Digital strategies are revolutionizing collections performance today. Using mobile banking as a channel for collections makes customers feel like the communication is personal, and gives them choices over their payment terms.
The results don’t lie: As noted by Telrock CEO Russell Robinson in a presentation we gave at FICO World 2011 last month, 77% of customers who commit to mobile collections payments make them within two days, and 40% pay within the first 30 minutes. Mobile increases auto-pay for collections too, and customer center calls are way down when mobile collections are used.
The benefits of these new mobile best practices go beyond just higher response rates. They can also reduce customer calls – and consequently, fewer staffers are needed to make calls. They can also improve the customer experience, and decrease the customer “embarrassment” factor involved with having to talk to people about collections, as I noted in a previous post.
Mobile technology offers tremendous potential when it comes to collections and recovery. No wonder so many people attended our presentation at FICO World.