NEWS...
Lenders 'Need to Engage' with Debtors
With more and more consumers beginning to feel the pinch of the dreaded 'credit crunch', it's likely to see an increase in those struggling to repay their debts. As a result, it's also more likely that collection teams are beginning to feel the pressure.
This is why it is vital for all lenders to engage with their debtors at every stage of the process. By entering into a dialogue with them and offering them the support and guidance they need to effectively manage their finances, they will be better placed to begin paying back what they owe.
In addition, consumers respond well to being treated - or feeling like they are being treated - like an individual, rather than just a 'number'.
Therefore, by adapting to each customer and employing a variety of communication techniques, collectors have the ability to improve the response of their debtors. However, it is also vital that care is taken at each stage.
The most important stage in the process is the 'pre-delinquency' phase. At this point, collectors can engage with debtors on their terms. This can yield great results, by nurturing a non-intrusive and supportive relationship.
Once a consumer is missing payments, a good, structured communications plan can pay dividends. SMS and email messaging can help support this, and attempting to breathe life into the communication channels before the problem escalates out of control.
If a customer is still working hard to avoid any and all communications, it becomes even more important to get a response from them - by any means at your disposal.
Capturing data on a customer who's looking at self-help pages on your website might seem like a futuristic dream, but similar tools are used in the marketing world, so why shouldn't they be used to help collectors work with debtors to help pay off their debts.
Original article, by Steve Denby, courtesy of CCR. For further information visit www.ccrmagazine.co.uk
