Creating a positive experience in collections

by admin on July 26, 2021

Businesses can no longer expect to build their brand through advertising alone. They need to create positive experiences for their customers. Banks and fintechs have been focused on enhancing and improving customer experience (CX) for decades, but these efforts are mostly focused on front-end acquisition and portfolio management. Positive CX needs to run throughout the entire organization, including negative customer actions, like missing a payment, resulting in a delinquent account.

Managing the customer journey and creating a positive customer experience shouldn’t end if a customer enters collections. After all, only a small percentage of customers that go delinquent actually charge-off and become customers you wouldn’t want.

So why do so many financial institutions rely on old system-generated letters that:

*lack the ability to leverage breakthrough creative,

*have no strong call to action,

*have no response device to make it easy for the customer to make a payment,

*don’t leverage any promotional offers, and

*only see their customers as numbers of days delinquent?

Many collections organizations have been too focused on ratcheting down costs. There needs to be a shift in focus from cost to revenue creation. Convergence Group engineers collections marketing direct mail which may cost a little more than a system-generated letter, but require only a fractional lift in dollars collected to break even, let alone generate incremental revenue. Our use cases have demonstrated that the incremental cost is easily recovered in the improvement in roll rates and reduction in charge-offs, not to mention the impact on overall customer satisfaction.

Our marketing transformation process uses sophisticated data analytics, strategic creative, carefully managed selection criteria, and end-to-end program execution. We help close the gap between brand promise and the customer experience. Rather than serve one party’s need to collect, a marketing orientation focuses on satisfying the other party’s (i.e., the debtor’s) needs. By identifying and leading with those behavioral drivers, collectors can connect with debtors in a whole different way, and generate better results, faster.

Call us at 302-234-4901 or email us for a free consultation. We can have a customized solution for your business that can be in market in just a few short weeks.

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