Developing with Empathy: TrueAccord’s Mission-Driven Approach

By on December 21st, 2022 in Customer Experience, Industry Insights, Machine Learning, Product and Technology, User Experience
Developing with Empathy

When most people think of debt collection, the word “empathy” rarely comes to mind. As a mission-driven company, we at TrueAccord, are trying to change that. We know life happens and financial anxiety has become more common than ever—especially when it comes to dealing with debt. By understanding and anticipating a customer’s needs, TrueAccord takes an empathetic approach which enables us to tailor our message and help the consumer’s journey back to financial health. With this in mind, it’s crucial for us to understand how a consumer might feel when they fall into debt.

Understanding and Engaging with the Customer

Life happens and so do delinquencies. So far, most fintechs have been good at focusing on customer experience by investing in user research and making sure that their products resonate with their target audience. However, a customer’s situation can change at the drop of a hat and with it their financial status, priorities, and motivations. When a customer, whom you thought you knew well, has an account that goes delinquent, they essentially become a stranger. Now a whole new approach is required in order to engage with this consumer. 

In order to adopt the right approach to engage a delinquent account, the first thing we have to figure out is who the customer is. What are their needs? What problems do they have? Do they have special circumstances? Not only is every customer different, but every interaction you may have with that customer could be different depending on what life situation they find themselves in. So it is very important to have a broad communication strategy and be ready to meet the customer when and where they are ready to engage. This means don’t limit communication channels and have options that consumers can explore, evaluate, and select on their own time.

Leveraging Digital-First Channels

Most consumers prefer using digital channels over talking on the phone with research showing 94% of unidentified calls going unanswered. Digital channels allow people to choose when to respond without being put on the spot. 

But starting a digital-first approach is not easy—it’s not just about sending emails or SMS messages to consumers. At TrueAccord we try to find the right communication channel to use for a specific consumer. We might start with a combination of email and SMS but once we get more engagement with one or the other, we’ll primarily focus on using the channel the customer engaged in. 

We make sure that they’re aware of their debt and their options from obtaining more information, disputing, or evaluating payment plans all through a portal where the consumer is in control.. 

For consumers who do choose to set up a payment plan, we work to make sure that they have everything they need to be successful in their plan – whether that means changing the plan, the payment date, or amount, we monitor and provide content so that the consumer can effectively stay in control of their plan through successful completion – putting the consumer back in control of their own financial health while at the same time recovering for the creditor.

Using Data for a Personalized, Empathetic Experience

To truly engage consumers a successful digital strategy should go beyond a simple campaign that pushes out emails to all of your consumers at the same time every week or every other week with a generic message. Not only do you have to overcome the inboxing challenge to avoid spam filters, you need to deliver the communication at the optimal time for the consumer to open the message. And you have to have the right message, a personalized message that causes the consumer to act – to communicate back to you their intentions related to the account (dispute, full payment, payment plan, hardship, etc.). 

But how do you personalize? 

This is where it’s vital to leverage an understanding of your consumers. This can be done with experimentation in A/B testing consumer research, and machine learning. A/B testing and consumer research help identify what resonates with consumers and what does not. Machine learning allows personalization at scale. At TrueAccord, we rely on machine learning to continuously improve our models. We can see what digital channels, timing, and messaging each individual consumer responds best to and tailor those specific preferences to the individual journey for each consumer. We also make sure that compliance is included from the start as it needs to be regulated throughout. 

For example, the best payment option is different for everyone. We provide a lot of flexibility, but we also know that showing them that flexibility up front, something that they can actually afford, will engage the customer to take the next step. Depending on the size and the age of the debt, we may show a couple of payment plans that we believe will be the most attractive to that customer along with the option to build their own payment plan. Once a customer sets up their payment plan, we send reminders when payment is due. We also have models that predict if a consumer is likely to break their payment plan based on past behavior and offer options to help keep them on track, like pushing the payment if they’re unable to pay on that date (because we understand that life happens, just like delinquencies). And as they make their payments, we celebrate their progress with them and acknowledge that they are making an effort to improve their financial situation!

The End-Product:

TrueAccord has worked with over 20 million consumers and sends over one million communications per day. For each of those communications, we’re making decisions on what to send, how to send it, and when to send it all in accordance with the legal and regulatory compliance obligations. We then use that data to continuously optimize and improve our communication method for each consumer. We’ve learned that if you’re building for the downtimes, it’s critical to realize that debt collection is a part of a consumer financial service. While our creditors are our clients, if we do what is right for the consumer (our clients’ customers), they are more likely to pay back to those creditors. A better consumer experience leads to better outcomes for all. 

By incorporating an empathetic approach to debt collections, TrueAccord is able to collect more money while helping consumers with their financial situation.

Want to learn more about how your business can integrate more empathy into your collections communications? Schedule a consultation today!

How Making the Switch to Digital-First Helped Recover $17M with TrueAccord’s Retain Platform

By on June 6th, 2022 in Industry Insights
How Making the Switch to Digital-First Helped Recover $17M with TrueAccord's Retain

When COVID hit in 2020, one Fortune 500 company needed to find an effective way to communicate and collect from the rising overdue accounts, with many of their customers falling into financial hardships. While the company had previously relied on old-school communication tactics like direct mail and an in-house call center to reach customers who had delinquent accounts, they knew a better solution was needed. 

The company had already observed firsthand a rise in customers’ preference for digital communications between mobile apps and online bill pay options, making it clear that this was the best route to go. Rather than build from scratch in-house—which would’ve been costly and time-consuming—the company evaluated third-party options before choosing TrueAccord and implementing Retain, the client-labeled early-stage collections solution. 

Once implemented and customized to fit the company’s needs, TrueAccord helped them collect over 63,000 payments to recover over $17 million. 

Retain’s digital outreach strategy made a significant impact on customer engagement and resolution beyond just payments with improvements across their paid in full rate, overall collections rate, average amount collected daily, and more. And with the help of HeartBeat, TrueAccord’s powerful machine learning decision engine, they were able to observe behavior data and optimize digital touch points and engagement in real-time. In just a few weeks, this digital collections approach caused a major transformation that only continued to improve. 

Discover all the astounding results in our full Case Study and learn more about how Retain helped the company implement the successful solution. 

Want to see how much more your company could recover with Retain? Request a demo! 

Building a World-Class Recovery & Collection Strategy: The Complete Starter Kit

By on March 7th, 2022 in Company News, Industry Insights
TrueAccord Blog

Delinquencies are a predictable reality for any business that handles payments, but the most efficient and effective way to recover delinquent funds isn’t always as predictable.

A recovery team could theoretically chase down every last delinquent dollar. But it would soon reach the point at which the operational cost of the effort – and the associated legal and reputational risk – would cut into profitability.

With so many factors involved, it can be difficult to even know where to start…

The planning process should start with an in-depth understanding of what makes a world-class recovery strategy in today’s digital-first age, a look at the big picture for your specific industry all the way down to your detailed metrics, and KPIs that should be steering your strategy. Consumers expect a seamless, personalized experience in every financial transaction, and your recovery operations can continue to deliver that all the way through the customer journey when you have the right strategy in place.

There is no one-size-fits-all when it comes to debt recovery and collection, but getting started doesn’t have to be daunting when you have the right resources to get you going.  

Beyond Best Practices and into Actionable Tactics 

Go beyond general best practices and start plugging in your own data with the tools inside our new Recovery & Collection Starter Kit. We have assembled guides, calculators, cheat sheets, and more to provide the frameworks and metrics for your organization to get started architecting the right recovery strategy for the long run. 

Each starter kit includes:

  • World-Class Recovery Guide pick your industry edition!
    • Manage delinquencies without sacrificing consumer experience
    • Balance performance with operation metrics and consumer-focused KPIs
    • Compare, contrast, and evaluate in-house vs partner collection strategies
  • Cheat Sheet: Top KPIs for Your Recovery Operations 
    • Differences between traditional debt collection metrics, digital engagement tracking, operational KPIs, and more
    • New consumer-centric KPIs for today’s most effective recovery strategy 
    • How to calculate profitability of a collection operation using operational metrics
  • Interactive Recovery & Collection Calculator
    • Enter your business’s KPIs to measure the profitability of your recovery
    • Discover opportunities to improve the reach, resolution funnel, and cost effectiveness of your recovery operation
    • Scenario plan how much in additional revenue and cost savings the shift to an intelligent, digital strategy can drive for your business
  • Choosing a Recovery Partner: Top 6 Questions to Ask
    • Detailed questions on communication, technology, risks, and more
    • Why each question matters for both profitability and consumer-experience 
    • Based on each question, what to look for in a potential partner’s responses 

Download your Recovery & Collection Starter Kit now>>

These tools will teach you how to maximize profitability by efficiently recovering money lent to customers or members—while simultaneously maintaining consumer loyalty. Now is the time for businesses across verticals to embrace a disruptive, obsessively consumer-centric mindset for recovery and collection, and experience the results of this new approach. 

What Debt Repayment Trends Can Teach Us About Consumer Needs

By on July 22nd, 2020 in Industry Insights

The collection industry has come a long way since local door-to-door agents tracking their accounts on index cards, and yet there is still a dearth of data. Most agencies rely on age-old adages or instinct to make operational decisions. 

Our six years of working with millions of consumers to resolve their debts digitally has given TrueAccord unique insight into consumer behavior. We turned to our data—aggregated across more than 12 million U.S. consumers—to better understand how consumers were engaging with their debts and what it tells us about the future of the industry. 

Consumer confidence in the economy matters

Before consumers even consider paying a debt, they start engaging with the debt collector. This engagement can take many forms, from clicking a link in an email or a text message, listening to a voicemail, visiting a debt collection website, or even calling into a support center. All of these actions indicate that a person is reviewing their options—a serious first step toward payment. Our work with consumers has shown us that engagement tends to increase when consumer confidence about the economy (and their own financial situation) is high and decreases when consumers are more uncertain about their ability to pay. 

For example, the graph below shows click-through rate (CTR) trends for TrueAccord’s collection emails through late 2019 and early 2020 (the blue line), alongside the monthly change in U.S. personal income levels (the grey dotted line), based on data from the Bureau of Economic Analysis. While CTR is a more volatile metric, the overall direction mirrors the changes in personal income. 

Engagement metrics, like CTR (shown here), trend positively with monthly changes to personal income.

Payments are scheduled around paydays 

Based on TrueAccord data, it’s clear that consumers prefer to make payments on Fridays more than any other day of the week. Fridays accounted for only 14% of the days in 2019, yet 35% of payments from payment plans were made on Fridays. The first, fifteenth, and last of each month also have large surges of payment volume. It makes sense that consumers plan their debt payments around when they receive their paychecks each month. 

In a typical month, payment volume is highest around popular paydays: Fridays, the 1st, 15th, and last day of the month.

Tax season is the busiest time for paying off debt 

Nearly 80% of U.S. households receive a tax refund each year, amounting to about $2,800 on average. This influx of cash can be a lifeline for many families struggling financially, so it’s no surprise that a survey by the National Retail Federation found that 34% of consumers who expect a tax refund plan to use it to pay down debt.

For this reason, late February through early April is the busiest time of the year for paying off debt (as shown with TrueAccord data below). In fact, we generally see a one-day peak in the last week of February, the first possible time to get a tax refund. After April, debt payments generally slow down again until Q4, when seasonal employment and gifting once again provide many American households with additional boosts of income.  

Payments peak in March due to tax season, then slow down in Q3. There is another surge in payments during the holidays. 

These trends all point to a simple truth—consumers choose to pay their debts when they have the money and confidence to do so. Rather than coerce consumers into making payments immediately, debt collectors should provide flexible (and ideally self-service) payment options. Especially in times of economic uncertainty, it is important for consumers to feel confident that they can adjust their payments to accommodate uneven or unpredictable cash flow.  

To learn how these behaviors have changed during the coronavirus crisis, plus 4 specific actions collection agencies can take to adapt, download our report, Consumer Debt in the Age of COVID-19. 

4 Key Trends From H1 2020, Based on our COVID-19 Report

By on July 16th, 2020 in Industry Insights

Six months in, it’s safe to say 2020 is not the year that anyone expected. The worldwide spread of COVID-19 has ushered in a wave of unprecedented health and economic uncertainty that has rippled through every aspect of life.

In our report, Consumer Debt in the Age of COVID-19, we studied the impact this crisis has had on consumers so far and what it means for the months ahead, based on digital debt interaction data from more than 12 million consumers. Here are four key trends from the report: 

1. Consumers chose to leverage CARES Act checks to pay off debts

Unsurprisingly, there was a huge decrease in debt payments in early March as the nationwide economic downturn began, despite typically being the strongest performance month for debt collection. However, as a result of the CARES Act, the average personal income in the U.S. rose by 10.5% in April 2020 and many Americans chose to use this additional money to pay off debt. Specifically, there was a near-instantaneous increase in debt payments on April 15th, the day the first major wave of CARES checks hit bank accounts. On that day, debt repayment dollars were 25% higher than on February 26th, the first day of tax season and previous payment peak.

When presented with a one-time surge in income (like a tax refund or stimulus check), many consumers chose to pay off their debt all at once, rather than having to keep up with a payment plan over time. In April and May of 2020, 40% of payments were lump-sum payments — 50% more than the same period in 2019.

For many people, the stimulus check represented their path to a clean financial slate. With an uncertain economic future ahead, many opted to clear their debts completely rather than dole out payments over the course of many months. This can be especially important before a recession to ensure easy access to credit lines, should they be needed, in the future. 

2. Engagement fluctuated throughout the crisis

The actions consumers take before resolving a debt can provide insight into their intentions. For example, when a consumer visits a collection website, opens an email, or clicks on a link, it’s likely that they’re starting to consider their options in regards to their debt, even if they don’t take any action that day. Tracking these intention-driven engagements or “prepayment activity” can help a company understand how likely it is that consumers will pay their debts. 

In terms of these types of engagement, 2020 started like any other year — there was a notable increase in prepayment activity in late February as the first tax refunds were being distributed. However, by early March, the severity of the coronavirus pandemic became evident and a steep decline in engagement began. Not long after a national emergency was declared on March 13th, engagement dropped to pre-tax season levels. For example, on March 14th, click through rates were almost 40% lower than the same date in 2019. 

That all changed once the CARES Act, a $2 trillion relief bill including economic impact payments for many American families, was passed. The promise of an unexpected windfall caused consumers to consider paying off their debts. Even before these stimulus payments first started hitting bank accounts on April 15th, there was an increase in engagement across all channels. That bump was short-lived, as engagement began a steady decrease shortly thereafter. 

3. Cash stimulus provided short-term financial stability for many

Despite the increased volume of payments, fewer payments failed in April and May than usual. In fact, for those months, there was a 35% decrease in failed payments year over year. This can be attributed to two factors: consumers preemptively modifying their payment plans in March and the sudden infusion of cash directly to consumers’ bank accounts. For some households, the combination of a tax refund, stimulus check, and additional unemployment benefits provided unprecedented liquidity. 

Unfortunately, that trend (and that liquidity) did not last long. By late May, an increasing number of payments were failing. While failure rates were still below pre-pandemic levels at the end of June, they are unlikely to decrease again without additional governmental aid.

4. Flexible plan options were key in fast-changing environment 

While resolving debts in full is the ideal for most consumers, it isn’t always possible. Most consumers choose to set up a payment plan that allows them to pay in smaller installments over time. In the first half of the year, consumers’ preferences for these types of plans rapidly shifted in line with changing economic conditions. 

While fewer consumers started new payment plans in March than earlier in the year, those who did choose to start a plan opted for a longer time horizon and lower monthly payments. This trend was accelerated by many creditors offering longer payment plan options to better serve consumers at the start of the pandemic. In mid-March, the average payment plan was 25% longer than ones started during tax season. As uncertainty loomed, it’s likely these people tried to minimize their cash outflows.

As more money was infused into the economy through the CARES Act, that trend reversed, with consumers once again opting to start payment plans around April 15th (a 22% increase from the previous week) and choosing shorter timelines. However, by the end of May, consumers were once again opting for longer plans, and signing up at a slower pace. 

Similarly, consumers flocked to modify their existing payment plans in March as mass layoffs and furloughs spread through the country. This behavior slowed to pre-pandemic levels once stimulus was introduced, only to begin rising again in late May. 

One thing is certain — the ability to set up and modify plans on their own terms was clearly important to consumers. Most consumers want to pay off their debts when possible, but in uncertain times, they may not be sure that they can afford to do so. Providing the freedom to customize a payment plan or lower monthly payments when necessary gives consumers the confidence they need to commit to a plan. 

What’s next?

As Americans spend the last of their stimulus cash, and unemployment benefits are due to expire, the future looks uncertain. While one-time stimulus empowered many consumers to resolve their debts, by late May, payment failures once again began to rise, even as payments slowed. What happens in the second half of 2020 will depend on many factors including additional governmental aid, employment opportunities, viral spread, and the presidential election.

No one can be certain what will happen next, but one thing is clear: consumers need the flexibility to pay off debt on their own terms. The first half of the year showed that consumers want to pay off their debts when possible, but in uncertain times, they may not be sure that they can afford to do so. As the world settles into a “new normal,” the industry will have to be prepared for unpredictable payments based on the ever-evolving economic situation. 

Want a deeper dive into the data? Download our report, Consumer Debt in the Age of COVID-19. 

New Report: Consumer Debt in the Age of COVID-19

By on July 7th, 2020 in Company News, Industry Insights

Today, TrueAccord released Consumer Debt in the Age of COVID-19, a report exploring how debt repayment and other consumer behaviors have changed throughout the coronavirus crisis. Based on aggregated, anonymized data from 12 million U.S. consumers, the report highlights that consumers choֵse to pay off debt when provided with an infusion of cash, even during a time of unprecedented economic uncertainty. Despite an initial slowdown as the crisis worsened in the U.S, debt repayment volumes hit a record high on April 15th, the day the first wave of CARES Act checks hit bank accounts.  

Key insights and trends from the report include: 

  • Consumers chose to leverage their CARES Act cash to pay down debt. On April 15th, there was a near-instantaneous increase in debt payments as the first wave of checks hit bank accounts. Payment dollars were 25% higher than the previous tax season peak. 
  • One-time stimulus changed consumer behaviors. With stimulus checks in hand, consumers flocked toward paying off their debt in full — the rate of lump-sum payments was 50% higher than the same period last year. The ones who did sign up for payment plans chose shorter payment terms with higher monthly installments. 
  • Payments will continue to be irregular. In early March, nationwide panic led to decreased engagement and payment activity from consumers. While stimulus payments and unemployment benefits empowered consumers to pay off debt in record numbers in April and May, that trend won’t remain constant over the coming months.

“TrueAccord has always known that consumers in debt aren’t villains or victims — they’re caught in a difficult situation, trying to optimize for day-to-day survival while managing their obligations,” says Ohad Samet, CEO of One True Holding Company, the parent company of TrueAccord. “So when presented with an unexpected windfall and fewer spending opportunities, many of these consumers chose to repay debt. This trend was especially clear for a company like TrueAccord, which puts consumers in charge, by providing self-service tools, rather than coercing them into making a payment.”

With an uncertain economy and the possibility of additional stimulus packages, debt collectors must be prepared for unusual spikes in engagement and payment in the coming months. In order to best serve consumers, they must streamline their processes to make it as easy as possible for consumers to pay their debts when they choose to and to modify their plans when they can’t. The report includes four recommendations that companies collecting debt can implement to update their operations for this unusual time. 

“Consumers have learned to expect digital-first solutions from their financial service providers, and the collections industry needs to keep up,” said Sheila Monroe, CEO of TrueAccord. “Our systems and processes empower consumers to engage when they want to, where they want to, using their device and channel of choice, and provide the flexibility to set up payment arrangements that fit their irregular schedules.” 

For more information, download the full report, Consumer Debt in the Age of COVID-19, here.

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Consumer Behavior During COVID-19 Crisis Provides Insights Into a New Era of Debt Collection

By on July 2nd, 2020 in Industry Insights

The COVID-19 crisis has rapidly changed the way individuals and businesses operate around the world, and with no clear end to the pandemic in sight, it’s unclear when, or how quickly, the economy will start to recover. To better understand the effect this uncertainty has had on debt collection, we analyzed data from over 12 million consumers of major banks, issuers, eCommerce companies, and direct lenders. 

In our upcoming report, Consumer Debt in the Age of COVID-19, we use this data to review consumer repayment trends, the role of stimulus checks in that process, and what debt collection companies will need to do to adapt.

Here’s what you can expect from the report:

  • Pre-coronavirus payment insights. In order to provide a benchmark for new or rapidly changing consumer behavior, we reviewed common pre-pandemic payment trends, like payment surges during tax season. 
  • COVID, CARES, and consumer concerns. We tracked consumer behaviors around engagement and payments throughout the crisis—from the onset to the declaration of a national emergency, passing of the CARES Act, distribution of stimulus checks, and beyond. Consumers were clearly concerned early in the crisis—engagement with debt was down 40% year over year in mid-March—but when stimulus checks provided an infusion of cash, consumers overwhelmingly chose to use it to pay their debts.

Click through rates plummeted in March as the crisis worsened, only to reach a record high post-stimulus.

  • What’s next for debt collection? As the crisis continues and consumer payments are slowing, debt collectors must adapt to survive. Based on the payment and engagement trends outlined in the report, we share four key steps debt collection companies can take to best serve consumers in the “new normal.”

If you’re interested in reading the full report, fill out the form below to get notified when it goes live.

Stimulus check payments surge over tax season trends

By on May 14th, 2020 in Industry Insights

Consumer debt in the US is climbing rapidly. A 1.1% growth to $14.3 trillion in Q1 of 2020 places the total debt higher than its previous peak of $12.68 trillion in Q3 of 2008. This growth may not be directly tied to the pandemic, but it does represent a large problem as a recession looms. Our teams have the ability to see some patterns and trends that arise in our repayment plans and consumer payment habits amidst these changes. Business partners span several verticals, and our data represents a broad spectrum of consumers in debt. 

A (not so) unexpected trend

In a typical year, like many other collection agencies, we see the highest volume of debt repayment when consumers use any tax return to pay down existing debt—February to the beginning of April. This year, however, an unexpected spike in late April and May dwarfed our Year Over Year trend thanks to the CARES Act stimulus checks. 

To put this into perspective, Americans received the first major wave of CARES checks on April 15, 2020. On that day, debt repayment volumes were 22% higher than on February 26, 2020, the first-day that tax refunds were disbursed by the IRS.

The higher volume of payment plans created and money spent were matched by an exponential increase in inbound consumer engagement, both over the phone and through our online portal. TrueAccord wasn’t alone in this trend either. Consumers flooded major debt collection agencies, who saw 2.5 times the inbound call volume and 2 times online traffic compared with a regular April day. TrueAccord’s CEO, Ohad Samet, had this to add:

We are actually not surprised by this. Borrowers that we work with are in a state of financial uncertainty most of the time, so crises like this are unfortunately not far from the norm for them. A sudden inflow of cash like a tax refund or a stimulus check is an opportunity to get on more sound financial footing by paying off debt. 

When they do have money, they go to brands they feel an emotional connection to, and TrueAccord has spent years building a reputation as a trusted partner for consumers in debt. That’s why we’re seeing an unusual surge.

The COVID-19 pandemic has impacted the global economy in unprecedented ways, but there is still some data that helps us understand what consumer spending habits can be expected in a recession. Maintaining communication with consumers affected by the pandemic and helping them to navigate this complex financial crisis is a necessary process.

Options empower consumers to pay when they can

Several states like Nevada and Massachusetts are restricting debt collection practices in an effort to stop collection calls during a time of potential sickness or unemployment.  However, as Samet mentioned, debt collectors regularly encounter consumers who are going through hardships that often lead to their indebtedness.

During times of financial stress, it is equally important that we provide consumers options and tools to manage their accounts as they see fit and when they are able based on their personal situation. As evidenced by the sheer volume of payments submitted in our system after consumers received their stimulus checks, consumers desire to pay down their debts when they have the financial ability to do so. 

There are many resources available for consumers that are experiencing hardships, and we want to empower consumers in debt to get back on their feet.  Kelly Knepper-Stephens, VP Legal & Compliance, explains:

As a collection agency, we can help by providing consumers with the ability to self-serve using tools that offer flexible options including non-payment options, such as options to dispute, apply for hardship, stop phone calls, or unsubscribe to emails. Consumers appreciate the opportunity to make all these decisions when they have the time and ability to do so, which is why it is critical to be able to provide consumers with 24-hour self-service options.  

Empowering the consumer with these choices and with the ability to communicate in the manner they prefer (which may or may not be over the telephone) can bring relief about existing obligations during a stressful time. A lack of options can feel restricting and stressful, and our data supports the power of choice.

Want to see how a digital platform can improve your consumer engagement? Reach out to us for more information!

What consumer repayment trends can we expect from a recession?

By on April 23rd, 2020 in Industry Insights

Financial institutions around the world are seeing massive changes to the way consumers are engaging with their finances. The COVID-19 pandemic and the growing recession are also changing the way that consumers are engaging with their debts.

During the 2008 financial crisis, we actually saw that “charge-off rates for subprime consumers increased only moderately relative to pre-crash levels” according to a white paper recently published by 2nd Order Solutions and Boston Consulting Group.1

The recent historic and exponential rise in unemployment rates and the rapid onset of an economic recession, however, also means that there isn’t a precedent for precise predictions. Thankfully, based on current trends and existing data, we can see some patterns beginning to emerge.

Based on a survey conducted by Bankrate, roughly 25% of Americans expect to put their stimulus checks toward paying off a debt, and 50% plan to use their checks to pay monthly bills. TrueAccord’s consumer payment trends support this information. Our teams saw a 120% increase in contact rates as the government deposited consumers’ stimulus checks, and even amidst the crisis, we are seeing a change in the way consumers are approaching their payments.

We’re seeing a shift in consumer preferences toward long-term payment plans, rather than one-time payments. While only 30% of payments made in April 2019 were from payment plans, a year later, we now see a near-even 50% split between plan creation and single payments.

Evolving technology meeting consumer needs

Another trend outlined by Boston Consulting Group’s whitepaper highlights the role of technology amidst a recession. 

“[Financial institutions] with a more sophisticated approach to communication fared better than their peers during the crisis. Multi-channel strategies spanning phone, SMS, and email, underpinned by predictive analytics and integrated data acquisition, are commonly seen at these financial institutions.”

TrueAccord’s digital-first collections strategy is showing us first-hand the power of enabling consumers to manage their own finances, at their own pace, even in a crisis. 

Wnat to learn more about how we’re reaching consumers? Get in touch with our team today!

Citations

  1. Boston Consulting Group, 2nd Order Solutions (2020) Winning in the Next Era of Collections: Preparing collections for a recession

5 tips for building scalable email infrastructure

By on February 6th, 2020 in Product and Technology

Using email as a channel for consumer communication seems like a simple way to dive into the digital revolution, but internet service providers (ISPs) actively develop tools to combat spam and abuse.

You may have the best intentions, but these service providers want to help consumers feel like they are protected which means blacklisting and filtering out junk mail. Unfortunately, emails sent by the untrained email sender can veer dangerously close to junk. 

This can make breaking into emailing consumers difficult, but it makes sending emails by the thousands (and millions) impossible without building email infrastructure that is sustainable and scalable. Establishing that infrastructure begins with recognizing the challenges you might face and then considering how to best confront them.

Why scaling email infrastructure is difficult

Email communication is heavily regulated by automated filters and systems in a way that more manual forms of communication aren’t. Cell service providers, for example, do not have nearly as much control over the volume or quality of calls that their customers receive. 

ISPs have dedicated engineers that design algorithms to keep their users happy, engaged, and protected from malicious senders, and an inbox packed with spam mail makes for a poor user experience. These algorithms are not perfect, and when they are designed, they lean on the side of being more restrictive than less which can lead to some misunderstanding. They may accidentally filter out an email from a legitimate sender that, according to their understanding of what is deemed safe, seems suspicious.

To make matters more complicated, each ISP has unique criteria that serve as the basis of their filtering rules. An email that is flagged as spam by Google could land safely in a Yahoo Mail inbox and vice versa. These rules are also constantly changing and updating to fight back against more advanced scammers making it impossible to create a one-and-done solution to properly sending emails at a massive scale.

Here are just a few things that spam filters analyze that you’ll need to consider:

  • Content: What do your emails say? Do you have any suspicious attachments or links?
  • Design: How do your emails look?
  • Sending time: Did your email arrive at 4pm or 4am?
  • Sending volume: How many of these emails did you send out at once?
  • Sending frequency: How often are you trying to email people?
  • Consumer engagement: Is anyone actually opening/clicking your emails?

Working to get all of these answers (and more) right is essential or you might find your email domain permanently blacklisted from one or all of the ISPs that you’re sending to. So what can you do to build a scalable infrastructure and work within these restraints?

How to successfully send email at scale

As we mentioned above, there isn’t necessarily a single, perfect solution for overcoming the innumerable hurdles to large-scale emailing. It takes dedicated and focused strategy to improve your long term inbox placement rates. Here are a few tips that our team keeps in mind as we continue to grow.

Create valuable content

The first step to making sure your emails are well-received by both users and ISP filters alike is creating the right content. Well-designed UX and carefully curated text are important, but it’s equally important that you steer clear of some phrases and keywords and trigger red flags.

Here’s a list of some spam trigger words that you might want to avoid!

Having a dedicated content team gives you the flexibility to create more personalized and more human messages that have a better chance at reaching your intended audience!

Talk to experts

We know we’ve been thorough, but fully understanding the challenges of sending email at scale isn’t something we can teach you in a few hundred words. TrueAccord has a full team of email deliverability experts on staff that can provide industry specific knowledge and know the ins-and-outs of different ISPs’ requirements. 

They also regularly audit our deliverability rates so that we can iterate on our processes and improve and help segment our domains and IP addresses as we grow.

Segment domains and IP addresses

Thankfully, our email experts can help explain what that last bit means. Segmenting your domains simply means building different domains that you can email consumers from. For example, some of your emails may come from emails@companyA.com and others may come from emails@help.companyA.com. The same goes for segmenting IP addresses; you may send some of your emails from your main office and others from your satellite office.

This process can help to limit the risk to your brand’s reputation with ISPs as you are less likely to take a big hit if only one of your many email addresses makes a mistake (e.g. bouncing frequently, receiving a lot of spam complaints, having many of its emails remain unopened). 

This process is intricate and methodical. Creating ten new domains can’t solve deliverability problems because brand new domains also lack authority. If an ISP’s filters see that a brand new email address is sending out 100,000 emails, it’s likely that it’ll be swept to the side. Which brings us to our next point!

Take it slow

Scaling your program too quickly is heavily penalized even among senders with high engagements. Many well-established companies that want to build a large scale email strategy with their existing customer base make this mistake, and sometimes there isn’t a way to fix it. Placing strict limits on email volume growth can help ensure that ISPs don’t flag your domain.

Track your data

Set your benchmarks, track your performance, and make changes as you go. Data is the life blood of a scalable email program. As you’ve seen, there’s a lot to keep track of, and if any segments of your strategy spring a leak, the ship might sink. 

By frequently and carefully monitoring performance—from open and click rates to inboxing rates to bounce rates—you can maintain a full view of your email strategy and make improvements as you build. 

No one has the power to flip a switch and send millions of emails per month without risk, but if you build slowly, you can lay the foundation for a successful email strategy. If you have any questions, let us know in the comments below! 

TrueAccord sends 40x more emails and has up to 70% higher inboxing rates than other collection agencies. Chat with our team today to learn more about what that means for you!