Whether you’re a sales rookie or an experienced debt collector, it’s hard to deny the debt collection process continues to dramatically change as technology advances our ability to know more about individual debtors. Prospects need to be increasingly contacted with personalized, engaging communications when reaching them with reminders about the due payment — a “one size fits all” approach rarely works now!
These high consumer interaction needs can create an overwhelming task for debt collectors, who must now track debtors in much more detail than ever before. On the flip side, new technology and a more personalized debt collection process are also exciting for debt collectors, who now have more data to tailor their approach to specific people, thereby increasing the debt collected!
In this post, we’ll discuss the Top 5 Ways to take advantage of an ever-changing, data-driven climate, and be better at your debt collection job.
1. Follow up EVERY time
Mastering the follow-up strategy is critical to success in debt collection, but many in the field are not following up enough.
Additionally, many debt collectors are hesitant to be persistent as they do not want to come off as the stereotypical “pushy debt collector.”
What most don’t realize, however, is the most common reason why a debtor won’t get to communicate with you is that they are busy — not aware who is approaching and why.
Harvard Business Review reports that professionals have an average of over 200 emails in their Inboxes at any time. The best way to cut through a crowded inbox is through multiple follow-ups.
2. Reach out across Multiple Touchpoints
Have you ever emailed a debtor to follow up, only to find out they prefer to do most of their debt-related communication on email?
On the flip side, How many times have you only called a debtor to follow up, later finding out they only answer scheduled calls?
Sticking to one form of communication in your debt collection follow-ups often limits the success that you will see with your debtor list. By reaching out across multiple communication channels, you will not only increase your chances of reaching a debtor on their preferred line of communication, but you will also inevitably stay top of mind by showing up in various places throughout their day.
3. Segment your Collection list
In the same vein as understanding that your prospects’ communication styles will differ, it is important to understand (and adapt) to the fact that there are countless ways in which each lead you receive in your debtor list, will be unique.
Segmenting your debtor into groups with similar characteristics will allow for tailored, personalized communications with your leads without having to write a completely different follow-up for each and every person!
Lead segmentation can be done in an infinite number of ways, most effectively by grouping them by lead status. Using these segments to tailor your communications helps you close more sales while lowering customer acquisition costs, as well.
An automated system like FlowUp can help you seamlessly integrate these leads into your segmented groups.
4. Tailor your Communications
So, you’ve segmented your debtor’s list into relevant categories. Now what?
Debtors are actively responsive to tailored communications and increased value throughout the collection process. One-sided hardcore collection efforts simply don’t work anymore, so you must strategically engage with prospects to be sure your communication process is a two-sided conversation.
The best way to ensure you are personalizing your communications with prospects is to develop a unified system to keep notes on prospect pain points and significant aspects of their lifestyle and spending. Remembering these details not only makes your prospect feel that you are listening to them but allows you to tailor your collection strategy to their specific payment patterns.
5. Reach out at the right time
Many collection agents fear that multiple follow-ups will distance prospects from their communication and later on from product or service.
In fact, as we learned, various follow-ups are key to closing collection deals!
What can actually hinder your debt collection process is reaching out at the wrong times and annoying your prospects. Follow-ups sent at inconvenient times often get overlooked, and spacing them too closely together can be overwhelming.
Patience, in addition, to properly scheduled, consistent communication, is key! Pay attention to your prospects’ needs and schedule and stick to your strategy and watch the collected amount flow in!
When connecting to a large number of debtors, these processes can easily become overwhelming with follow-up communications falling through the cracks — without the proper resources in place.
All-in-one automated lead follow-up and customer engagement platforms like FlowUp enable you to shift your focus to other important aspects of your job without losing out on due amounts and future customer transactions
FlowUp is follow-up automation and leads engagement platform that helps eliminate the lengthy spreadsheets and manual CRM entries from your day. The platform allows you to automate your follow-ups across multiple communication channels including voice, text, and email.
Schedule follow-ups at the right time by reaching out during peak times in other time zones and automating your follow-up timelines.
Want to learn more? Request a demo today!.