Late payments are an increasing problem for UK businesses, local councils and government authorities. But with the advent of digital technology, debt collections can now be modernised via a multitude of methods. Here we outline 5 top ways to modernise collections process and improve your overall credit control.
1. Go Omnichannel
An omni-channel debt collection strategy involves utilising text messaging, email and chat, in order to gain successful responses. By leveraging the power of omni-channel digital communications, you reach debtors via channels they’re familiar with, and you’re much more likely to gain a positive outcome. Lateral’s debt recovery software offers 2 way SMS, Live Chat, and VOIP integration.
2. Self-Service
Today over 50% of customers prefer self-service. Traditionally, field agents, phone calls and ineffective letters were the modus operandi of debt recovery specialists. Instead today leading collections software will boast a self-service portal; a means and location for debtors to manage their debts themselves. Via this portal they can make payments, and manage their debt from anywhere at any time. The result is improved customer service and improved debt recovery rates.
3. Single View of Debt
Powering a ‘single view of debt’ is the most innovative and useful way to optimise the collections process for local councils, government agencies, law firms and businesses. This ‘single view’ is an holistic outlook on the debt an individual owes the entire organisation, and the data it provides results in more accurate reporting, forecasting, communication and collections management.
4. The Artificial Intelligence Angle
By harnessing the powers of Artificial Intelligence (AI) and Machine Learning (ML), the overall debt collection performance can be improved, and creditors and customers alike can reap rewards. For example, leading debt collection software, which leverages the power of AI and ML, can also recognise and present the optimum time of day for any digital communications to be sent to a debtor, and also the best channel by which to reach the debtor. This increases the likelihood of a response, and collection rates see dramatic improvements. Furthermore, AI can power human-like ‘voices’ via chatbots, which although predicated on automated workflows, can feel personal to the debtor and reap rewards at a low cost.
5. Use Business Intelligence and Analytics
Another successful digital collection strategy is using business intelligence data and analytics. Debt collection software can work on your behalf in this regard — running complex algorithms and processing large data sets, before presenting you with information relating to your omni-channel communication effectiveness, for example. The truth is, data = knowledge. And can use this knowledge to power important operational changes to get the results you need, and replicate areas of strength across your organisation.
Digital tools continue to create a constructive disruption in the collections industry. AI and ML offer the foundation for building a whole new approach to successful collections. To learn more about how Lateral’s advanced debt collection tools can help you adapt and evolve, get in touch today.