Conduct Data Segmentation For Tenants

Better rent collection starts with smart data segmentation… 

As any collections agent will know, there’s no silver bullet for tenant engagement. Behaviours can differ greatly from one demographic to the next. That’s why it’s vital to conduct data segmentation for tenants, forming low or high-risk profiles in your database. 

A real-time arrears risk profile tells you which customers are struggling the most, and whether current solutions are working. By grouping customers together, you can change your collections procedure quickly and tailor your approach to each group. It’s the foundation of data management platforms for social housing. 

Your income collection tactics can be measured over time – in turn, improving your revenue and tenant relationships. Voicescape Collections clearly highlights who requires your attention and what should happen next. In short, data segmentation for tenants has never been easier.  

The layers of segmentation 

Segmentation can be as simple as recognising who’s in arrears and who isn’t. But for specific customer needs, you’ll want a greater understanding of your tenants too… 

Groups can be defined using any information that you have on the tenant – age, employment status, whether they have a partner or a child, and any claims for Universal Credit. When you link these factors back to existing payment patterns, you build a risk profile, pointing to people you should prioritise. 

Once you have this deeper insight into specific customer behaviour, you’re able to model and predict how to resolve their arrears faster. If phone calls, texts, letters or any other form of contact aren’t effective, change them. Then test the results.

Segmentation becomes  more specific over time. With more insights about what works for individual groups, you’ll have more reliable data that suggests how to handle tenant disputes, how to enhance tenant relationship management and ultimately, improve the collections process.   

How Collections creates segments

Tenant engagement software  does all the hard work for you. It’s consistent and automatic, so you don’t have to organise the customer behaviour data yourself. In Collections, segments are created from: 

  • A list of tenants in arrears.
  • The number of times we’ve tried to make contact with them on the phone, using a dial-in prompt that asks them to speak to your team about payment.
  • Real-time updates on tenant behaviour – whenever a call or message remains unanswered, the system logs it. 
  • An arrears risk profile that’s drawn from this information and anything else you know about the tenant. This can identify – for example – who may be missing calls such as older or more vulnerable tenants. 

In just a few weeks, you’ll have a firm idea of who isn’t paying as well as those who aren’t responding well to phone calls. Next, it’s just a case of viewing the high-risk groups and adjusting the ways in which you communicate with them. This is especially important for helping with rent arrears on universal credit and those with financial, age or health-related factors demanding more care or sensitivity. We suggest using randomised controlled trials for the most reliable test results. 

Case study – Salix Homes 

The earlier you can intervene, the faster you can stop arrears from becoming a problem. Salix Homes – a social housing agent based in Salford – learned this first-hand. They segmented tenants in arrears on Universal Credit, targeting them as a priority.   

This has helped Salix Homes to free up a significant amount of office resources, addressing more severe Universal Credit cases before they spiral out of control. 

With Collections implemented across their database, they can now treat any customer segment with the best response. The result? They’re never overwhelmed or in doubt about who’s at risk.

Uncover customer and tenant segments today 

Getting started is simple. Our Collections tool can analyse, split and monitor the data, no matter the scale of your housing agency. With a tweaked communication process based on individual groups and their needs, your relationships will be far more sustainable. And, when people feel listened to, they’re more inclined to stay longer. Not to mention the fact that you’ll have far less arrears to worry about. The key is data segmentation for tenants. But that’s not all…

  • Discover how we identify customer risk
  • Gain a greater understanding of tenants
  • Predict behaviours and prescribe action
  • See why randomised controlled trials are critical

Want to know how to engage with tenants and transform the management of rent arrears? Get in touch to find out. 

Contact Us