As a business you will know that nothing impacts your bottom line as dramatically as customer retention – but so do strategic and professional debt collections.
So how do these two affect each other and why is this so important? Well, what happens if your long-time customers default on payments and you don’t resolve overdue accounts effectively? Having the right debt collection experience does more for your bottom line than simply recovering unpaid debts. TRAQ software works symbiotically with your customer retention strategy so that you are able to extend your customer lifetime value. How does this work? Let’s explain.
Effective debt collection can actually improve customer loyalty.
When customers fall behind on payments one often tends to expect that their relationship with your business and brand could be hindered or even completely lost, but this doesn’t have to be the case; that is, if you have a customer-centric, empathic collections process in place. TRAQ’s Intelligent Decision Tree feature allows you to implement custom communication so that each customer interaction is handled with the appropriate level of empathy and support, thereby enhancing your customer loyalty.
TRAQ software also helps in this way by automating key tasks and workflows while providing valuable insights. Your business’ collections process can be reframed from a damaging experience that negatively impacts customer relationships to a positive one characterised by ease, support, and flexibility.
Building trust through a positive collections experience.
Customer interactions present an opportunity to strengthen your relationship with that customer – including collections. Instead of leaving customers feeling punished or ashamed, collections can enhance loyalty through a positive collections experience. By taking advantage of TRAQ’s Intelligent Analytics, your business is able to gain valuable insights into your customer behaviour. This allows you to have a more personalised and effective collections strategy that builds trust and improves your customer relationships.
Improving customer relationships with Sentiment Analysis.
When using TRAQ software’s features such as sentiment analysis and tracking customer communication, for example, debt collections can actually improve your business’ perception. You can achieve this by extending the same level of care, empathy and support during the resolution process as you would when consumers are purchasing your products; a highly beneficial methodology for the B2C sector.
By using TRAQ, your customers know that they are trusting you with both the relationship they have with you, and their overdue accounts. A poor debt recovery experience can easily cause hostility with consumers – therefore it is crucial that your collections process meets the same standards as you have in place for customer satisfaction and experience. TRAQ’s Centralised Dashboard provides a single view of all debtor information so that your team are equipped to handle collections with a personal touch, reinforcing trust and leading to better collection outcomes.
Creating a collections experience that improves customer retention.
Step into your customers’ shoes and ask yourself: “How would I want to be treated by my brand if I fell behind on payments?” This will help you define the best collection journey – this will also help you strategise a better process in your debt recovery to create a seamless customer experience. By using an empathetic approach to meet consumers where they are at, you reduce customer churn and ultimately achieve higher collection rates. Sounds wonderful, doesn’t it?
Today’s forward-thinking companies are using TRAQ’s advanced data analytics and Intelligent Decision Trees to identify different groups of customers; so they can then interact with those customers in their preferred way to shape seamless customer journeys. That is how they increase both their collection rates and their customers’ loyalty as well. TRAQ’s Omnichannel Communication capabilities establish a consistent and seamless omnichannel experience so that customers can engage through their preferred channels. This provides a consistent and convenient experience that cultivates positive relationships – even during the collections process.
Omnichannel communication for better customer engagement.
It’s no secret that Omnichannel Communication provides a consistent experience for your customers across all communication touchpoints. This allows you to communicate effectively and reach your customers on their preferred channels. It’s very important to meet consumers where they are and provide them with the necessary information to effectively address their situation uniquely.
What this does is provide a convenient option for customers where they feel most comfortable, feel understood and supported at their current situation and more likely to pay. TRAQ’s Integrated Payment Solutions allow your customers flexible payment options such as Debi-Check, Online EFT, and card payments. This allows them to choose the method that best suits their personal financial situation, thereby reducing customer decrease.
The importance of flexibility in debt collection software.
You need to empower customers with flexible payment options such as weekly payment plans or full payment, that allows them to choose the repayment method that best suits their individual financial situation. Each human being is different – and each case is unique. TRAQ’s comprehensive software solution gives you an approach that effectively allows you to address this challenge, by providing flexible payment options and prioritising customer needs.
The foundation of successful collections lies in trust. Customers trust you to handle their information responsibly and treat them with respect. This trust must extend to your revenue recovery. When you prioritise a positive customer outcome, collections can become a seamless, and even beneficial part of the customer journey. Collections can be an opportunity to demonstrate care and reinforce the customer relationship – leading to better collections success.