Whether you own a small startup or multi-national organization, you will always be looking to increase the amount of money coming into the company.
One area that many companies can quickly improve is their debt collection. For years, businesses have done things in-house or relied on traditional collection agencies that use outdated and ineffective methods.
However, a digital revolution has taken place and all that is changing. Now, data-driven collection agencies, such as TrueAccord, provide a much more efficient process that is safer, brings in more money and improves customer retention.
But that’s not all… here’s why all business owners should embrace automated debt collection.
Improved success rate
Ultimately, businesses want to recover money that is owed to them. However, the methods implemented by legacy collection agencies and in-house teams are nowhere near as efficient as using an automated debt collection service. That’s because modern, digitally-focused agencies utilize machine-learning and AI to provide a highly-personalized experience for the customer that produces far greater results. TrueAccord, for example, personalizes its automated communications by evaluating individual debtors and providing a service that works with them and not against. For example, we’re able to figure out which email subject lines best capture the customer’s attention and which call-to-action buttons drive the highest number of click-throughs. Our data, design and UX-driven approach leads to increased recovery rates and improved customer retention.
It doesn’t matter how big your company is, chasing debt can be a frustrating task, taking up man-power that could be better used elsewhere. Making calls, sending emails and processing payments all eat into office time. Depending on the amount of cash owed, you may even be considering hiring and training a customer care team to deal with debtors. However, this takes a considerable amount of time and money to put in place, which few companies can afford. Automated debt collection removes the need for additional hires and frees up employees’ time to work on other tasks. By automating communication and payments, you will be streamlining the whole process and keeping the number of staff at its most efficient. Furthermore, automated communication is highly scalable. More than 90% of TrueAccord’s customer interaction is through automated communication. That means each of our care agents handle more than 10,000 cases compared to the industry average of just 800.
The ever-changing rules and regulations surrounding debt collection can be tough to master. Violations can result in hefty fines that many companies simply can’t afford. Embracing automated debt collection can dramatically cut your risk of falling foul of the Consumer Financial Protection Bureau (CFPB) thanks to its code-driven compliance. When the rules do change, easy modifications to the algorithm keeps the process on the right side of the law. TrueAccord even uses pre-written content for its communications which, not only increases engagement, but also keeps it compliant. Our legal team gives each piece of content a final read to make sure our automated communication matches up to the latest CFPB standards.
More cost effective
Implementing an automated debt collection service will be the most cost effective method of recovering money owed to you. As previously mentioned, the success rate is far higher but did you also know that the overall costs are much lower? Digital debt collection agencies can provide a much more customer-friendly approach thanks to its highly-personalized service. This leads to far higher customer retention and, ultimately, more money coming in from the client in the long run.
There are plenty of reasons why a customer may be in debt, but all business owners want to recover money owed to them. As the above examples show, every business could improve their cash flow if they embrace automated debt collection. Getting started is an extremely simple process and the benefits are tremendous. If you’re ready to start using automated debt collection, get in touch with us today.