid, apply cash, and operate smoothly. Kurtis mentioned that cash application teams and shared service teams have two types of customers. The first type is the end customer, the one who receives the products or services provided by the business. The second type of customer is the internal stakeholders or the business itself.

From an internal stakeholder perspective, cash application has a significant impact on various teams. For example, the credit team relies on cash application to release customers from credit hold as soon as their payment is received and applied. The collections teams also depend on timely cash application to avoid performing dunning actions on invoices that have already been paid. Sales teams are interested in knowing if their invoices have been paid so that they can receive their commissions. Field agents who interact with customers directly also need up-to-date payment and invoice information to provide a positive experience.

From the external customer's perspective, cash application is a crucial final touchpoint in the business transaction. Customers expect that once they have made a payment, the transaction is complete. However, delays or inaccuracies in cash application can cause frustration and negative interactions. Slow cash application or incorrect application of payments can lead to customers seeing inaccurate information on portals or payments being applied to the wrong accounts, impacting multiple customers.

“We're really taking the approach of evaluating not only how that buyer interacts with you, the vendor, and how they pay,” Kurtis said. “But we're actually learning from how they interact with all vendors within the network because if they're using those payment systems, they're typically paying vendors in the same way.”

Enjoy the audio medium? Interested in learning about the emergence of the “secondary” customer? Be sure to check out the full SSONext podcast on Spotify or Apple Music.