6 Ways to Improve Collections and Payment of Dues

Debt Collections Software

It is seen quite often that customers forget about paying bills, repaying loans, and performing credit card payments on time. It is not always that they don’t have any intentions to pay the bills, they need reminders to make timely payments. 

If you are too facing the same issues with forgetful customers, this write-up is for you!

Imagine what it must be like for a collections agent. How can one agent remember the details and deadlines of hundreds of customers? Do they keep a track on their calendars for each client? Well, if you are a smart collection agent/organization, you realize that the whole process can be made simpler. Prioritizing the customers who need to be contacted first and implementing timely collections strategies can dramatically minimize write-offs. 

Debt Collection Automation Is One Answer To All Your Questions!

Here are six most effective ways that you can surely implement with a right debt collection and recovery software in place.

  1. Segment Customers: Collections includes debt recovery of secured and non-secured debts in financial and non-financial domains such as automobiles, hospitality, entertainment, and telecom. Segmenting the customers is critically important in a collections business. Different approaches should be followed for customers having good payment records and those having a delayed/irrecoverable payment history. This can be done with a debt collection management system.

  2. Install a Debt Collections Software Solution: Since collections calls are all outbound, having an automated dialer as part of the contact center software maximizes customer outreach. You can feed in algorithms for dialing out and the system will intelligently register responses, payments made, and other updates to the customers data.

  3. Choice of various payment options: Every customer is different and each prefers different methods of payment which are convenient to their time and needs. Collection centers can offer various even customized payment modes. This will help expedite collections and allow customers to make payments based on their convenience and most importantly, on time.

  4. Tracking each client: Having an efficient tracking system is the key to successful collections operation. Agents can take actions quickly when they see unpaid or paid notifications on the system. The software will display the details of the customer, their last date of payment, and the next payment date.

  5. Discounts to avoid late payments: Incentives drive customers to buy, and they may well apply to collections as well. One way to ensure your collections on time and without hassles is to offer discounts to drive your customers for faster payment. However, ensure that you have not extended the payment periods as it may prove detrimental to the business.

  6. Use multiple reminder channels: With a robust solution, you can employ various ways to remind your customers. Use a broadcast dialer for early stage collections and this can be coupled with SMS and e-mail capabilities. Exploit additional collections capabilities like Assign to field, Update silo, One-click reminder, and e-mail and SMS templates. Use customized CRM with relevant key fields and shortcuts for quick issue resolution.

Debt Collections Software

Collections Made Easy with Debt Collection Automation

The major goal of a debt collection or loan recovery company is to maximize collections and reduce customer frustration. This can be done by refining the strategies that do not work and deploying quick and innovative methods. A debt collection and recovery software ensures automation, complex algorithms customized to your processes, and an easy-to-use interface. After all, collections are half done by maintaining and updating correct records, timelines, and reminders. The rest is the human connection which helps customers be proactive and diligent. So, has your collections center employed a robust solution yet? If not, request for a free live demo now!

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