The old adage “you catch more flies with honey than vinegar” seems to ring true for recovery rates. New interest in the consumer experience has led the way for a variety of studies that indicate positivity in consumer interactions can have a significant impact on the life of their accounts, and their propensity to pay in full. Aside from expressing courtesy and respect, empathy has been cited as a key to consumer satisfaction rates in collections, with some sources indicating it has the ability to nearly double recovery rates. In this post, we are going to identify three of the ways to extend empathy to consumers to create a superior experience that will lead to better financial outcomes.
- Adopt a consumer-centric philosophy
One way to extend empathy to consumers is by ingraining it into your core values by adopting a consumer-centric philosophy. Years ago we created our New Deal philosophy; this emphasizes empathy through the assumption that consumers want to pay their bills but sometimes circumstances arise that make it difficult. Approaching consumers with this assumption takes the negativity out of interactions and creates a team mentality; instead of being aggressive, demanding, or shaming consumers about failing to meet their financial obligations, our agents act as advocates for what is best for their financial circumstances without judgment. This “work together” approach minimizes the stress of managing their account and creates a pleasant environment for negotiation and resolution.
- Make room for consumers’ preferences
Empathy can be demonstrated by acknowledging that each consumer is an individual with their own unique circumstances and preferences. Making accommodations for the diverse needs of your consumers can not only help create a superior experience but also improve engagement. Providing an online portal that empowers consumers to give attention to their accounts when it’s most convenient for them illustrates that you recognize that not everyone shares your office hours, or wishes to engage directly with an agent in order to take action on their account. Additionally, providing consumers the opportunity to choose how they are engaged can show you their preferences while making communication efforts more effective. At Professional Credit, we offer consumers the choice of selecting phone, email, or even text messaging as their primary method for contact. We also accept various methods for payment, from ACH to Western Union, to ensure we can accommodate every consumer’s needs.
- Offer payment plans
Offering a payment plan is one of the biggest ways you can extend empathy to a consumer. When times are tough, payment plans can be a light in the dark, allowing consumers the time needed to get back on track while not completely abandoning their account. Payment plans can take much of the pressure off and show consumers that your organization cares about what’s best for their financial circumstances, not just what results in the fastest resolution. In regard to the consumer experience, just the act of developing a payment plan can be relationship-building and mutually beneficial — payment plans can actually boost resolution rates.