When you’re looking to retrieve as much money from your debtor as possible, you should be using the best debt collection tools available.
But for a long time, businesses have been relying on archaic recovery methods to reclaim money owed to them. Threatening letters and phone calls are normal, but neither are productive or effective in the digital communication age.
A data-driven, machine-learning revolution has taken place that has optimized the process for both creditor and debtor. But which of the new debt collection tools should you be utilizing? Let’s take a look…
Code-driven compliance emails
When it comes to contacting debtors, every telephone call can be a compliance risk. Even those aware of the rules can be driven by human error or emotions into making a costly mistake. However, digital debt collection agencies are now conducting communications via code-driven emails that are helping businesses stay the right side of the law. At TrueAccord, for example, we make sure our pre-written communications are checked thoroughly by a team of lawyers before they are sent to any clients. This assures predictable, legally safe communications. Additionally, when the rules and regulations change (which they do quite regularly) we can simply edit our code to bring all new communications in line. The benefits are a much reduced compliance risk that removes the age-old issue of human error or emotion from the equation.
Data-analyzed communications
Increasing liquidation percentages is the main aim of every cash recovery process. So it’s important to know that, when it comes to debt collection, the way we speak to customers can be the difference between retrieving everything or nothing. That’s why one of the most powerful debt collection tools currently available is data-analyzed communications. TrueAccord is constantly testing and reviewing the ways we speak to customers to help create more engaging content. For example, we were able to raise our click-through rates by 50% with one simple change aided by data analysis. All the call-to-action buttons on our emails to debtors once read “Pay Now”. However, after realizing that customers reacted differently depending on what stage of the debt lifecycle they were on, we changed some of the CTA buttons to “View my statement”. This minor alteration lead to a huge leap in the amount of people clicking through and actively engaging with their debt.
Creditor dashboards
Any business owner will tell you that being owed money is incredibly frustrating. Companies live and die on their cash flow and when that stagnates it can be detrimental (even fatal) to the business. Knowing where you are in the cash recovery process can give you some peace of mind, but many traditional collection agencies only offer monthly remittance reports or the odd catch-up. However, modern digital debt collectors are able to offer creditor dashboards which are updated multiple times throughout the day. From here, you will be able to check payment information, account statuses, activity metrics and a whole lot more. Businesses can then use the information provided to start planning for the future, making decisions based on up-to-date information. TrueAccord’s dashboard is even optimized for mobile to provide easy-to-read data wherever you are.
Personalized payment plans
People fall into debt for a variety of reasons. They may have lost their job, simply forgotten a payment or had an unexpected life event turn their world upside down. For that reason, using a cookie cutter repayment plan is simply not going to be the most efficient means of debt recovery. That’s why a data-driven personalized payment plan should be one of your essential debt collection tools. TrueAccord’s machine learning-based system analyzes the debtor’s situation against a massive amount of data to come up with a payment scheme that works best for the customer. The process is far more understanding and flexible to the customers’ needs and we see payment plan breakage that is far, far lower than the legacy agencies offer.
For decades, traditional debt collection agencies have been using call center and letter-based communications to get debtors to pay up. The method is ineffective, costly and a compliance risk at every stage. FinTech startups such as TrueAccord have now introduced debt collection tools that are revolutionizing the industry making it more personable and efficient. Make use of these latest weapons and recover more of the debt owed to you.