FIELD SERVICE

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FIELD SERVICE COLLECTIONS Butch Brown Charter
Communications Inc. Credit and Collections
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Accounts Receivable and Bad Debt Risk Management
Cycle

• Sales/Marketing
• Debt Sale Credit Assessment
• 
  ID
  Verification
• Unreturned Equipment
• 
  
  
• Vendor Mgmt
  METRICS Multiple Statements
• Credit vendor
• 3rd Party Agency
• Field Collections
• 
  
  Collections Timeline
• Collection Metrics
• Gross Write-off
  Collections Tactics
• Allowance
  Non-Pay Churn
• Bad Debt Expense
  Account Aging
• Collection Expense
  Retention

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The Operational Fundamentals

• Timeline vigilance
• Entry into Collection until Write-off
• Collection Tactics/Retention
• Telephone calls (Outbound/Inbound)
• Letters (T-gram/Billing System generated)
• Field Service (Door-to-Door)
• Agency Placement (Credit reporting)
• Credit Policy
• Pre-qualification
• Recovery of Dollars and Equipment
• Field Service Contractors
• Recovery Program

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The METRIC Fundamentals

• Operating Cash Flow
• Bad Debt Expense
• Collection Expense
• Allocation/Provision/Reserve
• Non-Sufficient Funds
• Bankruptcies
• Equipment Loss
• Subscriber Growth
• New Account Distribution by Risk Score/Credit
  Class
• Non-Pay Disconnect as a percent to total Basic
  Subscribers and as a percent to total
  disconnects.

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Operational Fundamentals Field Services

• Experts in Face-to-Face Customer Contact
• Backed by a rapid implementation plan supported
  by a solid infrastructure

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Operational Fundamentals Field Services

• Advantages of Outsourcing Field Collection
• Collect on past due accounts with emphasis on
  saving customers.
• Retrieve valuable equipment prior to disconnect
• Reduce costly truck rolls
• Able to meet quotas and reduce the burden of
  routing scheduling
• Installers free to connect new customers and
  upgrade existing ones
• Technicians able to devote time needed for
  critical plant maintenance

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Operational Fundamentals Field Services

• Direct Customer Contact
• Improved Save Rates (Churn)
• Improved Bad Debt
• Prevent Migration to Competitors
• Impact Operating Cash Flow
• Non-Pay Disconnect statistical feedback

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Operational Fundamentals Field Services

• Direct Customer Contact
• Working methodically over non-traditional hours
  field reps will make repeated attempts to find
  your customer at home.
• Performance based contract that prioritizes
  collection of funds and customer saves.

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Operational Fundamentals Field Services

• Improve Save Rates (Churn)
• Save rates historically exceed 58
• at the door and coupled with another
• 12 of customers who pay on their own
• translates to more than 70 who remain
• as customers in good standing.

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Retention Rates to Total Disconnects
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Operational Fundamentals Field Services

• Improve Bad Debt
• Bad Debt is a function of aging and write-off.
  Door-to-door collections reduces aging and saves
  customers from write-off.

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Operational Fundamentals Field Services

• Prevent Migration to Competitors
• Reversing customer loss due to non-
• payment coupled with the acquisition of
• new customers equates to substantial
• customer net gains.

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Operational Fundamentals Field Services

• Impact Operating Cash Flow
• Once a customer is disconnected for non-payment
  it becomes more difficult to re-acquire them.
• Saving customers maintains steady cash flow
  and dramatically reduces costly truck rolls for
  disconnects.

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Operational Fundamentals Field Services

• Non-Pay Disconnect
• Statistical feedback
• Theft of service
• Identification Theft
• Direct Sales penetration rates
• Improved telemarketing

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Operational Fundamentals Field Services

• Training
• Ongoing corporate field training classes
  provide all personnel with detailed industry
  data, product knowledge proven sales techniques
  and acceptable technical and safety standards.
• Compliance
• Requires that all reps have a complete
  background investigation, submit insurance
  verification and are OSHA/EEOC/FCRA compliant.

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Operational Fundamentals Field Services

• Reporting
• Electronic reporting enables field managers to
  compile data deploy reports to the corporate
  office.
• This allows the Company to maintain the highest
  standards of proficiency and provides a mechanism
  for immediate corrective action.
• Quality Control
• Random daily validation of work completed by
  sales and technical field personnel.

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Operational Fundamentals Field Services