Digital channel interaction has become a priority for most collection organizations, from outsourced collection firms to lenders. Engagement capabilities are expanding at a rapid pace in order to utilize new consumer communication options. The competition is getting tough by the day.
As traditional communication channels (such as telephone and letters) see a decline in effectiveness, digital channel communications (like consumer self-serve collection portals, live chat, email, and SMS) are experiencing a rise.
2020 CFPB (Consumer Financial Protection Bureau) Rulings
One of the main reasons behind the change is the 2020 CFPB (Consumer Financial Protection Bureau) rulings which laid the foundation for digital transformation. The rulings have had a huge impact on collection operations involving client communication. Thus, the way companies contact customers is no longer the same as there are strict regulations in place which cover just about everything. Collection organizations have anticipated the new ruling and it has affected collection operations considerably.
Omni-Channel Collections
Organizations that are putting in the effort to introduce digital channel capabilities need to look towards omni-channel collections. It will provide the ultimate collection system of the future. The truth is that an omni-channel enabled collection system would allow for improved collections performance and operational compliance in comparison to traditional collection systems which fail to provide a cohesive system for proper compliance and communication.
Now, it is vital to keep in mind that an omni-channel collection enabled system does not mean that you can simply grow your digital channel communication capabilities and utilize the collection software platform for getting 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 traditional and new. It would allow for the communication channel software to unleash the power of the systems.
The best thing about the omni-channel collection system is that it centrally sets, controls, and manages initial and ongoing communication and collection strategies across all contact channels. Therefore, the omni-channel collection system would offer the ability to process new and updated information instantly to allow for automatic triggers. The appropriate communication actions will be taken for systematically moving the account towards the next step in the workflow. Consequently, the final 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 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 which strictly adhere to the 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 omni-channel collections to allow for better consumer communication management. The agents would have access to everything and would know more about the collection communication strategy. The basis for message event triggers would be included to focus on contact workflow rules.
As for the communication consent data, it would include the number of contacts that have been attempted and the completion of each consumer. The data will consider all the communication channels for each consumer. Since such a granular level of data cannot be captured or properly 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 for supporting such capabilities.
Key Capabilities of Collections System
When it comes to collection systems, there are certain key capabilities that need to be offered for supporting omni-channel collections. These capabilities are mentioned below.
1. Seamless Integration
To establish an omni-channel collections system, the first thing that is needed is seamless integration. It is impossible to establish the system without seamless integration. Every communication channel and contact needs to be seamlessly integrated. This means that ring-less voicemail, live chat, SMS, email, agent desktop, letter generation, and telephony have to come together to allow the system to leverage their capabilities and provide a seamless experience to customers. It would guarantee that customers have no trouble getting the service that they require.
Seamless integration is crucial as the customers today expect to receive the same experience on every channel. To truly satisfy them, your goal needs to be to get all the communication channels and contacts together in a single database which can be accessed by agents. It would enable the agents to start the conversation with customers where it 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. With real-time processing, it is possible to utilize the integrated applications along with external service providers to solve customer issues in real-time. It would ensure that customers receive the service that they require without any delay. Every matter would be taken care of and customers would truly feel that their needs are addressed in the best way possible. The external service providers would also work together to allow for the exchange of key communication or/ and contact information.
The fact is that customers do not have time to spare and it is the responsibility of collection firms to make sure that their customers benefit from prompt action. Otherwise, they would have no trouble switching to a competitor. Real-time processing enables faster results to be provided to customer. This ensures that they will stick around. It is an essential of omni-channel collections. If companies want to keep customers hooked, they have to focus on providing real-time processing. It would deal with providing quick solutions so that customers do not have to wait around.
3. Embedded Digital Channel Communication Capabilities
Next, embedded digital channel communication capabilities are needed for omni-channel collections. The capabilities are required for the collection system database to operate. It would bring together tracking and reporting functions, messaging templates, rules engine, strategy, and collector desktop. The importance of embedded digital channel communication capabilities cannot be stressed enough. They allow for the organization to expand their abilities to get more done.
Customers will be beyond thrilled to know that the organization has a lot more to offer than just the basics. Thus, it will work in their favour. Through the implementation of 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 that business is able to 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 omni-channel collections system can be established. Since omni-channel collection is all about centralization, a robust centralized strategy engine is necessary. It would enable the organization to quickly respond to customer queries and gather all the desired information within seconds.
5. Integrated Consumer Self-Serve Collection Portal
Another component of omni-channel collections that you need is an integrated consumer self-serve collection portal. It will allow customers to find information that they are looking for on their own. It is perfect for a younger demographic as they prefer to search for answers on their own. 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 for finding 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. By providing a comprehensive self-serve collection portal, you get to make sure that your customers stick around. 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, the utilization of omni-channel collections for data capture, utilization, compilation, and management is necessary. It would analyze all communication channels and associated strategies. Then, it would conduct relevant steps and actions. It includes the systematic capturing of information from each and every communication channel and contact. Thus, the best results can be expected through the utilization of omni-channel collections.
7. Detailed Tracking and Reporting
Finally, detailed tracking and reporting is needed along with analytic capabilities. It needs to be focused on omni-channel communications. Only through comprehensive reporting and analysis is it possible to gather valuable insights, refine strategies, and identify upcoming trends.
Detailed tracking and reporting will provide answers to questions that 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 to be just what you need to establish omni-channel collections. It is crucial that you utilize the capabilities for taking your organization to the next level.
If you fail to set up a collection system with the abovementioned omni-channel capabilities, it is impossible to compete with your competition and stand out. An omni-channel system is impossible without the capabilities. They allow for seamless integration and embedded capabilities. You can utilize them for better collection operations and compliance. Since you should never compromise on performance, it is vital that you invest in a system that offers these capabilities. It can work to your advantage to have such capabilities.
On the other hand, if you do not offer such capabilities, your customers will leave unsatisfied. For instance, without real-time processing, the collection would not be able to trigger immediate action. If payments are made customers, they should be updated that the amount has been received through SMS. In case the capabilities are not offered, customers would feel confused as to whether the payment has been made or not. It would increase their frustration and they would be likely to consider an alternative.
Besides this, it would not be able to automatically pull the account from the collection queue immediately which would result in customers who have made payments still receiving a demand letter or a call from an agent. Similarly, if there is no self-serve collection portal, customers would struggle to make payments and they would need to stick to traditional means which would discourage them from using your service altogether.
If there is no seamless integration between the collection system and the portal as well as real-time processing and a centralized system that immediately reacts to customer action, it would lead to a series of missteps occurring as mentioned below.
·A demand letter would be sent to the customer that has already established payments through the serve-self collections portal. It would jeopardize your relationship with the customer.
· A collector would contact the customer despite the customer having made the payment. This would have an adverse effect on customer relationship.
The above examples only reveal that a failure to fully adopt an omni-channel collections system would waste time, expenses, and resources on collection actions that are not required. Thus, the strategies developed would have no real value. Moreover, customers would complain to the management and feel that the organization does not have their best interests at heart. Customers would be confused and would not know whether to believe the company or not.
What Do The Statistics Say About Omni-Channel 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 up your mind.
1. Omni-Channel Customers Spend More
One of the most important statistics that you should keep in mind according to the Harvard Business Review is that omni-channel customers spend about 10 percent more online and 4 percent more in-store in comparison to single-channel customers. Therefore, every additional channel would be able to generate more money for your business.
2. 9/10 Customers Want Omni-Channel
Another study conducted by UC Today showed that about 9 out of 10 customers prefer an omni-channel experience. In fact, customers demand a seamless service when communicating through different channels. It should be reason enough to prepare for omni-channel collections.
3. 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 experience no matter which channel they use. This means that companies cannot ditch consistently to save costs.
4. 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 places an emphasis on focusing your efforts on providing an incredible mobile experience to all your consumers.
5. Omnichannel Strategies Help Boost Customer Retention
Aspect Software mentions that companies that successfully adopt omni-channel strategies manage to benefit from 91 percent higher customer retention rates in comparison to companies that fail to follow suit. Hence, there is no reason to miss out on omni-channel adoption. Otherwise, it would end up affecting your retention rate.
6. Over 60 Percent of Americans Prefer to Solve Customer Service Issues Using a Self-Service Platform
Another notable omni-channel statistic that you should consider as reported by American Express is that over 60 percent of Americans tend to prefer solving all their basic customer issues using a self-service app or website. It is due to this reason that you should never take self-service platforms lightly and invest in creating a strong self-service platform that customers can turn to solve all their problems. It will help cut down administrative costs and improve your brand reputation. It does not get better than this.
7. 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 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 are likely to switch to a competitor or simply stop purchasing from you.
8. 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 mobile device to make purchases. This is why it makes sense to provide customers with the option to make purchases using a smart device and offer solutions.
Expert Advice
Once you have finished reading this post, you will come to realize that omni-channel collection is here to bring about a change. The statistics only confirm what customers want. Hence, you need to put in the effort to implement omni-channel collections. Otherwise, your business would be unable to keep up and you will lose a significant market share.