Communication Channels
The call center brings along with it a
dilemma that touches on another critical
issue for the debt recovery efforts known
as customer sentiment. Even if your call
center makes contact, the customer, who
is probably at work, is unlikely to settle
there and then. Modern consumers are
more averse than ever to speaking on the
phone, let alone willing to discuss a topic
as tough and sensitive as debt.
For most consumers, chatting, messaging
and email are much less intimidating. The
perceived threat of conflict is minimized,
and if your customer feels less threatened
then they are more likely to engage with
you.
Chatting – in the era of WhatsApp and
Facebook Messenger – comes altogether
more naturally than a phone call. One is
compelled to think that providing modern
communication methods might be what
your organization needs to get impaired
loans back on track.
It is worthwhile therefore to provide
multiple communication methods, which
may suit customers not just relying on one
or a few leaving out a group of customers.
Self-Service Portals
Talking of self Service Portals, perhaps
no industry has embraced a self-service
ethos quite like banking and the mobile
loans providers. It’s quite rare, these days,
for a customer to visit a branch. It is not
necessary: most things you need can be
done online, including loan applications.
This trend toward self-service is not just
confined to banking and lending related
institutions. These days, in Kenya we are
talking about ‘the self-service economy’
in sectors as diverse as retail, restaurants
and software. It is a trend necessitated by
consumers’ ever-increasing expectations
around service. This has permeated in all
if not most sectors of life.
As these continue to grow and your bank’s
employees are overstretched, self-service
becomes the only answer. Lucky enough,
a wealth of products and solutions exist to
cater for this consumer trend not leaving
out the debt recovery aspect.
Debtors want to settle their debts quickly
It is strange to see
how far loan collec-
tions and debt re-
covery have lagged
behind this shift to
customer-first oper-
ations. But things are
beginning to change.
Many financial insti-
tutions are now turn-
ing to technology to
bring collections into
the digital customer
engagement area for
ease of engagement.
and satisfactorily and could simply be
unaware of their options. The question for
lenders is not how to make customers pay:
it is how to make it easier for them to do
so. The answer lies with self-service.
Putting Customer
Experience First
On the surface, it seems a little odd to
approach debt recovery from a customer
experience perspective. If a customer has
become delinquent, they are obviously
not having a good experience. Customer
experience should be central to every stage
of the customer life cycle – including and
especially one who is struggling to repay
his/her debts.
It is a time when your customer needs
you the most. Providing the right tools
and services for them to salvage their
debts can easily blossom into a positive
interaction. By utilizing apps and self-
service technology, you can put customer
experience on the front and center stage.
Collection is not a place where you exile
of banish bad customers. It is an after
sales support service. A clunky, unfriendly
experience could cost you a good, loyal
client. After all, it costs five times as much
to attract a new customer than to keep an
existing one.
Continuous Feedback
The saying goes that if you do not ask, you
do not get. Customer surveys are a simple
but highly effective way to understand
exactly what your customers want and
what they think of your debt recovery and
collections.
The key here is asking your customers in
a non-intimidating survey environment.
The more private, the better. Consumers
are more likely to provide honest feedback
when they feel safe. Online surveys are
the easiest way to create this atmosphere.
After all: where’s more non-intimidating
than your customer’s home?
A well executed survey allows you to learn
about what motivates your customers and
what is important to them, and gather
meaningful opinions, comments, and
feedback.
Conclusion
Most experts in credit management
know that Debt recovery can be a win-
win situation for your customers and for
you, the lending institution. Instead of
punishing delinquent debtors, the process
can help struggling customers, bringing
them back on board.
Thanks to technology, it is never been
easier to do this. It has served this by
aligning debt collection to consumer needs
and Customer Service, debt recovery
can be accessible, simple, intelligent and
exciting. It is a vision of debt recovery that
I am immensely excited to share. You and
your organization could be a part of it, too.
Wasilwa Miriongi is a certified Credit
Professional currently working as the
Managing Director, Del Creder Credit
Management Limited. You can engage
him on this or related matters via email at:
[email protected].