Strategies for collecting debt come in many shapes and sizes, depending on the situation. No one customer is the same as another — although some techniques are time-honored and effective.
One of those is collecting on early-stage delinquency. At MJR, we try and use techniques that bring closure to the debt as quickly as we possibly can. Catching this early can not only collect your money faster, but it can also possibly save a great customer relationship.
Why prioritize early recovery?
It used to be that most debt recovery was focused on longer-term debt that was overdue, more like 30 days or 60 days instead of one day to a week past due. It’s clear, though, that focusing on early intervention is more effective in the long run. You’ll not only recover more of the money that is owed to you, but it will also happen with more efficiency. It’s also a way to stem the tide of bad debt that you may have to deal with at some point from a specific consumer.
When developing an early collection plan, it’s first important to see what the credit history of the customer was like right at the beginning of their relationship with your business.
Communication early on with customers in debt is a plus for them. It’s not unreasonable to say that customers in general appreciate when a business contacts them first to give reminders or to try to offer solutions to debt recovery.
You also need to extend this communication to after the debt is settled, just to ensure that you understand their situation and were able to remedy things in favor of everyone involved.
What we do for early delinquency
As part of our work in 1st party collection services, MJR calls your customers as your organization. Our agents are fully trained in your processes and driving your own Key Performance Indicators (KPIs) to maximize cure and collection rates, while minimizing roll rates.
The focus is to reduce delinquencies in the early stages before services or credit privileges are impacted. We offer a wide variety of programs including live agent calling, IVR, SMS and email campaigns, and automated messaging.
Our priority is yours: to have a strong front-end strategy that can be of value to both your business goals and to the relationship you have fostered with your customers. For this service – or others that can help with debt recovery, go to our website for more details.
