The future of collections is being shaped by several key factors, including the rise of digital communication channels, a focus on customer treatment and empathy, and the ongoing debate surrounding remote work.
In this discussion Blair DeMacro-Wettlaufer explores these trends and their implications for the collections industry, highlighting the importance of adapting strategies to meet evolving consumer expectations and leveraging technology effectively.
Find out more about Kingston Data & Credit -> Here.
Key Points:
- The use of digital communication channels, such as email and SMS, has become increasingly important in collections, with agencies tailoring their approach to consumer preferences. Email communication has gained traction in the US due to regulatory changes, while SMS remains relevant for certain consumer segments.
- While artificial intelligence (AI) and chatbots hold promise for improving collections processes, current AI capabilities may not yet be sufficient for complex negotiations or financial discussions. Chatbots have shown potential for automated decision-making in offering payment arrangements based on predetermined algorithms.
- Building a culture of empathy and treating customers fairly can lead to improved collection rates and customer loyalty. Agencies that prioritize empathy and create a positive working environment for collectors tend to see higher liquidation rates over time.
- The shift towards remote work has been met with varying responses across different regions and companies. While some embrace hybrid or remote working arrangements, others prioritize in-office presence for security or cultural reasons. Striking the right balance between remote and in-office work is crucial to maintaining a positive company culture.
- The pandemic has fundamentally changed people’s behavior and expectations, resulting in increased anxiety and a shift in social dynamics. Companies will need to adapt to these changes and consider the long-term effects on consumer behavior and preferences.
Key Takeaways:
- Collections agencies should align their communication channels with consumer preferences, leveraging email and SMS based on individual needs and regulatory requirements.
- While AI and chatbots hold promise, their current capabilities may be better suited for simple tasks rather than complex negotiations or financial discussions.
- Prioritizing empathy and fair treatment of customers can lead to higher collection rates and customer loyalty.
- Finding the right balance between remote and in-office work is crucial for maintaining a positive company culture and maximizing productivity.
- The long-term effects of the pandemic on consumer behavior and expectations should be carefully considered and incorporated into collections strategies.
#KDC
RO-AR insider newsletter
Receive notifications of new RO-AR content notifications: Also subscribe here - unsubscribe anytime
