Including digital in your collection strategy

How to include digital in your collection process

Debt collection companies are investing in digital techniques and technology.  But what exactly is digital collections, and why does it matter?  Digital collection is the use of real-time intelligence and customer signals to deliver a personalized experience when paying a debt or bill using digital channels i.e email, sms text, web chat or web portal to interact with consumers where they want to interact and deliver on their needs.

It matters because done correctly it provides an improved customer experience for paying bills and interacting with a past due debt, which can eliminate frustration, complaints and even litigation, and by lowering the cost of agent interaction, open opportunities for ARM companies to collect accounts that were previously below the profitability threshold.

 

The relationship organizations have with their customers these days is very much a digital one – which is why a digital approach should also apply to debt recovery.

Things to consider when looking at digital collections

Understand your inventory

Segmenting for efficiency and where digital makes sense, small balance accounts, or straightforward bills that require little or no explanation are good candidates for digital strategies.  another potential target for digital , high complaint related debt.  Look at the demographics and engagement type of these complaints to find opportunities to reduce friction and improve satisfaction.

Understand the consumer

Analytic based profiles based on age, digital propensity, recovery probability, efficiency of outreach, and risk exposure to better understand what channels to offer the customer.  Digitally savvy customers prefer self-serving online channels.  Debt collection companies need to identify the right mix of channels to improve the customer experience, while keeping the experience similar across the channels offered.

Understand your risk exposure

Most of the risks introduced in debt collection are process or people risks, for example, not sending a notice that a person was legally required to send, or an agent saying something on the phone they weren’t supposed to.  Digital can help lower these risk areas. 

Shift to your mindset to engagement

Adding engagement metrics to your KPI list will help understand more about the overall customer experience.  Things such as page views, bounce rate, abandonment rate where they left your site, time on page, new vs returning visitors, and conversion rate

Audit your platform

  Transforming your CMS into a digital experience platform incorporating Unified Communication (UC) and connecting different communication systems for the digital workforce, to enable you to  leverage the idea of reaching across channels for the full spectrum of end-to-end customer engagement.

Check your website and payment portal
  • Think Mobile, Think Simple
  • Utilize a consumer focused landing page (Customers should be able to decide how to interact in under 10 seconds)
  • Less is more on the required input and number of terms and conditions  Remove Friction
Engage the customer where they want to engage

Consumers have come to expect best-in-class user experiences from all their online and mobile interactions. Consumer experiences with any product or service now shape demand in the digital world. Customers not only compare your offerings only with those of your direct rivals; their experiences with Amazon have set a new standard. People are growing accustomed to having their needs fulfilled at places of their own choosing, on their own schedules.

Today, digital transformation is not just a competitive advantage — it’s a lifeline between the brand and the customer. Brands that have not made enough progress on their digital channels could be missing out on significant revenue opportunities. ~ Forbes 

Learn More

Digital transformation will continue to evolve at a faster pace.  Get in front of the curve and learn more about this important differentiator including links and resources join the discussion at  

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