The Carrot + the Stick of Collections

by admin on November 24, 2020

As long as debtors have been late with payments, collection activities have largely followed the same basic script: Ask nicely, ask forcefully, demand, threaten, charge-off. Most creditors rely on outbound calling strategies to do the heavy lifting and simply view their letter strategy as a compliance tool.

For the most part, this strategy has been effective for creditors. But with debtors becoming increasingly savvy at filtering, blocking and avoiding calls—combined with increased regulations and fines for improper calling methods—creditors need to evaluate ways to improve their techniques for engaging with delinquent customers.

Today most customers have multiple credit card accounts, student loans, auto loans, mortgages, and more. Once a customer goes delinquent with one creditor, chances are they’ll be delinquent with others. The challenge is how to break through all the noise and get your fair share of the limited and shrinking payment pie.

Bringing a marketing mindset into the mix can dramatically improve results. A tried-and-true advertising and sales principle from the 1800’s still resonates today: AIDA. It’s is an acronym for Attention, Interest, Desire and Action. Like the marketer, the collector needs to:

*combine breakthrough creative with compelling headlines to grab the debtor’s attention

*use subheads and bulleted copy to gain interest

*create desire by developing offers and reinforcing necessity

*reinforce a strong call to action

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.

Convergence Group has taken a leading position in helping organizations improve their collections process and the customer experience. Using sophisticated data analytics, strategic creative, carefully managed selection criteria, and end-to-end program execution, we help collectors hone in on critical motivators that compel action.

1.) What if the initial collection letter, usually designed to look intimidating, looked more like a personalized, customer benefit direct mail letter?

2.) What if the “offer” was placed prominently on the page, in the sweet spot where the reader’s eye lands first? (Direct mail gurus call this space the Johnson Box.)

3.) What if you could use data analytics to determine what types of “offers” are most likely to resonate with specific debtors? And when is the best time to present these offers?

By implementing and executing these proven strategies  we’ve helped clients ramp up their collection efforts—and their ROI. We’re getting results in situations that were headed toward near-certain charge-offs. And suddenly, the prospect of selling uncollectible debts for pennies on the dollar is dramatically reduced.

Interested in learning more about our innovative marketing-driven collections solution? Call us at 302-234-4901 or email us for a free consultation.


Geo-conquesting is an excellent tool to identify and steal customers from your competitors.

Tracking the physical locations consumers visit can indicate a more committed buying intention compared to following their digital journey. Our technology allows you to identify anonymous prospects and/or target your competitors’ customers and prospects. Our geo-conquesting approach turns anonymous prospects into identifiable leads who can be reached through a range of omni-channel executions such as real-time digital ads, post-visit digital ads and direct mail.

Many rely on Geo-fencing technology that uses the location services on a consumer’s mobile device but there are three main downsides to this approach:

1. Geo-fencing uses cell phone towers to triangulate the consumers position which limits precise location accuracy due to the nature of triangulation.

2. The consumer must have location services on their mobile device turned on. It also requires them to agree to share their location with a specified app or marketer before a digital ad is served.

3. It’s limited to real-time ad serving, which means advertisers can only reach the consumer when they are within the geo-fenced

The better approach is to use the patented Geo-framing approach to discovering mobile devices within specific geolocations. This approach uses the ad serving data from third-party apps or websites (such as Waze, The Weather Channel, Candy Crush, etc.) which the consumer has already provided consent when they downloaded the app.

There are several benefits to this approach:

*The ability to target a very specific location correlating latitude and longitude data, which is accurate down to a square meter. This enables marketers to specifically target a store and or parking lot of the competitor’s location without overlapping other businesses. So, if you’re a Ford dealership and you want to target the customers of the Chevrolet dealership, you can specifically geo-frame that dealership building and the parking lot.

*It allows for real-time ad serving while on location.

*It provides the ability to continue digital targeting post-visit to the device as well as other devices connected to a consumer’s home IP network.

*It identifies the consumer’s home address allowing you to leverage direct mail directly into the household.

Imagine your business is a supermarket and you want to identify and target mobile devices at a competitor’s store—how could you? Or you sell pet products and want to target mobile devices at the local dog park? Or a cruise line with mobile devices at the cruise terminal boarding a competitor’s ship?

Convergence Group can help you identify and target people at your competitor’s location or other specific locations and entice them to purchase from you. Call 302-234-4901 or email us today to explore how we can help you.

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