Consumer spending surged in Q3 2023, with U.S. retail sales growing for the sixth straight month in September. This has led to the exponential rise of consumer debt, inevitably building up as consumers look to buy everything from automobiles to apparel.
This growing consumer debt poses a significant challenge for creditors. Facing financial burden, consumers are making late payments or no payments at all on their credit card and “buy now, pay later” (BNPL) plans.
A Win-Win for Creditors and Consumers
The lifeline of every creditor is highly dependent on recouping outstanding payments. However, debt collection is a sensitive issue – especially when customers are embarrassed by their financial problems. When handled with empathy and centered on the customer, the collections process provides a prime opportunity to boost revenue while simultaneously strengthening customer loyalty.
“Efficient, empathic, flexible, and customer-centered debt collection brings multiple wins: consumers free themselves from the burden of debt, creditors get the payments they’re entitled to receive, and the entire process can preserve and even enhance a brand’s image,” explains Mamta Rodrigues, Teleperformance Global President of Banking, Financial Services and Insurance, in a recent article in Banking Dive.
How can creditors strike the balance between effective debt recovery and maintaining customer relationships? Creditors must first acknowledge that combining digitally advanced solutions with human empathy yields the best results.
Seamless, Empathetic Collections Services Powered by a Global Leader
Teleperformance’s debt collections services include data analytics and predictive modeling to deploy courteous, customized and predictive collections processes that build rapport with consumers, enabling non-confrontational and collaborative repayments. We also leverage artificial intelligence and machine learning to help reduce costs associated with the debt collection process.
Teleperformance achieved a 30% increase in collections revenue for their bank-issued credit card by using AI and machine learning to determine its customers’ preferred communication methods and likelihood of payment.
While consumer debt continues to grow, Teleperformance remains committed to helping creditors transform, refine, simplify, and improve their debt collection strategy.
While here, download our white paper “ A High-tech, High-touch Approach to Debt Collection” to learn more about Teleperformance’s collections services. Read Mamta’s article featured in Banking Dive in full by clicking here.