Advances in Technology have drastically changed the world of credit and debt collections…
Take fax machines, for instance. At one point, customers sent purchase orders by mail. By the early to mid ‘80s, fax machines had become a regular fixture in most business offices. Fast forward to now and it’s EDI all the way.
Invoices these days are sent electronically and uploaded into a customers’ accounts payable system, bypassing the need for snail mail entirely. Deduction management software and decision support software can help creditors make better credit decisions faster than ever. And with the many methods a creditor company has to communicate with a past due customer, we’re at no loss for getting our message through. Take your pick: instant message, text reminders, fax, e-mail or automated dunning notices. We can ping away for all we’re worth to shake loose a payment of a past due bill and all with a click of a button. So, why don’t they pay?
Because they can click a button, too. It’s called, “delete”.
Advances in technology have catapulted us into a new kind of communication. And it’s a double- edged sword! On the one side we have the ease and gratification of instantaneous communication. But on the other is the lack of powerful one-on-one, human interaction. And THAT is precisely why the telephone still rules supreme in debt collections.
Given all the technological advances, using the telephone may seem a little ‘old fashioned.’ But the fact is, people respond to people; to voice, to tone and to the context of a situation. They respond best when the voice on the other end of the line is friendly and open to working through the problem. This is not to say that written correspondence isn’t a good thing. It IS and when sent to customers who stay on top of their accounts, it’s often completely effective. But for customers who are experiencing financial stress, nothing yields a response like a courteous but firm phone call where dialog and negotiation can take place, person to person.
The reality is, advances in technology will continue to change the way we communicate when pursuing a debt. Ironically, it’s possible that the very technology that seeks to bridge our communication gap may, in fact, create MORE distance between us. But in the end, one thing will always remain a constant: personal face-to-face or voice-to-voice interaction will always have the upper hand in debt collections to any machine generated communication. We’re human. We need the contact.
What do you think? How are advances in technology helping you collect on past due accounts?
You are correct C2C Resources, the phone rules when it comes to collections (especially of difficult or troubled accounts). I use the e-mail as an added tool again with phone calls to reiterate the call the client and I shared together as well as outline the details of the agreement or promised reached during our call.
Thanks for the comment, Christina! And we agree with your strategy here. It’s very helpful to both you and the person on the other end of the line to follow-up the conversation with an email. It’s a good way to add clarity to any set expectations.