Why Digital Collections Is the Future

Editor's Note: This article was originally appeared in the TrueAccord Blog and is republished on insideARM with permission from TrueAccord.

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Has your organization made the move to digital? It’s one of the most important transitions you can make today within any business and any industry. In the collections industry, digitizing your company means a lot of change in the way you do things, but also in the tools, you can provide. You may understand what digital collections mean for your business – it means more data and more managed control over your operations. What does it mean for your customers, then?

Your Customers Want a Digital Collection Agency

Be realistic here. How much money do you spend having people call and speak to voicemail? How many frustrating conversations happen that could be resolved with just a bit of a better method to improve communication? One of the things today’s consumers want is the ability to be reached digitally. How many of your customers appreciate threatening phone calls? Even if you consider how valuable this type of conversation can be, you know it doesn’t always lead to results.

Now, think about your consumer a bit closer. You have a large and growing base of millennials, in most cases. This group of people uses phones for anything they can handle online. Imagine, for a moment, the millennial. With money in his pocket, he is able to make a payment. Then he finds out he needs to write a check and mail it. Or, the person on the phone wants routing numbers and account numbers. Most millennials don’t have these on hand to simply offer. That person simply doesn’t make the payment because making the payment isn’t easy to do.

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What Does This Mean for Your Organization?

In short, by making a few key changes, you can learn to communicate more fully with your customer base. First, allow them to have numerous ways to connect with your company. This includes making payments online, but may also mean using chatbots as well as text messaging for communication. You also want them to be able to handle all of these transactions and needs on their mobile phone – do not rely on them to make time while they are on their phone.

Also, consider the importance of building more empathy into your collections efforts. Having an empathy-based collection outreach program ensures you are providing your customers with respect and dignity. Many customers do not respect threats. They do not respond well to them, especially millennials. However, they are more willing to have a short conversation, talk about themselves and their needs, and to produce results for you. This type of approach benefits your customer but also your business.

It does not have to be difficult to make the switch to a digital collections system. Rather, simply invest the time in learning more about the ways you can improve the methods of communication you offer to your customer base. You may also want to consider the opportunities you have for creating an outreach program that helps to ensure your collections business is working for your customer.