The terms “omnichannel” and “multi-channel” are frequently used to describe consumer outreach strategies, and while they may sound similar, the differences between these approaches are crucial, especially for effective debt collection.
Let’s break down the key differences between omnichannel and multi-channel communications, particularly in the context of debt collection, and why these distinctions matter more than ever.
Missed Opportunities of Multi-channel Communications
Multi-channel communication refers to the use of multiple, separate communication channels to reach a consumer—such as email, text messages, phone calls, letters, or even self-service portals—but each channel operates independently from the others, and there is little to no integration between them.
For example, a consumer may receive an email notification about their outstanding balance, followed by a text message a few days later. These two forms of communication are treated as isolated experiences, with no connection between them. The consumer’s journey is fragmented and valuable insights on the consumer’s behavior is lost for the business.
While the multi-channel goal is to maximize interaction across the various channel touchpoints, it doesn’t enable cohesive consumer insights to influence engagement strategies, leaving better engagement and repayment opportunities on the table.
The Power of Omnichannel Communications
Omnichannel communication, on the other hand, goes a step further by integrating all available channels to create a unified engagement strategy. Whether the debtor is engaging with a text message, phone call, email, or self-service portal, the consumer’s journey flows smoothly across these channels.
If a consumer receives an email notifying them of their debt and soliciting repayment but opts instead to speak with a representative over the phone, the omnichannel approach ensures that the agent is aware of the context of the earlier interactions. The overall experience aims to be personalized and unified for the consumer, while delivering the business a comprehensive view of the consumer’s behavior and need (which can help influence more streamlined outreach with similar consumers in the future).
And omnichannel isn’t just about analytics and insights—studies have shown:
- Initiating contact with delinquent consumers through their preferred channels can lead to a more than 10% increase in payments
- The omnichannel approach has been shown to increase payment arrangements by as much as 40%
Omnichannel is the Future of Debt Collection—And TrueAccord Leads the Way
What sets omnichannel apart is the technology that underpins it—and TrueAccord stands apart with our patented machine learning engine, HeartBeat. By leveraging sophisticated data and insights from over 35 million consumer engagements accumulated over TrueAccord’s 12 years of service, our omnichannel approach tracks and adapts to evolving consumer behavior in real-time. If a consumer opens an email but doesn’t respond, our system might trigger a follow-up text or phone call at the right moment—tailored to the individual’s preferences and previous interactions.
Our decision engine, HeartBeat, determines the right channel to send the right message at the right time for optimal engagement. We approach consumer communication from an overall reachability perspective to effectively engage more accounts and get more resolution versus simply determining if one channel is better than the other.
While multi-channel strategies can help organizations reach consumers across various touchpoints, the omnichannel approach delivers a truly unified, personalized, and seamless experience that prioritizes the consumer’s journey.
By integrating communication channels and using data to respond to consumer behavior in real-time, TrueAccord can not only increase the effectiveness of their outreach but ultimately lead to higher recovery rates.
Want to know more about how the omnichannel approach and how each channel influences the effectiveness of a business’s overall collection strategy? Download our new eBook, Omnichannel Communication in Debt Collection: An In-Depth Look at Advanced Engagement Strategy by Channel now»»
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