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The reciprocity principle is a fundamental social rule that suggests individuals are more likely to return favours when they receive kindness. In the context of collections, this principle can be leveraged to improve debtor engagement and recovery rates. By demonstrating understanding and offering flexible solutions, creditors can foster goodwill, which may encourage debtors to meet their obligations more readily. This article explores the application of the reciprocity principle within a collections function, examining its importance, key considerations, and the anticipated… Read more

Implementing Social Norms Theory within a collections function can significantly enhance the effectiveness of debt recovery strategies for creditors. Social Norms Theory, is grounded in the idea that individuals' behaviours are influenced by their perceptions of how others in their social group behave and can be strategically employed to improve debt collection outcomes. This article explores the key elements needed to implement Social Norms Theory in collections, why it is important, key considerations, potential benefits, and examples of its successful… Read more