3 Top Reasons Why Collection Agencies Need An Omnichannel Engagement Strategy
- November 17, 2022
- Category: Omnichannel Collections
The collections landscape is changing like never before against the backdrops of ever-evolving consumer protection laws and emerging collection technologies. Thanks to technological advances made in the space, today consumers expect debt collectors to reach out to them across channels as they choose their preferred mode of debt repayment. This explains why (as per V12data.com) companies with strong omnichannel consumer engagement manage to retain 89% of their customers.
The omnichannel engagement model empowers collection agencies to weave all possible consumer touch points into each other. It can help you to develop an effective approach in delivering an improved consumer experience at reduced costs. Let us understand how.
1. Faster, more intelligent communication
As per a ‘Reviews.org’ survey conducted in 2022, on average, Americans spend nearly three hours every day on their phones. In such a scenario, collectors need to learn to use platforms and technology that engage with smartphone users.
An omnichannel approach to consumer communication can enable you to send consumers personalized messages on their phones (after their consent), with the agent coming online only for more complex queries. This way, the costs of hiring a big fleet of agents can be reduced drastically by just engaging consumers through self-service platforms. With an omnichannel engagement model, it is much easier to track consumers’ actions. As a result, you can execute resolutions of consumer queries faster as time spent on tracking consumer information (while putting them on hold) can now be used to help them navigate their challenge.
2. Increased revenues and lower costs
Studies suggest that you can reduce charge-off by implementing the agent and self-service approach together. As per V12data.com, an established omnichannel approach can help you grow year-after-year revenue by 9.5% compared to companies with weak omnichannel engagement. Strong omnichannel companies also notice a 7.5% decrease, year after year, in cost-per-contract. The opportunity cost for companies without an omnichannel plan is a 10% loss of potential revenue – equivalent to the annual growth target of many companies.
3. Future-proofing of compliance
Frequently following up with consumers over calls or emails can lead your agency to operate outside the latest CFPB rules and attract consumer attorney’s attention for violation(s) of Reg F.
A self-service platform such as IConnect247 that aligns with the latest rules and regulations of the ARM industry can help you communicate with consumers only after their consent and know what constitutes consumer privacy breach and harassment.
The primary goal of your omnichannel presence is to make follow-through easy and let the consumer choose their preferred channel of communication. Knowing and capturing consumer preferences can make sending personalized communication to consumers a cakewalk.
At Provana, we have built a plug-and-play omnichannel, self-service solution that collection agencies can customize, right down from writing their own disclaimers to choosing user interface colors that match their brand. If you are interested in engaging with consumers via web or mobile and want to reap all the benefits of the self-service model mentioned above, click here to schedule a demo.