How Skilled Debt Collection can *increase* your NPS

By on September 8th, 2014 in Industry Insights
TrueAccord Blog

If you’re a marketing or customer service manager at a large bank, your success is likely tied to increasing your institution’s Net Promoter Score. You’re probably also familiar with the paradoxical task of collecting debt without sacrificing promoters. The age of big data has a solution for that. With the right collections partner, you can improve customers’ attitudes not just about the late bill at hand, but about their overall experience of the brand itself.

How is this possible?

For starters, it’s an essential evolution in the financial industry. According to Satmetrix, credit card providers face a particularly onerous challenge in debt collection because it typically takes six or more years before any one customer becomes profitable. In their attempt to maximize customer spending and tenure, lenders must innovate in the realm of debt repayment.

If satisfaction is the fundamental NPS driver, it stands to reason the most valuable innovations in customer service will focus on turning critics into advocates. Finding disgruntled customers is easy. Many of them are refusing to pay their bills. At TrueAccord, we’ve found that winning back these types of customers can create some of your strongest advocates.

Recover relationships, not just sums.

TrueAccord’s proactive loss management system uses enterprise-grade analytics to personalize our approach to individuals – to connect with them as humans – in a way that not only gets you paid but wins you fans. We accomplish this by looking at root causes of delinquency rather than the past-due balance itself. We segment customers based on how they perform both before and after we point out their tardiness. And we know how and when to follow up.

Take it from one of our best testimonials: “This has to be the funniest bill collection I have ever received and it actually made me want to pay.” The creditor in question could have written off this customer. Instead, we created a promoter.

We’ve also found that in addition to driving an organization’s NPS, TrueAccord’s debt collection methods can increase a company’s overall revenue. Our customers see more than $2 in additional business for every $1 paid per late payer we retained for them.

Bring it home.

A seminal Bain survey of more than 89,000 customers of various types of US banks found that promoters stay longer with their institutions, buy more products, refer more new customers and cost less to serve. The study also found that among affluent US customers, a promoter is worth $9,500 more than a detractor over the tenure of that customer relationship. Of particular note, direct banks enjoy drastically higher NPS than national branch networks based on recommendations from friends, colleagues and family members.

At TrueAccord, we can make your customers feel like they’re dealing with their local banker down the street. And as history suggests, communities promote from within.

 

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