It can be tempting to depersonalize debt collection, but companies should be doing just the opposite. This is especially true right now, when stress is at an all-time high for some of your customers, not to mention your own employees. It can be a boon to your company’s reputation as well as a way to foster the best customer experience and find compassionate ways to collect on debts.
The American Banker website has some advice for financial institutions that is applicable to really any type of business. One key takeaway? Consider the situations and circumstances of both your customers and your employees that may have to collect on those debts.
Thinking proactively
One of the first elements of the consumer relationship needs to be in place before a sale ever does. You need to have a system in place to identify a customer that may be at-risk to default on a debt. This will allow you to take the next step to put a plan in place for them to pay. Especially with the coronavirus response still in full swing, there are people who are still struggling financially or can’t quite get a handle on their own finances.
The article advises companies to “put in place systematic, data-driven customer engagement capabilities within the pre-collections and early collections journeys.” This includes implementing tactics such as payment plan options early on in the transaction.
The next consideration is all about tone — yours more than theirs. The article calls it “mindful messaging that balances empathy with performance.” The authors suggest avoiding the use of generic language loaded with legal jargon. Instead, provide clear and simple direction about next steps, with sensitivity in mind. It’s advised to limit calls for urgent action, too.
Finding the time and the right words
An interesting suggestion from the article concerns the use of AI-based language. One example they give is the phrase, “We’re committed to giving you extra peace of mind,” which works best in the pre-collections journey.
The final piece of advice pertains to call centers. As they get even more stressed and strapped for resources, it may be harder for businesses to keep up with demand. To that end, the article suggests a mix of self-serve channels to handle the regular calls, freeing up time for agents to handle the more sensitive or complex debt customers calls.
Following this advice and seeing debt collection through the lens of empathy can present opportunity for both you and your customers. At ARO, we know how to help you navigate this kind of conversation. We make it our purpose to reconcile debt with an approach that puts people first. Find out more about what we have to offer businesses on our website.
