An empathetic and humanized approach to collections has become a main priority in the modern collections space. But you also need to balance the efficiency and effectiveness of your strategy in order to provide the support that customers need. The good part is that they are not mutually exclusive.
With any industry that provides customer service, brand loyalty is vital in ensuring their procurement and retention. For collections, brand loyalty has gradually become a focus with an industry-wide shift towards customer centric and humanized experiences.
The key to providing your customers with the best care is to use data-driven analytics to assign the right agency for them.
If every single customer is unique, why do so many agencies still try to collect debt in the same way for all?
The first step in supporting a customer through collections is understanding their situation through decisioning. How many times have they missed a payment? Do they have a history of delinquency?
The debt collection process is far from simple. There’s complexities to be found in handling different customers, their situations, and developing personalized treatment plans.
Customer relationships have not always been a primary focus in the collections industry. But this has changed in recent years with a significant shift towards customer centricity and humanized processes.
Historically, customer care has taken a backseat to other goals within the collections business. But recently, the positive relationship between humanized collections and better performance has become evident.
Customer Relationship Management (CRM) software has become a staple in recent decades for many industries. Banks, insurers and utilities companies have all adopted it to streamline their customer interactions.
There’s a growing number of people using credit and becoming delinquent. A report from the Federal Reserve Bank of New York states that American credit card debt is now over $1 trillion.
Customer communications are the bread and butter of the collections process. Building a reliable back-and-forth with your customers leads to mutually beneficial outcomes; you can improve collection performance and your customers can reach financial health.
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