Many people and households are still feeling on shaky financial ground, not to mention the small businesses world is starting to awaken after the topsy-turvy changes of the pandemic response. Even as the economic recovery continues, businesses should be thinking about ways to optimize their collections processes.
The news website The Financial Brand has published some great advice for businesses who want to stay prepared for whatever the future might bring with respect to collections. They offer insight into some ways organizations can think differently about customers as well as use technology to their advantage.
Thinking about the customer experience
In the past year, an empathy-centric approach to collections has been the expectation and businesses should expect that to continue. The move away from a more authoritarian model to one of offering support also means that enabling financial solvency is priority, according to the article. Restructuring debt and working on a manageable payment schedule are two of the methods cited.
It’s also true that a more empathic stance will help some customers pay their bills faster or earlier than others who may employ a less personal approach. The article makes the case that customers should:
- Receive personalized treatment
- Proactively receive assistance to prevent delinquencies
- Understand delinquency and its impact on their finances
- Be given choices for timing and method for payments
Embracing technology for better outcomes
With resources strained for most businesses, turning to technology has become a higher priority, and that is certainly true when it comes to collections. The article talks about “augmented intelligence,” in which companies use the latest tech in order to help empower their team and bring efficiency to the process.
Digital methods of collection have gained wide favor in the business world, and providing that option is key to faster and more complete payments. Using apps, the web, chats, texts and email to communicate with customers is now the norm.
Companies can also consider using higher-tech data analytics to help with collections. This includes programs which can help you pivot and respond faster to customer needs. Companies may also use certain programs to their advantage that allow them to more frequently monitor customers and where they stand with debt obligations. In turn, this helps mitigate risks or better assess the current volume of outstanding debt.
In short, this combination of high-tech and personal touch may lead to better improved results as well as a sense that you are truly doing the right thing for your customers and business at the same time. At ARO, we’ve made it our goal to bring empathy to the collections process while still helping businesses reach their fullest potential. Find out more about what we have to offer businesses at our website.
