Welcome back to the second edition from our brand-new blog series ‘6 Key Phases of Debt Collection’ where we’ve pulled together data from thousands of clients (and over 2 million live customer accounts) so you can measure how your timelines stack up against the 6 main phases in Collections:
- Setting up for Success
- Pre-Due Collections
- Due Date
- Early Collections
- Late Collections
- Late Late Collections
Short on time and want to read all 6 phases at your convenience? To download our Whitepaper
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Last week we started with, what we consider, a crucial part of the collections process;
Setting Up for Success when considering using a DCA and the
critical questions you should ask them to make sure they’re the correct fit for your company.
Through our data mining and direct conversations, we understand collections management and their teams are faced with many moving parts which makes their roles ever more difficult. Such as: the speed of changing technology, customer habits and then with the latest ‘curve-ball’ the global Coronavirus pandemic. We all know it’s never been more important to make sure what you are delivering is not only relevant but also appropriate.
In this week’s post, we discuss the first phase of the collections timelines process:
Pre-Due. We explain the average length of time, the approach and tone a collections teams should use and also give a sample of the actions we would take during this phase. We hope you enjoy…
Pre-Due
Our data shows us that the pre-due period is between the minus 3-day and day 0 of payment becoming due. During this time teams can either do nothing or be proactive and send a reminder to the customer about the upcoming payment.
Proactivity can catch any early issues and gives the Customer time to make any last-minute changes to their finances.
Tone and language are incredibly important if a notification is sent – it needs to be friendly and clearly presented as a reminder. The best way to do this is digitally and, if possible, we’ve found push notifications on our customer app have been an incredibly productive channel.
Want to know more about coeo?
Here’s our Tech & Services brochure
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The coeo Way
Here at coeo, an example of how we use these pre-due notifications would be to alert a customer if the card used for their payment arrangement is due to expire before the next instalment being attempted. This helps us to reduce arrangement default rates and encourages customers to contact us to update their details and to check their current circumstances haven’t changed since they last engaged with us.
Final words from coeo
Thank you for taking the time to read this blog post. If you’d to read through all of the 6 phases of the collections process in your own time then you can
download the Whitepaper here or if you’d like to find out more about our technology and services you can
download our brochure here.
