CREDIT MANAGEMENT
There ’ s Need To Provide Better Customer Service In Collections
By Wasilwa Miriongi
If you are using the right technology solutions to enhance your operations , you can improve your profitability , improve cash flow and yet deliver better customer service in collections .
It is apparently clear debt collection agencies need to improve their profitability while providing strong customer service to retain and grow their client base . In order to achieve these goals , collection companies must provide better customer service in collections , enable strong self-service , and have operations that support continual improvement towards achievement of their goals .
For those that outsource collection , they always have a reservation that they are losing a key touchpoint with their customers , and are concerned over whether the collections agency will keep customer relationships front of mind during all communications . In many cases , though , outsourcing will not only preserve customer relationships , it can actually enhance them . What should please many is recent technology advances have made this not only possible but cost-effective . We may look to better customer service in collections in the
74 MAL51 / 22 ISSUE following ways highlighted here-under :
Having automated portals accessible to customers
The reality is borrowers do not want to talk with their lenders directly , most of them know they owe the money , and they want to determine the easiest , least painful way to repay their debt . They also want to interact on a 24 / 7 basis on their schedule , often from their mobile phone .
A consumer portal can allow people to check their balance , make payments , enter payment agreements and where permitted negotiate a settlement without human interaction , we have enabling technology for this . From experience , when people interact with collections through a selfservice channel or portal , they have a higher level of customer satisfaction hence promises taken on a portal generally have a lower default rate than those taken by a collector , which also frees collection staff to work on other critical cases . You must realize this does not apply to everyone as it
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Behavioral studies have proven that different people react better or worse to different messages . There ’ s an opportunity to use your case management system to test different communications and frequencies on statistically significant samples of your consumers to allow you to determine the most effective communication strategies . is common with a certain age bracket .
Use of text message to communicate effectively
Letters and traditional phone calls are relatively expensive . It is important to note that younger consumers are less likely than their parents to open their mail or pick up the phone . However , the number of people who respond to text messages is growing . You get their attention within seconds and can get immediate feedback from the consumer .
There are many user cases where text messages are appropriate . If you can get a consumer to agree to receive text messages upfront ( with consent ) then your initial contact can be made through a text message at a fraction of the cost of a letter or phone call and with a link allowing the consumer to make a payment right from their phone .
The better use of predictive and prescriptive models
It is now common that you find that collection companies treat everyone the same way , or everyone with a similar balance the same way . That is not the most efficient or effective way to collect ; not all consumers have the same likelihood of repayment , and not all consumers will respond to the same messages . Predictive and Prescriptive Models which are built using your data are highly predictive and allow you to segregate accounts so they can be worked more effectively . Organizations can focus their energies on the accounts where they are most likely to have success , can be less intrusive for accounts where they are likely to self-pay , and can accelerate accounts that