Unpredictable global economic conditions, the European Central Bank’s rising interest rates, high inflation rates, and utility increase bills have significantly changed household financials and have influenced companies' work. Changes in customer behavior have been sweeping, with many relying on credit cards for utility bill payments and facing rising indebtedness due to unemployment and a non-increase of wages. 

Rising indebtedness is not only experienced by individual customers, but businesses are also lending more. Utility and telecommunication companies are increasing the value of their account receivables, and small and medium enterprises are extending their day's sales outstanding. Responding to these challenges requires shifting from survival mode to a holistic approach to customer support and debt recovery, considering the interplay between market conditions, business situations, and customer behavior.

The debt recovery process has undergone a remarkable transformation. Gone are the days of traditional one-dimensional approaches, outbound dialing repeatedly from point A to point B. When we understand the importance of meeting customers on their preferred communication channels and adopting omnichannel solutions, we can engage with customers in a more personalized and meaningful way. A customer-centric approach improves the overall experience and maximizes the chances of successful debt recovery.

How to Address the Challenges

Thanks to the continuous evolution of tools and strategies and regulatory changes, we can now implement innovative debt recovery strategies that were not possible before. The low descriptive analytics gave way to predictive analytics and are being gradually replaced by perceptive AI-led methods. The adoption of digital multichannel communication is quickly being replaced by hyper-automation. On the empathy spectrum, we progress from a high-touch approach to creating an empathy-driven customer experience supported by individual and vertical hyper-customization that will supplant persona-driven targeting. Data security will be enhanced with proactive and privacy-driven processes, pushing out current reactive practices. Lastly, we are testing Beta Phasis, an elementary support of AI that will evolve towards real-time assistance to our agents and have impressive improvements in call negotiation rates, payment commitments, average handle time (AHT), and after-call work (ACW) reductions, and many others in each call. 

The mentioned scenarios are currently unfolding, representing an evolutionary process rather than a sudden revolution. Now, let's briefly explore the most efficient tools that can aid companies in achieving their objectives.

Analytics: Two primary goals of businesses – cost reduction and revenue increase – can be achieved with an AI-backed analytics platform that provides omnichannel-segmentation-based collections strategies that make contacting and engaging customers in a more convenient and quicker way.

Performance management: The future includes AI coaching to improve interactions with all consumers as well as improve overall retention, cure rates, reduce charge-off, and improve overall dollars collected while also providing compliance oversight. Advanced interaction analytics consolidate data from multiple communication channels, such as calls, emails, texts, and after-call surveys, and assist in achieving seamless omnichannel communication.

Automation: A multilingual, conversational AI-driven platform that kicks off workflows without human intervention can automate repetitive tasks and free up the workforce for more complex tasks. It gives agents the context and intelligence they need to tackle customer queries through other communication channels. An important thing to remember is that at the end of the day, the human touch still matters. Empathic and customer-centered collections processes that are boosted by technology can bring 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.

Digital analytics has proven to be a game-changer. Knowing whom to contact, when, and through which channel is essential to the success of a debt recovery strategy. 

There has been a notable transformation in analytical and predictive technologies in the past two years, enabling companies to analyze vast volumes of data and streamline debt recovery processes. These solutions are readily accessible to businesses, and when combined with a well-defined strategic approach, they can deliver substantial value within a short timeframe.

In the upcoming articles, we will delve deeper into the trends, challenges, and strategies to overcome them. Stay tuned!

Boost your collections strategies by partnering with a global leader today. Contact Teleperformance to learn more about our digital business services!