Digital processes and communications are all around us, but why are they important in the collections process?
Many young people rely on credit – whether it’s a student loan, car finance, credit cards or overdrafts. To connect with this new generation of borrowers, lenders need to introduce and embrace digital processes, and that includes adapting existing collections techniques. The result? Maximised repayment rates and increased customer satisfaction as customers interact according to their individual communication preferences.
Introducing interactive electronic and mobile communications can speed up the collections process for those who prefer these channels and methods. Customers can respond to emails or text messages instantly, to make online payments or even clear their account completely. With this functionality, comes a reduced reliance on on-hand staff and paper-based communication, resulting in reduced operating costs as well as reduced negative impacts on the environment.
While there are many strong benefits to be experienced from a movement to digital techniques, there will still be a place for traditional methods. Meeting the needs of a varied customer base involves an evaluation of processes and customers’ needs and preferences, which may require significant changes to existing systems. However, in order to remain adaptive, the investment of time is worth it.
Our steps to embracing a digital collections strategy
1. Communicate with customers on their terms
Segment different customer groups and use both individual and peer data to determine the most appropriate communication for each person.
2. Provide a standardised service experience across multiple channels
Strive to provide the same high-quality experience for customers, whichever channel they use to interact with you.
3. Increase success with interactive communications
Maximise the potential of multi-channel communications to deliver interactive messages and speed up customer responses. You can do this by combining different communications channels to increase success rates, for example text messages alongside voice calls to a customer’s mobile phone.
4. Empower customers with self-service
Offer intuitive tools for customers to make payments or clear their accounts online.
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 about automating collections processes.
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