Customers react to debt collection in a variety of ways. It ranges from those who have the capacity to pay but may have forgotten or deprioritised the payment, to those who are financially unable to pay, and finally, those who deliberately refuse to pay. Throughout this spectrum, customers often experience emotions like denial, stress, fear, and panic. A common example is when a customer feels overwhelmed and chooses to avoid any form of engagement, ignoring phone calls, letters, and digital communication attempts.
When speaking with our clients, one of the most frequent challenges I hear is: How do we engage customers who have shut down communication? Repeating the same collection activities, such as scripted phone calls from contact centres, or continued unanswered digital attempts often yields diminishing returns.
In the debt collection industry, efficiency and effectiveness are key. Debt collection managers are constantly seeking innovative ways to maximise recovery rates while maintaining positive customer relationships. At Access Mercantile, our integrated collections model, ACE (Access Credit Ecosystem), enables us to uniquely respond to customer behaviours. Supported by highly trained experts, we adapt and shift activities within our team seamlessly, ensuring that customer engagement is achieved while interacting with a single, trusted provider.
One approach that has proven particularly effective is our Knock2Engage solution. Knock2Engage involves making personal visits to customers at their homes or workplaces, which opens new avenues of engagement and debt recovery.
Why Knock2Engage Works:
- Face-to-face engagement: Meeting customers at their residence or workplace makes it hard for them to ignore the interaction.
- Fully compliant: Our agents vary visiting times and maintain persistence, always working within ACCC/AFCA guidelines.
- Perception of escalation: Customers often view this as a significant escalation in the debt recovery process, which prompts them to prioritise clearing their debt.
Our clients are increasingly using Knock2Engage beyond traditional collection activities. For instance, it has proven invaluable in reconnecting with customers who have stopped responding during hardship applications. Once engagement is re-established, our agents, through careful discovery, assess the customer’s capacity to pay and set up a collection arrangement. With the delegation to enter into payment agreements, our agents also monitor and manage these payments, ensuring compliance and success.
Benefits for Clients:
Higher Recovery Rates: Knock2Engage has a proven track record of improving recovery rates by re-establishing contact with customers who have disengaged from traditional collection methods. This leads to quicker settlements and higher collections for our clients.
Cost-Effective Solution: By re-engaging customers earlier in the process and creating effective payment arrangements, our clients benefit from reducing the cost of prolonged delinquency and the need for further legal action.
Enhanced Customer Relationships: Our face-to-face engagement not only facilitates better communication but also helps preserve relationships. Customers are more likely to cooperate and clear their debts when they feel understood and respected, which is crucial for maintaining your brand’s reputation.
In today’s collections environment, thinking outside the box is essential. At Access Mercantile, we provide innovative, practical solutions that truly work. Whether it’s overcoming communication challenges or re-engaging disconnected customers, Knock2Engage is a game-changer for efficient, effective debt recovery.
You can learn more about our integrated collections model - ACE (Access Credit Ecosystem) at our website www.accessmercantileservices.com.au/services