Engaging with People in Debt: A guide for Embracing Digital Solutions

Balancing automation with personal touch in debt interactions
By Emmanuel Catachanas and Mark Bruckshaw,

Embracing digital solutions in collections and recoveries is no longer an option; it's a necessity. Consumers today expect the convenience and speed that digital channels offer. However, it's crucial to strike the right balance between automation and maintaining a personal touch. By leveraging data, automation, and empathetic communication, collections teams can not only meet but exceed customer expectations while optimising their operations in this ever-evolving landscape. In our blog post below we explore what we and the industry are doing in this space and how to get that balance right.
To succeed in collections and recoveries today, it's crucial to align your strategies with consumer expectations. In 2023, 40% of our customer contacts have been via digital channels. This includes email, SMS, mobile apps, and online portals. This shift in expectations highlights the need to invest in digital solutions that facilitate seamless communication and self-service options.
Our new digital customer engagement solution is designed to empower customers and reshape debt resolution. Our product offers an innovative solution, using our wealth of data insights to drive personalised, appropriate customer outcomes, allowing individuals to regain control over their financial journey.
With this solution, customers can access self-service digital pathways. They can make payments, create affordable payment plans, and seek additional support – all at their convenience.
Marking a significant shift in how customers engage with their debt, putting them at the centre of the process.
While automation can significantly enhance efficiency and effectiveness in debt collections, it must be balanced with a personal touch.
Here are our top five tips to maintain a human connection while embracing digital solutions:
1. Segment
Use data-driven insights to segment your customer base. This allows you to tailor your communication strategies, ensuring that the right message reaches the right audience.
2. Personalise Messaging
Craft personalised and empathetic messages. Address customers by name and acknowledge their unique situations. This helps build trust and rapport.
3. Be Dynamic
Respond and adapt to consumer needs throughout interactions, fostering a sense of immediacy. Ultimately, mirroring the dynamic nature and complexities of real-life interactions. Improving outcomes for all.
4. Educate and Empower
Empower customers with educational resources and self-service options through your digital channels. Providing information on repayment plans, financial literacy, and how to navigate the process can foster a sense of control.
5. Provide Support
Offer avenues for customers to reach out to a human agent when needed. Sometimes, a compassionate conversation with a real person can make all the difference in resolving a debt issue.
We believe that by finding the right balance between automation and a personal touch, collections and recoveries teams can enjoy several benefits:
- Improved customer satisfaction
- Higher repayment rates
- Reduced operational costs
- Enhanced compliance with regulations
- Faster resolution of delinquencies
Are you ready to embrace the digital transformation in collections and recoveries? The future is digital, and finding that equilibrium between technology and human touch will be your key to success.
Find out how