Research conducted by Mckinsey into the customer experience of credit collection has helped clear things up for lenders who need to take action to achieve more effective collections. Fundamentally, customers have changed over recent years, and through this mentioned research, customers expressed that their choice and method on how they want to be contacted has changed dramatically.
Most (new) customers and perhaps even older customers prefer to be contacted and take action through digital channels because it’s more native to their everyday behaviour, and so this means that traditional contact methods might have to be reserved for other segment groups in order to keep customers happy, and loyal. Many companies in today’s climate will understand that their customers have diverse preferences and these have to be handled differently.
So what has made these changes?
- Covid-19 Has Changed A Lot For Everyone
Covid 19 has changed the world to say the least! It has been a tough experience for many, and that means that the normal has changed. Where people were happy to go meet their bank manager, now don’t feel safe doing it in real life. Customers have also realised that they can still manage their life digitally and it becomes easier. This means the new normal is very different from pre covid times.
- Generation Z (Gen Z) are Taking Action
The generation of TikTok, and the generation who demand instant gratification, and a completely digital experience are taking action in the real world. They are the generation who are now starting to work, pay bills and live outside of their smartphones. When it comes to them engaging with businesses, they are taking a different approach and companies have to adapt to it or lose them for good.
In order to adapt to our customers, we know how you need to Interact with your customers in order to remind them about their payment and assist with the actual payment collection. Engage.com personalizes, schedules and provides the best customer service while answering any questions the customer may have in any digital channel the customer wishes to use (Email, WhatsApp, website, SMS..). These channels are native to Generation Z, so it wont inconvenience them, and provide opportunity to create long term loyalty.
- IVR/Phone Fatigue
Interactive Voice Response (IVR) is a key feature for any support team as it automates calls that take up so much bandwidth for your company. You can automatically route a call to the right agent at the right time, but also have the ability to avoid live agents in many cases.
But there is an issue with a variety of factors coming up in the last year. Generation Z and Corona have made people want other easier digital options for their customer service needs. But this combined with phone fatigue, creates a challenge that can only be solved with digital transformation.
When the sensitive subject of debt, payments and collections comes up, many new and old customers prefer to deal with it digitally, without human interaction. There are many reasons, and that might be individual to customers, but one major factor is the ability to avoid embarrassment for not paying on time. Speaking via a whatsapp conversation or a Bot is familiar, easy and safe.
- Ease of Use So Why Not?
The simplicity of digital forms and processes makes it a no brainer for customers, especially if it means saving time and money. If you combine that with a sensitive issue, that doesn’t feel like they are being pestered for their debt, then they will more likely engage and deal with the issue, and ultimately pay.
- Enhancement in Digital Payments Capabilities
Technological advancements, and customer expectations have made collection requests much easier to handle, and a softer approach for customers to digest. But the real game changer, perhaps is the enhancement in digital payment capabilities. COVID-19 has fast-tracking alternative payments adoption and contactless solutions in order to keep everyone safe and infrastructure to facilitate digital wallets and other challenger payment options.
These can be integrated into your collection requests allowing users to streamline their processes and provide a holistic customer view, therefore improving the brand/customer relationship.
