There are plenty of debt collection strategies that leverage multiple communication channels to reach consumers. However, there’s a difference between using several distinct channels (multichannel outreach), and an omnichannel approach that connects every touchpoint to an intelligent feedback loop.
If your business is looking at how to improve collections performance, simply adding more channels isn’t enough. Channels need to talk to each other and inform decisions instead of being siloed out. Let’s take a closer look at what an omnichannel debt collection strategy is.
The Difference Between Multichannel and Omnichannel Collection Strategies
It’s important to know the difference between multichannel and omnichannel debt collection strategies. Multichannel strategies are usually focused mainly on maximizing reach. A variety of communication channels are used, but they run on their own track and often don’t know how other messages performed. For example, a consumer who ignored a text message, could just get sent another in hopes of a different result.
In an omnichannel debt collection strategy, there is coordination between channels. The interaction with consumers flows across touchpoints seamlessly. There’s coordination to send debt collection communications based on consumer behavior and preferred channels.
The Core Pillars of an Omnichannel Collections Strategy
1. Unified Data and Effective Management of Communications
The center of an omnichannel debt collection strategy is consumer engagement data. Whether a consumer ignores a text message, opens an email, clicks on a link, or makes a payment, the outreach system is made aware of it. Every communication channel talks to each other to prevent duplicate outreach, help ensure compliance and honor consumer preferences. This is the essence of the term “unified data”. All of the decisions the system makes like which channel to use, the timing of sending a message and more is using the whole data pool.
2. Machine-Learning Channel Orchestration
Instead of static frameworks like an email drip campaign sending out messages on a set schedule, an omnichannel strategy can use machine learning to figure out:
- Timing: When is each consumer most likely to engage with your message?
- Channel: What is the preferred communication channel for each consumer? (email, SMS, phone call, etc.)
- Content & Tone: Which content template most aligns with each consumer and offers the best opportunity for engagement?
Machine learning technology (like the patented HeartBeat engine at TrueAccord), continuously looks at consumer behavior to decide on the next best action dynamically. Key metrics like click-through rates, open-rates and time-of-day activity also give the technology ability to adapt and adjust the variables listed above to try and improve recovery rates.
3. Self-Service Integration in Omnichannel Debt Collection
Outreach is only part of the equation for an effective debt collection strategy, the action consumers are being asked to take is important too. To help reduce friction with making a payment, omnichannel strategies include a link to a self-service portal in many communications sent out. Just like the communication channels themselves, the link between the message and a payment portal needs to be seamless.
For example, if an SMS link opens a webpage that requires a multiple-step process to make a payment, it’s likely to hinder recovery rates. A self-service portal that’s optimized for mobile devices that lets consumers submit a payment in a few steps is considered best practice.
How an Omnichannel Debt Collection Strategy Helps Drive Performance
When the right omnichannel debt collection strategy is implemented, it can offer a variety of key benefits to businesses including:
- Boosting Engagement Without Raising Costs: An omnichannel strategy helps empower collectors to effectively use digital channels that can more efficiently handle early-stage outreach. It automates time-consuming and expensive manual outreach.
- Meeting Consumer Preferences: A core benefit of an omnichannel debt collection strategy is that it meets consumers where they are. And more consumers than ever before prefer businesses to reach them through digital channels.
- Strengthen Compliance Efforts: Debt collection compliance is always evolving with regulations governing contact frequency, consent rules and more. Channels that are isolated typically have more risk, a unified omnichannel approach helps ensure solid compliance.
Elevate Your Collection Strategy with TrueAccord
TrueAccord is the premier omnichannel debt collection agency that leverages patented machine learning to deliver superior performance and a consumer-first experience. If your business is interested in learning more about taking the guesswork out of collections, we’re here to help. Contact our team today to get started.