Are You Ready For Omnichannel Debt Collections?

Digital channel interaction has become a priority for most collection agencies, from outsourced collection firms to lenders. Engagement capabilities rapidly expand to utilize new consumer communication options to increase call support. The competition is getting tough by the day.

As traditional communication channels digital debt, (such as telephone and letters) see a decline in effectiveness, digital channel communications (like consumer self-serve digital debt collection portals, phone, live chat, email, and text messaging ) are experiencing a rise.

2020 CFPB (Consumer Financial Protection Bureau) Rulings on Debt Collection Industry

One of the main reasons behind the change is the 2020 CFPB (Consumer Financial Protection Bureau) rulings that laid the digital debt collection and transformation foundation. The rulings have significantly impacted digital debt collection methods and operations involving client communication. Thus, the way companies contact consumers is no longer the same as strict regulations covering almost everything. The collection industry has anticipated the new ruling, affecting collection operations considerably.

Digital Debt Collection

Organizations trying to introduce digital channel capabilities must look towards omni-channel collections. It will provide the ultimate collection system for digital transformation of the future. The truth is that an omnichannel-enabled collection system would allow for improved collections performance and operational efficiencies and compliance compared to traditional collection systems, which fail to provide a cohesive system for proper compliance and communication.

Remembering that an omnichannel collections-enabled system does not mean you can grow your digital communications channel communication capabilities and utilize the collection software platform to get work done. There is a lot more to the equation that needs to be considered. Instead, it is a collections system that seamlessly integrates both the more traditional channels and new. It would allow the communication channel software to unleash the power of the systems.

The best thing about the Omni channel collections process is that it centrally sets, control, and manage initial and ongoing communication and collection strategies across all contact channels. Therefore, the omnichannel collection system would offer the ability to instantly process new and updated information to allow for automatic triggers. The appropriate communication actions will be taken to systematically move the account toward the next step in the workflow. Consequently, the outcome would be more consistent. It would allow for appropriate engagement throughout every device and touch-point by the collection organization and the consumer.

Omni-channel-enabled collection predictive analytics systems are developed and developed to capture, store, compile, and use a broad set of data across every communication channel easily in real-time. It ensures more detailed data is utilized for improved actions. It is vital for complete consumer communication management. No element is missed out through the approach as all the collection communication channel strategies are optimized. Hence, more effective consumer messages are created that strictly adhere to compliance requirements. There would be no possibility of a violation occurring.

Consumer Communication Management

The consent data is captured and used in real-time through advanced analytics and omnichannel collections to better consumer communication management. The agents would have access to everything and know more about the collection communication strategy. The basis for message event triggers would be included to focus on contact preferences and workflow rules.

As for the communication consent, data would include the number of contacts uk consumers that have been attempted and the completion of each contact customers the consumer. The data will consider all the communication channels for each consumer. Since such a granular level of data cannot be captured or correctly leveraged by most collection systems, it is crucial to invest in omni-channel collections. The reason behind existing collection systems failing is that these systems had not been designed or developed to support such capabilities.

Key Capabilities of Digital Collections System

Certain key capabilities need to be offered regarding collection systems to support omnichannel collections. These capabilities are mentioned below.

1. Seamless Integration

To establish an omnichannel collections system, the first thing that is needed is seamless integration. It is impossible to establish the system without seamless integration. Every channel of communication and contact needs to be seamlessly integrated. This means that all phone calls, ring-less voicemail, live chat, SMS, email, agent desktop, letter generation, and telephony must come together to allow the system to leverage its capabilities and provide a seamless experience for consumers. It would guarantee that customers have no trouble getting the required service.

Seamless integration engagement is crucial for consumers. Today expect to receive the same customer experience on every channel. To satisfy them, your goal must be to get all the channel communications text messages and contacts together in a single database that agents can access. It would enable the agents to start communications with customers where they had last left off.

2. Real-Time Processing

Next, real-time processing is something that cannot be overlooked. It is an integral part of omni-channel collections software. With real-time processing, it is possible to utilize integrated applications and external service providers to solve customer issues in real-time. It would ensure that customers receive the required service without any delay. Every matter would be handled, and customers would genuinely feel that their needs are addressed in the best way possible. The external service providers would also work together to exchange key communication channels or/ and contact information.

The fact is that consumers do not have time or financial stress to spare, and it is the responsibility of debt collection agencies and firms to make sure that their consumers benefit from prompt action. Otherwise, they would have no trouble not interacting with the business or paying with their credit card. Real-time processing enables faster results to be provided to the customer. This ensures that they will stick around. It is essential for omnichannel digital debt collections too. Companies must focus on providing real-time processing to keep customers hooked. It would provide quick solutions, so customers do not have to wait around.

3. Embedded Digital Channel Communication Capabilities

Next, embedded digital channel communications capabilities are needed for omni-channel collections. The capabilities are required for the collection system database to operate. It would combine tracking and reporting functions, messaging templates, a rules engine, strategy, and a collector desktop. The importance of embedded digital channel communication capabilities cannot be stressed enough. They allow the organization to expand its abilities to get more done.

Customers will be thrilled to know that the organization offers more advanced analytics solutions than just the basics. Thus, it will work in their favor. Through the implementation of the solutions and the capabilities, better results can be expected.

4. Robust Centralized Strategy Engine

To eliminate data silos, a robust centralized strategy engine is needed. It will help bring everything together and ensure the business can better cater to customers. The centralized strategy engine will be powered by machine learning and artificial intelligence. It will provide the ultimate platform to the business to allow it to get more done. With such a platform, the omnichannel collections system can be established.

Since the omnichannel collection is all about centralization, a robust centralized strategy engine is necessary. It would enable the organization to respond quickly to customer queries and gather all the desired information within seconds.

5. Integrated Consumer Self-Serve Collection Portal

Another component of omnichannel collections you need is an integrated consumer self-serve collection portal. It will allow customers to find the information they are looking for independently. It is perfect for a younger demographic who prefers to search for answers independently. Besides, a self-serve collection portal will help reduce costs as customers would not need to contact the customer support team. Instead, they would directly use the portal to find the solution to their problems.

An integrated consumer self-serve collection portal needs to be rich in information. It should cover all the basics that customers are likely to search for. You must ensure your customers stick around by providing a comprehensive self-serve collection portal. It would provide all your customers with much-needed information. It makes sense to establish the portal, as a failure to do so could prove costly.

6. Utilization of Omni-Channel Collections

Next, utilizing an omnichannel contact center solution for data capture, utilization, compilation, and management is necessary. It would analyze all communication channels and associated contact strategies.

Then, it would conduct appropriate steps and actions. It includes the systematic capturing of information from every communication channel and contact. Thus, the best results can be expected by utilizing omni-channel collections.

7. Detailed Tracking and Reporting

Finally, detailed tracking and reporting tools are needed, along with analytic capabilities. It needs to be focused on omni-channel communications. We can only gather valuable insights, refine strategies, and identify upcoming trends through comprehensive reporting tools, and analysis tools.

Detailed tracking, analytics and reporting will answer questions you might not even think were answerable. It would show you trends and look at things from a micro level. It pays to get into detail. You will find the component of your analytics to be just what you need to establish omnichannel collections. You must utilize the analytics capabilities to take your organization to the next level.

If you fail to set up a debt collection system with the abovementioned omni-channel capabilities, it is impossible to compete with your competition and stand out. An omni-channel digital debt collections system is impossible without the capabilities. They allow for seamless integration and embedded capabilities. You can utilize them for better debt collection operations and compliance. Since you should never compromise on performance, you must invest in a debt collection system that offers these services. It can work to your advantage to have such capabilities.

On the other hand, if you do not offer such capabilities, your customer engagement will leave you unsatisfied. For instance, the collection could not trigger immediate action without real-time processing services. If payments are made to the accounts of customers, they should be updated that the amount has been received through SMS. If the capabilities are not offered, customers will feel confused about whether the payment has been made. It would increase the risk of their frustration, and they would likely consider an alternative.

Besides this, it would not automatically pull the account from the collection queue immediately, resulting in customers who have made payments still receiving a demand letter or a call from an agent. Similarly, customers would struggle to make payments without a self-serve collection portal. They would need to stick to their accounts through traditional means, or risk discouraging them from using your service altogether.

Suppose there is no seamless integration between the collection system and the portal, real-time processing, and a centralized system that immediately reacts to customer action. In that case, it will lead to a series of missteps occurring, as mentioned below.

A demand letter would be sent to the customer with already established payments through the serve-self collections portal. It would jeopardize your relationship with the customer.

A collector would contact the customer, although the customer has paid. This would hurt customer relationships.

The above examples only reveal that a failure to adopt an omnichannel collections system entirely would waste time, expenses, and resources on collection actions that are not required. Thus, the strategies that collections departments developed would have no real value. Moreover, customers would complain to the management and collections teams and feel that the organization does not have their best interests at heart. Customers would be confused and not know whether to believe the company.

What Do The Statistics Say About Omnichannel Collections?

To help you get a better idea about just how important it is to opt for omni-channel collections, the following statistics will help open your mind.

Omni-Channel Customers Spend More

According to the Harvard Business Review, one of the most important statistics you should remember is that omnichannel customers spend about 10 percent more online and 4 percent more in-store than single-channel customers. Therefore, every additional customer preferences your channel could generate more money for your business.

9/10 Customers Want Omni-Channel

Another study conducted by UC Today showed that about 9 out of 10, customers prefer an omnichannel experience. Customers demand a seamless service when communicating through different digital channels. It should be reason enough to prepare for omni-channel collections.

3/4 of Customers Demand a Consistent Experience

Gladly reported that about 3/4 of customers, or 71 percent to be precise, want a consistent customer experience no matter their channel. This means that companies cannot ditch consistently to save costs lower risk customers.

Only 22 Percent of Customers Have a Good Mobile Experience

Tem Kin Group suggests that about 60 percent of organizations believe that they have done a great job when it comes to providing customers with a good mobile experience. However, only 22 percent of the customers agree. This emphasizes focusing your efforts on providing more customers an incredible mobile experience to the customer satisfaction for all your consumers.

Omnichannel Strategies Help Boost Customer Retention

Aspect Software mentions that companies that successfully adopt omnichannel strategies benefit from 91 percent higher consumer retention rates than companies that fail to follow suit. Hence, there is no reason to miss out on omnichannel adoption. Otherwise, it would end up affecting your retention rate.

Over 60 Percent of Americans Prefer to Solve Customer Engagement Issues Using a Debt Collections Services Platform

Another notable omni-channel statistic you should consider, as reported by American Express, is that over 60 percent of Americans prefer solving all their fundamental customer issues using a self-service app or website. Due to this reason, you should never take self-service platforms lightly and invest in creating robust self-services that customers can turn to solve all their problems. It will help cut down administrative and operational costs and improve your brand reputation. It does not get better than this.

About 73 Percent of Customers Shop Using More Than Just One Channel

The Harvard Business Review has found that about 73 percent of customers want to shop using more digital channels than just one channel. Customers Today want flexibility when it comes to shopping and handling issues. If your organization does not provide them that flexibility, they will likely not pay or interact with you.

Close to 80 Percent of Customers Made a Purchase via a Mobile Device

Outer Box Design reported that about 80 percent of customers use a phone device to make digital purchases. This is why offering customers the option to purchase digital from using a smart device and offer them digital only solutions makes sense.

Once you have finished reading this post, you will realize that the omnichannel collection is here to bring about a change. The statistics only confirm what customers want. Hence, it would help if you put in the effort to implement omni channel collections platform. Otherwise, your business will be unable to keep up, and you will lose significant revenue.

Read more about what Jeffery Hartman in his interview with

“An in Debt Discussion” with Jacqueline H. Waller, founder of NOLA, had to say about implicating omnichannel in debt collections