Tips to manage multi-channel debt collection

What is Multi-Channel Debt Collection?

Multi-channel debt collection refers to the use of various communication channels to contact debtors and collect overdue payments. These communication channels may include phone calls, letters, emails, text messages, and even social media messaging.

The goal of multi-channel debt collection is to increase the chances of successful debt recovery by reaching out to debtors through different channels and making it more convenient for them to respond and make payments. By using multiple channels, debt collection agencies can also tailor their approach to the preferences of individual debtors, which can improve the effectiveness of their collection efforts.

Overall, multi-channel debt collection allows debt collection agencies to be more efficient and effective in their debt recovery efforts while also providing debtors with multiple options for resolving their outstanding debts.

What is Multi-Channel Messaging?

In multi-channel messaging, businesses reach out to their customers across multiple channels, and these channels can communicate with each other. When companies use various digital channels to keep in touch with their customers, it is multi-channel messaging. Using AI-driven two-way messaging on WhatsApp, Viber, WebChat, Messenger, and others gives excellent results.

Digital communication is extremely popular with the current generation, and keeping that in mind the best way to connect with customers is by using these channels. Everyone owns a smartphone nowadays which makes text messaging and sending emails easier. The hassle of switching on your laptop to send messages is not there anymore. Your smartphone will do it for you easily and instantly. Two-way texting and conversations are good when it comes to gathering information and getting a response. These digital conversations work well when it comes to interacting with customers.

AI chatbots and collection chatbots can handle basic communication and guide them properly. The collection agents can handle the more complicated ones, thereby enabling customers to save on their time and the company to save on its resources. You need to set up your chatbot in one channel, and that will give you access to all the channels you wish to use. 

If you look at the current mobiles, you will find that they all offer many multimedia tools. You can use these tools to click pictures and instantly send them on one of the messaging apps, send IDs instantly, and conduct live surveys.

You can incorporate third-party engines like payment getaways which enable you to complete everything in one go. One agent will be able to handle many conversations because the apps can switch between these messaging channels and guide the agent effectively. Customers usually use the channels that suit them, but you can add those channels to contact them. The conversation recordings can help collect the data for analysis. 

Studies have proven that companies that use multi-channel messaging retain most of their customers, whereas those that do not use it, do not.

Customers prefer multi-channel messaging for many reasons:

• They find it comfortable talking with a bot.
• It is fast.
• The data is available instantly and it is accurate.
• Customers can consider their responses.
• They can make avail of the self-service options.
• They can take their own time and respond.

The most active multi-channel messaging apps are:

• Facebook Messenger
• Snapchat
• Telegram
• Viber
• WeChat
• WhatsApp

The multi-channel debt collection is easy to use in these apps.

Managing Multi-Channel Debt Collection

The challenges to managing multi-channel debt collection are many. Most companies start with SMS messaging and then spread out to other channels. It will be easy for teams to analyze, test, and know how to improve the efficiency of the communication.

1. Adopt an Omnichannel Strategy

Omnichannel digital communications help reach debtors faster via channels they are comfortable using, like text messaging, emails, and chats. Businesses and companies can gain a positive outcome using these channels.

2. Artificial Intelligence

AI (Artificial Intelligence) voice generator can power human-like voices using chatbots, and debtors can feel personal, and there will be an increased improvement in the responses and collections. The advantage of artificial intelligence is that it will be able to know the best time of the day when the debtors can be contacted and the best channel that can be used to get in touch with them. The overall performance of debt collection will be enhanced by using artificial intelligence. Customers can relate to AI-led conversations.

3. Business Intelligence and Analytics

Business intelligence data and analytics are a good way of digital collection. A debt collection software will help to run complex algorithms and process large data sets so that companies have knowledge on how to make their omnichannel strategy successful. This knowledge is good enough to bring about operational changes that will make the company strong and get the results they are aiming for.

4. Machine Learning

ML (Machine Learning) like artificial intelligence, benefits customers and creditors alike. It helps them bring in dramatic changes in debt collection. Machine Learning can also recognize the best time of the day to message the debtors, and the best channel that can be used to connect the debtors. The chances of getting a response are high when you use this.

5. Point Solution Approach

The Point Solution Approach is a multi-channel approach that looks simple but is not that simple and straightforward when it comes to using it.  In this, the individual channels are utilized by different vendors. The communication to the debtors is sent through different channels on an ad hoc basis, and at specific times of the day. This multi-channel approach requires manual intervention to make things run effectively:

• The dialer campaigns must be ready in the morning and then loaded.
• The dialer should make sure it is running smoothly.
• All SMS campaigns must be created manually, and they should be sent at intervals so that the customers do not feel inundated with the number of attempts made to contact them.

In the end, what is important is the fact that a Point Solution Approach requires manual interference to have a smooth run.

6. Self-Service Portal

Earlier phone calls, letter writing, and field agents were some of the ways used for debt recovery but that has changed now. Most customers prefer self-service and that can be achieved by having collections software. It is the best way for customers to manage their debts and payments from anywhere using this portal. This improves customer service and debt recovery rates.

Wrapping it Up

Debt collection can be challenging and time-consuming, but if you use digital-based debt collection methods, like multi-channel messaging using conversational AI, it becomes easier. Multi-channel debt collection has caught on in recent times and it is a good way to leverage the debt collection parts with the help of its certified digital platforms and digital mail delivery. Knowing more about multi-channel debt collection will help companies recover more from their customers. Digital-based debt collection can cause disruptions, but if done properly is the best way to make collections a success.