When customers are empowered by digital experiences specific to their needs, the debt collection process is seamless and pain-free
It is time for the debt collections industry to go beyond digital by offering customers an intelligent personalised experience with a full range of access points and options to resolve debt on their terms.
By Anshuman Panwar
Sending emails or text messages, or hosting a digital payment gateway, does not add up to a truly intelligent digital collections strategy. It is time for the debt collections industry to go beyond digital by offering customers an intelligent personalised experience with a full range of access points and options to resolve debt on their terms. Changing customer expectations and regulatory mandates are forcing lenders to take a holistic approach. Here are the factors driving this change:
Personalisation for a unique experience
Personalised consumer experience today is ubiquitous and consumers expect relevant communication. It drives consumer expectations higher and compels lenders to use AI algorithms that respond to consumer engagement in real-time. This creates the need for personal experiences at each point in the customer journey, from initial communication to the final resolution. Personalisation communications tailormade for specific personas drive 40-60% higher engagement rate.
Empowering customers digitally
When customers are empowered by creating digital experiences that are specific to their needs and preferences, the debt collection process becomes seamless and recovery rates are better. Consumers today are self-motivated to become debt free. Lenders should adopt a collaborative approach in offering customers every opportunity to find a solution.
Demand for superior value
Customer loyalty is no longer driven only by price, product, or service. Customers seek value in every communication and engagement. Drawing on data and analytics should help lenders devise customer-centric strategies to drive contextual interactions, thus making repayment more manageable and holistic.
Mitigate compliance risk
Compliance regulations in the debt collection industry are designed to protect consumers from intimidating practices. The debt collections platform should have built-in protections against compliance risk. Practices ranging from creating compliant communication to having an experienced in-house legal team that oversees all engagement are vital for compliant collections.
The writer is co-founder, Creditas Solutions
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