The debt collection industry is responsible for generating the bread and butter for several other industries. Income of many businesses often depends on the productivity of debt collection agents. However, the collection business is still built upon channels like manual tracking and calling, which is not only time consuming but also labour intensive.
Manual processes can lead to multiple errors and may result in legal complications between debtors and collectors. Technology has supported in revolutionising these tasks. But when it comes to customer service and repetitive administrative tasks, even technology must be optimised for better performance.
The logical and efficient way to solve these issues is smarter automation. By this, we mean, use of AI-powered solutions which keep your customer relationships in consideration and build effective communication channels.
Benefits of Automated Mobile Communications
The potential of automation in today’s world is immense, and it has a huge role to play in the operations of debt collection companies – especially because there is a lot of repetitive communications involved.
So, how can technology replace a human-dependent business you may ask? Ideally, the purpose of automation is not to replace but empower the business.
The benefits of automated mobile communications include, but are not limited to:
- Boosts productivity: As software takes charge on behalf of the collection agent and allows them to focus on more productive tasks.
- Informed decision making: Communication details and response data is captured on a single dashboard which helps agents to observe, analyse and optimise collection process like - how to contact debtors strategically to ensure maximum returns. This helps to avoid issues like unpleasant conversations because of untimely contacts, unnecessary chasing of delinquent debtors, or unanticipated lawsuits.
- Higher efficiency: It goes without saying that a robot is extremely cost-efficient because it saves a lot of money on redundant labour. On-time's automated caller can streamline a collection process to 18,000 collection calls/hour which in comparison to humans is only 8 calls/hour.
- Greater reach: Automated mobile communications has the potential to engage with contacts directly via mobile-friendly channels like calls and SMS, which has higher potential to convert than online channels. This helps to reach people faster and accelerate the response rates.
So, automated communications can be used to make the collection process seamless and more efficient. On-time's automated mobile communication software supports human agents in this process and captures valuable data while saving costs on multiple manual labour with smart Payment Reminders.
Additionally, for debt collection companies the benefits are manifold:
- You can expand your range of services with more efficient and smarter collection channels, which is an attractive benefit for your customers and gives you a competitive advantage in the market.
- With the help of machine learning you are already a step ahead when it comes to tracking potential defaulters or connecting with the right debtors at the right time for effective conversions.
- Automated communications has the potential to deploy active collection processes which boost your collection efficiency as an agency. Alternatively, it helps to reduce customer churn and improve DSO for your customers.
Although traditional practices will continue in certain fields of work, there is no denying that automation is the future of work in all industries and its here to stay!
So, how can you align the two processes and make the best of this system?
How can debt collection industries use automated communications for payment collection?
In order to make the best of automation, in all fields of work there must be a well-thought-out, recurrent process which makes the services more efficient. Same goes for debt collection agencies when it comes to pre-collection operations.
- Ideally, this process should involve a mix of automated phone calls and SMS or email reminders along with collection agents calling near the end of the payment term. This systematic approach is not only cost-effective but customer-centric too.
- As mentioned above, automated tools also captures essential communication data which helps to make informed decisions, like how to act on debtor delinquency or track payment defaulters.
- Automated communications can also be used to occasionally check with customers about their payment situation. This leaves room for segmenting high priority and low priority customers, so can you understand which debtor situation demands human contact or negotiation.
- It also creates an opportunity for building enhanced customer relationships because the debtors value that you care about their situation. Constant reminders and uncalled-for and legal notices are not always the most favourable options, when it comes to payment collections.
Debt collection is not only about recovering impending payments, but entails a lot of factors which can be categorically made more efficient.
Its potential for the use of automated services is immense and it’s about time that the industry explores the benefits of AI to empower its agents with tools that drive results smartly and quickly.
Download the Survival Strategy Guide 2022
Know about the mega-trends disrupting the payment collections industry currently and learn the survival tactics to stay ahead of the game!