Enhancing Collections with Human-Centered Engagement: 'The Right Way Forward'

Unfortunately, some debt collection agencies do not care about, measure, monitor or manage ‘customer experience and engagement as a critical metric within their business and tend to adopt ‘heavy handed collection tactics’ to resolve outstanding debts without first trying to explore more amicable solutions. These tactics may include excessive and escalated collection treatment, immediate referral to lawyers for litigation or just making unrealistic demands without really understanding the customers current financial position and attempting to first explore alternative mutually beneficial options.

In the modern fast-paced world, the approach, mechanism,  and manner of communication is extremely important as the message itself. Simply taking a one size fits all approach doesn’t generate true engagement and trust. For example, blasting out generic digital notifications or notices of demand without understanding the customer profile and preferred method of engagement can create increased customer adversity and limit the opportunity of real engagement or trust. Understanding your customers situation best you can and then communicating meaningful and tailored messages followed by aligned solutions linked to the customers current financial position and expectations makes a substantial difference.

After many years in the collection’s profession, it has become clear to me that collections are fundamentally about first and foremost ‘knowing your customer,’ [usually performed through detailed customer and risk profiling], aligning the best method of contact,[performed through champion / challenger test and learn contact & channel campaigns], to narrow down best contact approach based on customer responsiveness and preferred method of contact. Once this pre-work has been completed, the debt collection agency representative has a higher rate of successfully engaging with a customer allowing them to perform the most important part of the resolution process which is educating the customer about solutions that meet their needs and ultimately providing them with relief.

Education involves informing customers about their financial options, rights, and the positive consequences of engaging in resolution actions. By educating customers, we empower them to make informed decisions, which can prevent future financial challenges and break the cycle of debt. Relief, on the other hand, is about offering tangible solutions that are tailored to each individual's situation. To deliver this, the customer must engage with us, and this raises an essential question: How do we engage effectively now that we have made contact?

Effective engagement goes beyond mere interaction; it involves having the right interaction. The key elements include:

1. Choice of Words: Using language that is clear, respectful, and non-threatening.
2. Invitation to Resolve: Encouraging customers to take steps toward resolution in a supportive manner.
3. Active Listening: Truly understanding the customer's concerns and needs.
4. Empathy: Demonstrating genuine understanding and concern for the customer's situation.
5. Non-Threatening Language: Avoiding aggressive or confrontational tones.
6. Building Trust: Establishing a foundation of reliability and sincerity.

Receiving a collections call or notice can be an intimidating experience, often leaving individuals feeling trapped without any options. This feeling is amplified when no solutions are presented. Many of our clients offer multiple avenues to help customers escape the debt cycle, including government grants, reduced settlements, proper planning, hardship assistance, and long-term arrangements etc. As responsible representatives of the clients, our role is to engage effectively and convey the comprehensive message, educating customers about their available options.

At Access Mercantile, we care about customer experience and hold ourselves accountable to critical metrics that matter to ensure that we always carry out important collection’ functions with the customer front of mind. For example, our written communication is in plain English, eliminating unnecessary jargon and confusing language. This clarity extends to our conversations, which are ‘human,’ unscripted, non-robotic  and empathetic, focused on providing resolutions and building rapport. Across our Field service function,  we offer our ‘Knock2Engage’ approach further personalizes this engagement by having field agents interact with customers at their doorsteps if other forms of customer contact have failed.

In summary, effective engagement in collections revolves around first understanding your customer [profile and pre work], aligning best method of contact, through to education and ultimately providing debt relief through tailored solutions.