Strategy for Delinquent Account Management. Public Water and Sewage Company. Puebloviejo, Ecuador

Abstract

Designing a strategy for managing the delinquent portfolio of the Public Water and Sewerage Company of Puebloviejo, Ecuador was the objective that motivated this research. The study identified a delinquent portfolio exceeding $380,000, which represents 38% of the average annual billing, with a collection rate of 18%. For this study, 357 users and 35 employees were surveyed, interviews were conducted, and focus groups were developed, which substantiated the diagnosis of the main causes of the problem. As a result, the existence of manual and slow processes was revealed, along with collection policies that applied uniformly to all customers, and the need for more effective staff training. It was also significant that over 50% of users were uninformed about the management processes. Based on this diagnosis, a strategy articulated around four fundamental pillars was proposed: modernizing and automating processes; strengthening communication and follow-up with users; improving information management and team training; and creating segmented credit policies tailored to the reality of each user type. Through the implementation of this strategy and rigorous follow-up, the company can achieve ambitious yet attainable goals by 2027: an effective collection rate of 95%, a 30% reduction in uncollectible accounts, and a 40% increase in user satisfaction.