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Chris Smith | 15 August, 2023

What is hyper-personalization? The role of one-to-one personalization through debt recovery

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. By incorporating it into your processes, you can be better equipped to provide customers with the support they need, all the while optimizing your customer engagement practices at the same time.

What is personalization?

Personalization is no longer simply addressing someone by their name in a solicitation. In financial services, including the collections process, personalization focuses on accommodating the preference and experience of the customer. They expect financial institutions to be able to anticipate their needs, and then provide the perfect combination of actions that helps guide them towards debt resolution.

Personalization in collections usually focuses on customer engagement. This ranges from accommodating omnichannel communications, offering self-service opportunities and/or providing unique payment options that suit the customer’s situation. Each of these aspects serve to humanize the collection process for customers, but can be taken to the next level with the use of AI and configurability.

Taking personalization to the next level

Hyper-personalization is the next step in further humanizing the collections journey from start to finish. It focuses on enhancing their experience by using data, analytics and AI systems to provide a truly unique experience between each account:

  • Data - Every key interaction between your customers and your platform (phone call, email, payment offer, etc.) is recorded into a centralized system.
  • Analytics - From this data, you can perform thorough analytics on your customers to identify their key characteristics; how often they engage with you, their preferred channels, how many times they have missed payment, etc.
  • AI - Machine learning (ML) and AI tools can use these analytics and segment customers based on their characteristics, assign them to appropriate treatment paths and automate communications via their most responsive channel.

Each of these aspects come together in a holistic way to provide a superior form of humanization for your customers. They will receive the guidance and support they need as an individual to resolve their debt. And thanks to AI tools, you can provide this support for a large number of accounts through automating the manual tasks that would otherwise take up significant time and resources for your team.

Incorporate hyper-personalization with a configurable collections platform

Hyper-personalization is a vital aspect of the collections process. It uses AI to ultimately humanize your customers’ experience, which directly translates to increased customer retention and mutually beneficial outcomes; debt resolution and customer engagement.

C&R Software’s Debt Manager is a configurable platform that supports complete AI and ML capabilities at every stage of the collection process. It seamlessly integrates with your new and existing systems, providing the full capabilities of hyper-personalization all the way through a customer’s collections journey.

To learn more about Debt Manager and how it can provide hyper-personalized capabilities for your customers and processes, contact a member of our team today.

 Chris Smith
About the author

Chris Smith

Having spent his entire career in the credit and collections space, Chris Smith started out building and implementing collection strategies before leading product teams. Now the Vice President of Product at C&R Software, he supports organizations in a variety of countries and industries achieve their ROI goals. Chris is an analytically-driven product leader, specializing in defining and executing product strategy and positioning to drive business growth.

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