Interest rates are currently stable. Great news for now, but what about when they rise – are you prepared?
An increase in interest rates will affect consumers in different ways. To cope, some will just need to make small adjustments to their outgoings, with minimal impact on their daily lives. However, some people will seek more drastic solutions and may struggle to keep up with their credit agreements. For example, those on variable rate mortgages could be hit with changes that dramatically affect their monthly outgoings. If something has to give in order to accommodate, what gives? They may be at the limit of what they can currently afford, and therefore could find themselves in a very different position from where they are today.
Being prepared for potential spikes in collections demand is essential to maintaining an agile and responsive organisation. Our four steps to a more automated process may seem simple, but could make all the difference when it counts.
Build a more efficient, automated collections process
1. Streamline ‘early stage’ collections
Use scoring and segmentation tools to identify those accounts which have the highest payment potential. These accounts are likely to need less human intervention, allowing you to clear them cost effectively, freeing up time for more complex cases.
2. Monitor customer accounts
Track accounts over time to understand when a customer’s ability to pay has improved. You can then use this information to intervene and collect unpaid balances at the most opportune time for your customer.
3. Give customers self-service tools
Help your customers to manage their accounts online. An online portal can enable them to make secure payments, set up Direct Debits and create payment plans without any involvement from your team members.
4. Standardise the service experience across multiple channels
Ensure that customers get the best service by standardising the experience, based on the same key steps and the same rules and requirements to ensure consistent behaviour.
Why not download our recent collections whitepaper, addressing the top five challenges facing collections professionals today? Each challenge is coupled with a practical step-by-step guide to help you to optimise your collections strategy and deliver the best customer experience possible – for example see my previous blog around treating customers fairly through the collections process.
To find out how our debt management products and consultancy services could help you to improve the customer experience while maximising business outcomes, please contact our collections team on 0844 481 5872 or email email@example.com