Banks and other types of organizations in the financial services industry must constantly be on the lookout for new strategies to improve customer retention. However, opportunities to do this are frequently missed when it comes to collections. Going the extra mile to deliver outstanding customer service throughout the collections journey has been proven to build a more loyal customer base and increase the lifetime value of individual customers.
Read on to learn how prioritizing customer engagement in the collections process can build this loyalty and the techniques and processes businesses can implement to achieve this.
How can the collections process allow businesses to build customer loyalty?
Collections departments are increasingly seeing the benefits of a more customer-centric approach for boosting performance. But improving customer engagement can also have far-reaching implications for how loyal these customers will be in the years to come – something that benefits the entire organization.
When customers have a poor experience, this can easily lead to them harboring negative feelings about a company for years to come, making them less loyal and more likely to leave. This is especially common in the collections journey; given the stress that financial hardship puts customers through, poor customer service can cause irreversible damage to the relationship between company and customer.
Organizations should view the collections process as a chance to go ‘above and beyond’ for their customers. Communicating clearly, tailoring the approach to each individual customer and building a real human-to-human rapport can really pay dividends when it comes to keeping customers satisfied where they are for the future.
How to build customer loyalty in the collections process
Clear and regular communication
Customers will return if they feel understood and listened to. In the context of debt collection, clear and regular communication is necessary to guide customers through their financial difficulties. When done correctly, this builds a loyal customer base due to the fact that they feel understood and always have the opportunity to talk human-to-human when they have a concern.
Establishing a stable stream of communication can be achieved through supporting omni channel capabilities. This gives customers the ability to communicate through phone calls, texts or emails and receive the same amount of support and response. Customers that are able to use their preferred channel of communication will be happier and more likely to stay.
Treating customers as individuals
Each customer is unique. Their financial situation, debt history, and many other factors from their work schedule to childcare commitments can make the approach required very different from one to another. It is important for collections teams to understand and accommodate the individual situation of each customer so that a strong relationship can develop and debts can be successfully collected.
Tactics for accommodating individuals in the debt collection process can range from the platform of use, channel of communication or simply offering human-to-human contact instead of online solutions.
Over deliver and overperform
Providing an excellent service that exceeds customer expectations is the key to building loyalty – customers who receive exceptional service will return in future. This is no different in debt collection, and businesses should always strive to over deliver on any service possible.
Providing a memorable experience for customers is crucial for relationship building. This doesn’t happen overnight; it requires positivity, flexibility and a willingness to help over a long period of time.
Building strong relationships with C&R Software
It’s clear that building a loyal customer base is necessary for collections teams to retain their core customer base long-term – a key factor for growth. Implementing the tools and techniques to build this loyalty can be challenging however, which is where C&R Software comes in.
Our industry leading Debt Manager is an intuitive collections management software that seamlessly integrates into any business. It is already in use in over 20 industries, and has managed a total of $5 trillion of debt so far. Debt Manager allows businesses to tailor their approach to individual customers in a way no other solution can, helping them build stronger relationships.
Is it time to put a greater focus on building customer loyalty through your collections operations? Contact us today to learn how we can help you build an experience that will delight your customers.
