Harnessing the power of the human touch for effective credit control

In the current age of digitalization, consumers expect to communicate with your business using the channel of their choice. They want to connect with you, the way they want to connect with you, and when they want to connect with you.

Consequentially more and more businesses are been forced to adopt omnichannel strategies for any areas of the business which are customer facing. The simplicity of managing the customer service help line, the odd letter of complaint and the customer service inbox, has been replaced with an ever-evolving mix of chat rooms, social media forums, text and a deluge of email conversations all of which require managing to completion.

In this dash to embrace modernity, and spearhead these new channels, the phone and the power of a human conversation, is often overlooked. It is remarkable how hard it is to find a customer service phone number on many websites, or how silent many businesses divisions which are customer facing have become.

Despite the emergence and stabilization of new channels the phone remains the most used (48%) and preferred (80%) method for communicating with a business.

The customer facing functions of credit control and debt collection have been quick to embrace an omnichannel approach to their customer contact – utilising a mix of emails, letters, SMS and voice to chase outstanding invoices and collect what is due. However, despite the wealth of options available, it is without doubt that voice contact remains the most powerful communication channels in the collection agent’s arsenal – so why is voice contact still so powerful when it comes to collecting your cash?

1. Engagement

Unlike an email or letter, a phone call, when it gets through to the right party, is impossible to ignore. The customer has to enter into a discussion, whether they have a dispute or are willing and able to pay, the dialogue is has been opened and the collector is in a position to move them through to a resolution.

2. The personal touch

In a world of efficiency and compliance, a letter, email, SMS or even chatroom will usually follow a boilerplate template with no nuance for individual circumstances. However, voice calls have an infinite capacity for personalisation, which is why they remain so effective which it comes to delivering effective credit control and debt collection. The collector can build rapport, develop an understanding of the customer’s circumstances and then guide them towards the appropriate resolution. No other channel has such an ability to build a relationship with the customer and to leverage this to not only to secure payment but to build customer loyalty for the business.

3. Speed of resolution

It is well known that people can talk quicker than they can type, but if you also consider the far greater potential for misunderstanding through the written word than spoken, and it is easy to understand how overdue accounts can often be resolved in one phone call. In a five minute conversation a collection agent can highlight the overdue invoices, identify and resolve any disputes and take immediate payment.

4. Accuracy of Information

Another reason why voice is still a critical channel for effective credit control is the ability to communicate accurate information over this channel. All details can be thoroughly discussed ensuring the customer has a clear understanding of the status of their account and their options. Any misunderstandings can be identified and resolved avoiding further confusion and potential payment delays.

Conclusion

With these point in mind, it is therefore not surprising that voice remains a critical communication channel when it comes to delivering effective credit control and debt collection. With the growing understanding that modern day market share will be won as much by delivering market leading customer experience as on innovation, these are facts businesses will ignore at their cost. It is absolutely critical that brands provide the best quality of customer service to their customers – even when chasing outstanding invoices. Picking up the phone and talking to your customers is not only the action most likely to collect your cash – it is also another step towards strengthening you customer relationships – building loyalty and advocacy.

If you have outstanding debts,, contact our team of specialist advisors at sales@4dcontact.com for a no-win no fee quote.

Mark Smith: Director at 4D Contact & Barratt Smith Brown

Interested in receiving more news and views from 4D Contact?

Subscribe to our weekly newsletter

[TOFU offer] eBook – A C-Suite executive’s guide to Delivering successful order-to-cash transformation
Download our eBook

A C-Suite executive’s guide to Delivering successful order-to-cash transformation

A review of the considerations and tactics critical to achieving successful transformation within your order-to-cash function

Download

You may be interested in these other recent articles

Three key factors for optimising cash collection

18 August 2022

Effective credit management is when the three key factors critical for optimising cash collection – systems - processes and people – are delivered successfully.

Read more

How to maintain cash flow in an economic downturn

7 July 2022

With high-level inflation, low-level growth, and no short-term resolution to the Russia - Ukraine crisis apparent, economic uncertainty is increasing. There are now serious concerns…

Read more

Volatility in the Global Economy: The True Cost of Covid and Conflict

23 June 2022

An overview of what is driving the current volatility in the global economy and what policy makers can and will do to stabilize it.

Read more

How Credit-Control can Improve Customer Relationships

25 May 2022

Outlined in this article are 3 ways customer-centric credit-control that can improve your customer experience, securing customer loyalty and your cash flow.

Read more

European Credit Management Industry Trends for 2022

12 May 2022

European credit management teams will be hoping for an ease from the pressures of maintaining cash flow during the pandemic. However, with the economic outlook…

Read more
[TOFU offer] eBook – A C-Suite executive’s guide to Delivering successful order-to-cash transformation

Download our eBook

A C-Suite executive’s guide to Delivering successful order-to-cash transformation

A review of the considerations and tactics critical to achieving successful transformation within your order-to-cash function

Download

Book a consultation

Discover the benefits your business could achieve with a bespoke, outsourced contact solution.

Our brief consultations are designed to outline the impact your organisation could achieve, whatever your starting point and unique requirements.







    Register to receive updates

    Enter your email to receive regular news and updates.


      Our contact details

      4D Contact: London

      Barratt Smith Brown & 4D Contact
      Bentinck House
      3-8 Bolsover Street
      London
      W1W 6AB

      4D Contact: Malaga

      Four D Contact S.L.
      Camino de las Cañadas 1D
      Centro de Negocios Martín Buendía
      Planta 1ª, Oficina 17
      29651 Mijas Costa
      Málaga, Spain

      4D Contact: Dublin

      The Black Church
      St Mary’s Place
      Dublin
      D07 P4AX

      Global Sales Enquiries:

      © 2022 4D Contact. All rights reserved  |  Privacy
      Registered in Ireland, number 626576  |   Website by Jeremy Hickman