The debt collection industry was living in the Dark Ages before companies such as TrueAccord started using machine-learning and AI to revolutionize the process.
Now, digital debt collection services are dramatically improving recovery rates while increasing customer retention. But how could digital debt collection help your company? Let’s take a look at some of the main benefits for your business.
Increased recovery rates
The digital revolution has arrived just in time for businesses that rely on collection agencies to recover money owed to them. The effectiveness of the traditional methods has been continuing to fall in recent years with $13.3billion collected in 2012, falling to $11.4bn in 2016. Many legacy agencies are still relying on a one-size-fits-all approach to repayment plans and dying forms of communication such as telephone and snail mail. Thanks to advanced AI, digital debt collection agencies can now analyze each customer’s financial situation and construct a highly-personalized repayment plan. This customer-centric approach makes the repayment process as easy as possible for the debtor. Combine that with forms of communication relevant to the modern age — such as email and SMS — and you get far higher recovery rates.
Greater legal protection
Protecting your company against legal wrangles is a major concern for any business owner. While you want to retrieve money owed, you don’t want to do it in a way that will get you in trouble with the Consumer Financial Protection Bureau. Traditional debt collection often relies on call center workers communicating with customers on the phone. But every call is a compliance risk. Humans can be dictated by their emotions or can be tricked into making mistakes by ill-meaning debtors. Using a digital debt collection service will be far safer for your company as compliance can be automatically added to all customer communications. Furthermore, when new regulations are introduced a simple update can be made to the code to keep them in line with the law.
Improved customer retention
Keeping hold of your customers is far cheaper than acquiring new ones. In fact, it can cost five times more to attract a new client than retain an old one. While debt collection is an awkward process that could drive a wedge between you and your customer, some methods retain clients better than others. Many traditional debt collectors offer an experience that is highly off-putting to clients — it was one of the reasons we launched TrueAccord. Their communications are often full of jargon that, at best, confuses the client or, at worst, intimidates them. The best digital debt collection agencies use modern communication methods with sympathetic language designed to engage with the customer — no more threatening letters or inconvenient phone calls. Customers can also devise their own repayment model, placing the power in their hands and retaining their loyalty. Of course, whether you want to take the customer back is up to you, but at least you might have the choice.
When you own or run a company, cash flow is going to be one of your main considerations. When a customer isn’t paying up it can seriously dent your plans or even put you out of business. While hiring a debt collection agency is something no-one really wants to do, it is sometimes the only option. Digital debt collection agencies, such as TrueAccord, have revolutionized the industry making it friendlier, retrieving more debt while keeping customers on board. If you think a digital debt collection agency is the right move for your company, contact us and take your first steps with TrueAccord.