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AI is humanizing collections – here's how

Written by Carol Byrne | Aug 27, 2024 9:32:20 AM

Artificial intelligence (AI) is changing how firms manage customers in collections. But AI is achieving this in ways that go beyond numbers and efficiency metrics; it’s helping organizations better understand and support people facing complex financial difficulties.

In an era where personal debt is rising and financial stress is a reality for many, AI is emerging as a powerful tool to help handle collections with care, empathy, and precision. 

Understanding your customers beyond the numbers 

Your collections strategy must prioritize customers with unique circumstances, challenges, and needs. But traditional collections methods can fall short when it comes to capturing the full picture of a customer’s situation; It’s too commonplace for teams to look at customer data in a CRM that's hardly a reflection of real life. AI, however, analyzes a wide range of data points to gain a complete and holistic understanding of each customer.

This kind of insight allows your collections team to approach each customer with a unique solution for their situation. Instead of a one-size-fits-all approach, AI makes it possible to offer personalized solutions that resonate with each customer’s specific journey.

AI lets customers clear on their own terms so that your team can focus on those that need support

AI empowers you to prioritize customer-centricity through self-service capabilities like chatbots and personalized portals. These tools are more than just automated responses; they’re about giving customers the power to manage their debts on their own terms. Imagine a customer who is stressed about making a payment. Instead of having to wait on hold to talk to a collections agent, they can use a chatbot to find answers, set up payment plans, or even resolve their debt entirely whenever it’s convenient for them.

This self-service approach empowers customers, letting them take control of their situation without feeling pressured or rushed. It also means that your collections team can focus their efforts where they’re needed most: on complex cases that require a human touch. By freeing up your team from routine tasks, they can spend more time providing the empathy and support that truly makes a difference in those tougher situations.

Configurable platforms: harnessing AI to humanize collections  

Configurable platforms play a crucial role in harnessing AI to achieve these more empathetic and humanized customer experiences. These platforms integrate AI-driven insights with flexible workflows, providing you and your team with the tools to adapt strategies to meet the needs of individual customers. Here are some key areas where a configurable platform can harness AI to humanize the collections process:

  • Personalized payment plans: AI can suggest tailored payment options that fit a customer’s financial situation, reducing stress and making repayment more manageable.
  • Early delinquency detection: AI identifies customers who might be at risk of falling behind and triggers proactive support measures to help them stay on track.
  • AI-powered chatbots: Seamlessly integrate chatbots that allow customers to manage their debts independently, freeing up your team to focus on more complex cases that require a human touch.

Humanize your collections processes with C&R Software 

AI is transforming debt collection by making the process more empathetic and personalized. C&R Software’s Debt Manager is leading this change by integrating AI into configurable, real-time workflows. Our platform provides organizations with the tools to tailor their strategies to individual customer needs, offering personalized payment plans, early interventions, and tailored communication that are both effective and compassionate.

By using AI to humanize collections, C&R Software can help your organization improve outcomes while treating customers with the care and respect they deserve. To find out more about AI in collections and how Debt Manager can humanize your collections processes, contact a member of our team today.