The preferences of modern consumers have changed and many want businesses to communicate through digital channels like email or text messages. There are also complex cases where talking with a consumer on the phone is the best path to repayment. The point is that collection strategies need to be flexible and meet consumers where they are, and relying on a single channel for outreach can reduce recovery success
An omnichannel debt collection strategy is no longer a luxury for businesses looking to achieve their recovery goals—it’s a necessity. Learn the benefits of an omnichannel approach and how debt collection software can optimize the process below.
Engaging Consumers Today Isn’t Effective with One Channel
One of the biggest bottlenecks that recovery strategies face is contact-ability. Research from TransUnion shows that roughly 80% of consumers will ignore phone calls from numbers they don’t recognize. Plus, the rise of call screening software has added another substantial hurdle to effective phone outreach. If a business isn’t leveraging digital channels to offset these effects, they may be unreachable for a large percentage of consumers.
An omnichannel strategy bridges this gap by leveraging compliant messages through email and text. By diversifying your recovery outreach channels, you increase the likelihood that individual consumers have their preferences met, which can lead to more repayments. While running multiple communication channels in-house can be complex and resource intensive, there’s digital debt collection software that will automate the process and keep costs down.
Digital Channels Unlock 24/7 Resolutions for Debt Collection Strategies
Traditional debt collection strategies that rely on phone calls for recoveries are limited to contacting consumers during call center hours, generally a 9-to-5 type schedule. This not only limits when consumers can engage, but can often cause added stress to the situation since they have to speak with a live agent. According to data from McKinsey, consumer preferences have moved away from phone calls. In fact, by embracing a multichannel approach to debt collection (adding email and text messages), businesses can see up to a 40% increase in repayments.
By leveraging digital communication channels like email and text messaging, consumers have the ability to resolve their financial obligation on their own time. Self-service portals make it easy for consumers to take action without feelings of shame, stress or anxiety that can come with talking to a human agent about debt. Without a self-service option, your business may be missing out on a significant portion of recoveries.
Omnichannel Debt Collection Strategies Are Key to Frictionless Experiences
When talking about using a variety of channels, it’s important to make the distinction between a multi-channel and omnichannel approach. While multi-channel uses different channels in an effort to maximize engagement, the channels aren’t talking to each other to create a unified strategy. An omnichannel approach, on the other hand, links all the channels being used to help ensure the consumer’s journey flows smoothly across all channels.
Modern debt collection software can enhance digital omnichannel efforts by compliantly sending consumers a secure link where they can submit a payment. And by automating this process, your business could lower operational costs while meeting the preferences of more consumers. Some of the other key ways an omnichannel approach removes friction for consumers include:
- Personalized Outreach: Debt collection software can analyze data to determine the best channel, message and time for each individual account. By meeting consumer preferences, your business makes the process less intimidating and easier to understand.
- Easy Account Access: Digital channels give consumers the ability to get all the critical information about their financial obligation on the go. Consumers can bypass asking human agents for information and use digital wallet integrations to easily make repayments.
- Ensures Seamless Context: If a consumer has to speak to a human agent, the right debt collection software keeps a detailed record so they don’t have to start the interaction from scratch. The human agent can see every interaction, which creates a faster and frictionless experience.
More Channels Equals More Data to Improve the Consumer Experience
When a debt collection strategy only uses one or two channels, it can become difficult to optimize the process. A one-size-fits-all approach doesn’t have the flexibility to adapt to changes in consumer preferences and yields less data on what type of message prompts the most engagement. An omnichannel approach naturally allows businesses to embrace a more empathetic approach by reaching out to consumers as individuals. It uses data to coordinate debt collection outreach intelligently across digital channels.
For example, if a consumer gets a debt collection text message and wants to speak with a human agent about it over the phone, an omnichannel strategy gives that agent full context. The overall experience (no matter the combination of channels), is personalized based on each consumer’s needs and preferences.
Debt collection software can track consumer behavior and engagement (like clicks, payments submitted, open rates, etc.) to optimize your outreach going forward. When software automatically routes a collection message through a consumer’s preferred channel, at a time they’re likely to be active and with messaging they connect with, recovery rates are more likely to improve.
Help Maximize Recovery Rates with Retain Debt Collection Software
Behind every account is a human that has unique preferences and wants a less stressful experience. Retain white-label debt collection software analyzes each account to compliantly send the optimal message, through the right channel and at the right time.
Ready to help increase recovery rates while lowering operating costs? Reach out to our team today to learn more about the power of a consumer-centric experience.
