5 Activities Will Increase your Chances to Collect Debt Recovery

The coronavirus pandemic has affected just about every business and government institution. It has resulted in cash flow and budgetary challenges. This is why it is crucial to recover debts effectively. Here at Nola Automation, we share the top 5 activities that will help boost your chances of debt recovery.

1. Obtain Accurate Data

One of the first things that you need to do is obtain accurate data about your debtors. Only when you have accurate and reliable data would you make effective decisions to allow for debt recovery. Besides, the data would supplement debt collection processes. When you ensure that the address, contact details, and financial status of customers are accurate, it will help cut down administrative costs. Besides, customers would be more satisfied with the service. It would be best to utilize the latest debt collection software to ensure that you have the tools needed to get the job done. 

2. Leverage AI (Artificial Intelligence) and ML (Machine Learning)

Next, you need to turn to AI and ML. Let them work in your favor to increase the recovery of debt. The future of debt recovery will focus on the use of AI and ML. Since traditional debt collection strategies are time-consuming and outright ineffective, you must use the software in place that leverages AI and ML.

3. Offer a Solution

Another activity that will increase your chances of recovery debt is offering a solution. Instead of wasting the time of excessive communication, it is a lot more prudent to approach clients with a solution such as a payment plan that suits their situation. A mutually agreed-upon payment schedule will work wonders. It will allow all the data relating to the customer to be used. A single view of the debt would ensure accurate reporting and the adoption of a holistic approach.

4. Be Compliant

The importance of compliance cannot be stressed enough. The coronavirus pandemic has only increased regulatory demands. This is why businesses have to remain compliant if they want to stay competitive. For instance, the Breathing Space Regulations provide people with more excellent legal protection from creditors. It is due to this reason that you need proper debt collection and debt recovery software. It will automate the debt recovery process to meet the regulatory and legislative requirements.

5. Adopt an Omnichannel Method

Finally, you need to communicate through an omnichannel method. When it comes to pursuing debt, the omnichannel strategy is easily the best option. It offers a digital approach that allows for the use of convenient channels to communicate with debtors. AI Interactive IVR, Live Chat, SMS, Email, Video Chat, Ringless Voice, and other channels will be automated to boost customer satisfaction and reduce reliance on time-consuming tasks.    

Conclusion

Once you have finished reading this post, you will know about the top activities that will boost your chances of debt recovery. It is about time that you improved your approach. Hence, it makes sense to follow our advice. 

BONUS TIPS!

Top 5 Tips for Pro-Active Debt Collection

The coronavirus pandemic has affected every sector. This is why it is crucial to adopt a proactive approach to ensure debt collection. The thing about being pro-active is that it requires you to create or control the situation instead of just reacting to it. Our top 5 tips for pro-active collect debt recovery will help ensure that your organization successfully navigates through these gruesome times.

1. Timing

One of the first tips that you need to consider is timing. According to Princeton psychologists, it was found that it only takes about a tenth of a second to get an impression of others. This means that the first seconds of the telephone call makes all the difference. Previous correspondence and vital information should be accessed by agents using debt collection software beforehand to view the debtor’s circumstances. This would help improve client relationships and improve the outcome.

2. Become Adaptable

The only way to stay ahead is by becoming adaptable. When you focus on becoming adaptable, you have an easier time utilizing the debt collection software to modify your Strategy for different customers, debt types, geographical locations, and cases. This only helps improve your collection performance.

3. Contact Strategy

A strong contact strategy is necessary for effective debt collection processes. In the past, agents have mostly relied on telephone calls, posted letters, sent text messages, and relied on emails. However, it is important to revamp the contact strategy for an omnichannel approach. A more digital approach is necessary for success. You should leverage social media and mobile apps to reduce labor-intensive tasks and reap the rewards of automation.

4. Single View of Debt

A single view of the debt portal will allow your organization to get a holistic view of each customer’s total amount of debt. Such an approach allows the organization to see the bigger picture. In fact, it can serve as a starting block to help you manage individual arrears. You can use it for making evidence-based decisions, transforming performance, and ensuring customer satisfaction.

5. Risk Detection and Forecasting

Finally, to be fully proactive, you cannot overlook risk detection and forecasting. Technology has come a long way. This is why you must unleash the power of AI (Artificial Intelligence) and ML (Machine Learning) for a truly proactive approach. With a customized machine learning prediction solution, you can expect to provide the organization with indicators that help identify risk early on to take the right actions for minimizing such risk. The tool would empower agents to stay ahead of payments and outperform competitors. Expect better decision-making by leveraging machine learning.