Customers react to debt collection in a variety of ways. It ranges from a customer who has capacity to pay, who may have forgotten (or places payment as a low priority), those who don’t have capacity to pay, and those who deliberately refuse to pay. Customers may go through a variety of emotions – denial, stress, fear and panic. A good example of emotions driving behaviour, is when a customer feels overwhelmed, and chooses to ignore attempts to engage with them, ignoring phone calls, letters, and other contact means.
Quite simply, field visits work, because;
Engagement occurs at the customers residence (or place of work) – hard to ignore engagement.
Persistence by agents, working within guidelines – agents will vary visiting times to reach a customer.
Customers see field visits as an escalation of the debt recovery process – the result is a high priority to clear the debt.
How Access Mercantile are harnessing the power of field collection to optimize debt recovery strategies.
In the world of debt collection, efficiency, and effectiveness are paramount. Debt collection managers are constantly seeking innovative methods to maximize recovery rates while maintaining positive customer relations. One approach that has proven to be highly advantageous is field collection. Field collection involves reaching out to debtors in person, either at their homes or places of work, to negotiate and collect outstanding debts. In this article, we will explore the numerous benefits of field collection and why it is a powerful tool for debt collection managers.
1. Personalised Approach: Field collection enables debt collection managers to adopt a personalised approach when dealing with debtors. Face-to-face interactions build trust and rapport, allowing debtors to see the human side of the collection process. This personalised touch can lead to more open communication and a higher likelihood of reaching mutually agreeable payment arrangements.
2. Enhanced Communication: In-person communication is often more effective than phone calls or written notices. It allows debt collection managers to address debtor concerns and objections immediately, clearing up misunderstandings and providing clarity on the debt situation. This direct communication can result in faster resolutions and payment commitments from the debtor.
3. Increased Recovery Rates: Studies have shown that field collection can significantly improve debt recovery rates. When debtors see the seriousness of the situation and the willingness of the collection team to engage personally, they may be more inclined to prioritize their outstanding debts. The sense of urgency created during face-to-face meetings can lead to quicker payments or suitable payment plans.
4. Access to Additional Information: Field collection often provides opportunities to gather valuable information about debtors' financial situations, enabling debt collection managers to assess their ability to repay. Understanding debtors' circumstances better allows for more informed decision-making when negotiating repayment terms, resulting in solutions that are realistic and sustainable for both parties.
5. Negotiation and Flexibility: Field collection allows debt collection managers to negotiate directly with debtors and tailor repayment plans according to their individual circumstances. This flexibility can lead to more successful payment arrangements, as debtors are more willing to commit to a plan that suits their financial capabilities.
6. Relationship Building: Field collection offers a unique opportunity to build positive relationships with debtors. By demonstrating empathy, understanding, and a willingness to help, debt collection managers can transform debtors' negative perceptions of the collection process. This shift in perception can foster a cooperative attitude, making it more likely for debtors to meet their obligations.
In conclusion, Field Collection provides a range of advantages for debt collection managers seeking to optimise their debt recovery strategies. From personalised and effective communication to increased recovery rates and relationship building, the benefits of face-to-face interactions cannot be overstated. By embracing the power of field collection, debt collection managers can achieve higher success rates, improve debtor relations, and make significant strides towards financial recovery for their organisations. If you would like more information – please get in contact via our website : www.accessmercantileservices.com.au