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.
Hyper-personalization is becoming a popular term in the collections and recovery space. It represents an enhanced form of personalization that takes advantage of AI capabilities to provide a seamlessly data-driven and truly humanized collections journey.
Improved collection experiences directly lead to an increased likelihood of resolved debt. Not only are your customers more likely to engage with you again after they become current, but you’ll be better informed to develop personalized solutions through the increase of available data.
AI provides collections businesses with a range of tools and capabilities to both humanize the process for customers and enhance collection performance for credit issuers.
The UK’s Consumer Duty guidelines has established a standard of customer centricity for financial services. The goal of this humanized approach is more than just compliance, and more to build stronger relationships between businesses and their customers.
A one-size-fits-all approach to customer engagement is futile. Instead, you need to build an understanding of customer behavior to be able to guide individual accounts to financial health
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