Dunning Process – Postpay

Telecom Industry
Syed Thameem
Big Worries for Telecom on Bad debts

In generally developing economies, only 5% of revenues are contributed

by the Postpay segment remaining are Prepaid.

This 5% itself posing big threat to telecom industries. Most of the Telcos
they don’t have proper Subscriber Risk Management polices and process.

Telecom industry is still vulnerable to threats in the form of Bad Debts. In

order to minimise the Bad Debts, Telcos need to take various measures /
steps in order to control it.
Telco’s should look for the valued customers and need to know the
customer well and carry out the vetting process independently.
 Customer categories

Customers grouped in 3 main categories:

A:
- No customers without 6 months history, Strategic customer, trusted customer, necessity
to maintain excellent relationships with customer.
- Credit limit: 3 months consumption maximum.
B:
- Important customer, corporate/SME by default. Excellent relationships with customer
important for revenue, market share and image
- Credit limit of one month based on the average of 3 months consumption. Customer will
be barred 60 days after invoicing. CD will be informed on day 45.
C:
- Corporate and SME: downgraded due to 2 late payments in last 6 months.
- Credit limit based on deposit. Customer will be barred 40 days after invoicing. CD will
be informed on day 45. restriction will be decided by CD after 70 days

- Others
- Credit limit based on deposit, restriction after 55 days
 Customer Categories

Customers grouped in 3 main categories:

A:
- Corporate: Mainly large multinationals, key embassies, large corporates, key NGO’s,
major financial institutions.
- Top 50-100 tax payers, special VIP’s (President), EXCO for large corporates

B:
- Corporates by default, other embassies, SME’s by default, NGO’s,
- (Informal) SME’s, International organisations e.g. the African Union, the British Army.
Celtel Supplier.
- Consumers: Senior management (private) & Ministers in office, reliable/upgraded
consumers

C:
- Others: other corporates, other SME, consumers
 DONT’s: Dunning process
-Avoid too many, too frequent contacts with customers

This Is A Real Life Celtel Example

1st 2nd 3rd 4th
reminder reminder reminder reminder

1 5 7 15 22 28 30
Days after
Billing run

Billing Bill Bill Customer Customer Customer Due date. 2

date ready dispatched receives receives receives options:
By SMS & SMS & SMS & Outgoing bar or
Corporate phone call phone call phone call negotiated
Sales Rep. deduction of
deposit to offset
against invoice
 DO’s: Dunning process for Category B

1st 2nd 3rd

reminder reminder reminder

0 30 days 45 days 60 days

January Reminder:1st Feb (2nd bill)
& 3rd of Jan (1st invoice)
30 Jan 28 Feb 15 March 30 March

1st
reminder

0 30 days 60 days
February

30 April 31 May 30 June

See appendix for detailed dunning process by category

 Implementation & Monitoring

CEO is the process owner; CEO signs off classification of customers.

CMO & CFO are responsible for the entire process

Principle players are:

– Corporate sales team: responsible for the accounts, needs to be involved in any
decision regarding their accounts
– Customer care agents (depending on the local process): responsible for the dunning
call and letters
– Credit controller: coordinates the dunning process, receives dunning report from IT and
dispatches to other players

Monitoring will be done with an aged analysis report by customer category provided by the
credit controller
Definition of aged analysis: overview of the debts based on specific dates, 30,60,90 days
after the usage of the month. See example on next page
 APPENDIX
- Dunning Process Category B

DD DD+15 APPENDIX DD+45 DD+60 DD+75 DD+90

Category A DAY 30 - Dunning Process Category A

DAY 45 DAY 75 DAY 90 DAY 105 DAY 120
open report Open dunning report and Open dunning report Open dunning report Open dunning report Open dunning
check for unpaid and check for unpaid and check for unpaid and check for unpaid report and check
customers. Check customers Check customers. Check customers for unpaid
Action 1 between credit control, between credit control, between credit customers
CC and corporate sales CC and corporate sales control, CC and
agents agents corporate sales
agents

Make dunning call 4

Make dunning call 2
Send an SMS Make a dunning call 1 Make dunning Call 3 Informing the customer Suspend the
and inform Contact
(automated) Informing the Contact Bar outgoing calls and of the date of Customer and
Person that we have
Informing the contact Person that we have not roaming/sms. suspension of the start the legal
not yet received their
person that we have yet received their invoice Contact Person that customer in 15 days. procedure
invoice payment and will
not received their payment. lines have been Print dunning letter 2
be barred in 15 days
Action 2 invoice payment and barred for outgoing The letter should
CD/Sales Rep/manager
due date is in 15 days calls and include Total Open
has 2 wks to manage
roaming/sms. Print amount
customer
dunning letter1 CD/Sales
informing the Rep/manager has 2
customer wks to manage
customer

Make a Note in Make a Note in Make a Note in Make a Note in Blacklist Customer
Action 3
customers account customers account customers account customers account
Inform CC Inform CC Inform CC the account Make a Note in
is to be deactivated in customers account
Action 4
15 days

Inform CC of the
Action 5
action taken
8

Action 6
 APPENDIX
- Dunning Process Category B
DD-15 days DD DD+15 DD+30 DD+45 DD+60

Category B DAY 15 DAY 30 DAY 45 DAY 60 DAY 75 DAY 90

open report Open dunning report and Open dunning report Open dunning report Open dunning report Open dunning
check for unpaid and check for unpaid and check for unpaid and check for unpaid report and check
customers. Check customers Check customers. Check customers for unpaid
Action 1 between credit control, between credit control, between credit customers
CC and corporate sales CC and corporate sales control, CC and
agents agents corporate sales
agents
Make dunning call 4
Make dunning call 2
Send an SMS Make dunning Call 3 Informing the customer Suspend the
and inform Contact
(automated) Make a dunning call 1 Bar outgoing calls and of the date of Customer and
Person that we have
Informing the contact Informing the Contact roaming/sms. suspension of the start the legal
not yet received their
person that we have Person that we have not Contact Person that customer in 15 days. procedure
invoice payment and will
not received their yet received their invoice lines have been Print dunning letter 2
be barred in 15 days
Action 2 invoice payment and payment. barred for outgoing The letter should
CD/Sales Rep/manager
due date is in 15 days calls and include Total Open
has 2 wks to manage
roaming/sms. Print amount
customer
dunning letter1 CD/Sales
informing the Rep/manager has 2
customer wks to manage
customer

Make a Note in Make a Note in Make a Note in Make a Note in Blacklist Customer
Action 3
customers account customers account customers account customers account
Inform CC Inform CC Inform CC the account Make a Note in
is to be deactivated in customers account
Action 4
15 days

Inform CC of the
Action 5
action taken
9
 APPENDIX
- Dunning Process Category C
DD-15 days DD
Category C: corporate,
NGO's and embassies DAY 15 DAY 30
open report Open dunning report and
check for unpaid customers.
Check between credit
Action 1
control, CC and corporate
sales agents
Make a dunning call 1
Send an SMS (automated) Informing the Contact
Informing the contact person Person that we have not
that we have not received yet received their invoice
their invoice payment and due payment. Contact Person
date is in 15 days that lines will be barred
outgoing calls and
roaming/sms in15 days
Action 2
CD/Sales Rep/manager
has 2 wks to manage
customer
Make a Note in customers
Action 3
account
Action 4
Action 5
DD+15 DD+45
DAY 45 DAY 70
Open dunning report Open dunning report and
and check for unpaid check for unpaid customers
customers. Check
between credit control,
CC and corporate sales
agents
Make dunning Call 2
Print Dunning Letter 2
Bar outgoing calls and
Informing the customer that
roaming/sms. Contact
they have been suspended
Person that lines have
Suspend the Customer and
been barred for outgoing
start the legal procedure
calls and roaming/sms
and will be suspended in
25 days. Print dunning
letter1 informing the
customer that he has
been barred
Make a Note in Make a Note in customers
customers account account
Inform CC Inform CC
10
 APPENDIX
- Dunning Process Category C
DD-15 days DD
Category C: others DAY 15 DAY 30
open report Open dunning report and
check for unpaid customers.
Check between credit
Action 1
control, CC and corporate
sales agents
Send an SMS (automated) Make a dunning call 1
Informing the contact person Informing the Contact
that we have not received Person that we have not
their invoice payment and due yet received their invoice
date is in 15 days payment. Contact Person
that lines will be barred
outgoing calls and
Action 2 roaming/sms in15 days.
CD/Sales Rep/manager
has 2 wks to manage
customer
Make a Note in customers
Action 3
account
Action 4
Action 5
DD+15 DD+45
DAY 45 DAY 55
Open dunning report Open dunning report and
and check for unpaid check for unpaid customers
customers. Check
between credit control,
CC and corporate sales
agents
Make dunning Call 2 Print Dunning Letter 2
Bar outgoing calls and Informing the customer that
roaming/sms. Contact they have been Suspended
Person that lines have Suspend the Customer and
been barred for outgoing start the legal procedure
calls and roaming/sms
and will be suspended in
10 days. Print dunning
letter1 informing the
customer that he has
been barred
Make a Note in Make a Note in customers
customers account account
Inform CC Inform CC
11
 Final Slide

Thank you

For more info contact: thamins@yahoo.com