How can businesses protect their brand reputation amidst the powder keg of anxiety and emotions that comes with bad debt? It’s a question that worries some brand owners.
Coming from a finance background, Dee Sherring understands the urgent need by businesses to recoup debts yet still retain those customers. As Executive Sales Manager at Cloud Payment Group, it’s her job to advise clients on the best way to manage outstanding accounts whilst not damaging their brand.
“Clients are always very concerned about their brand and potential damage to their reputation when they engage the services of a debt collector.
Whilst it’s a fine balancing act, there are a number of ways that businesses can protect their brand, and the first one is finding the right collections partner who understands the need for proactive customer relationships.”
Changing attitudes to debt collection
Rightly or wrongly, the debt collection industry has a bit of a bad rap. It can also be incredibly stressful and triggering for someone to receive a call from a debt collector, especially if they are already feeling overwhelmed by debts.
Dee says that many collection agencies have embraced a changed approach during recent years.
There are so many resources available to help people when dealing with debt collectors – but I’d like to think that the relationship debt collectors have with customers has changed. Our clients are increasingly aware of the impact bad collection practices can have on their brand reputation, and the industry itself has a more mature approach in terms of bridging the gap between creditor and debtor.
So, can debt collectors ever be seen as allies in the war on personal debt?
Dee says they can, and that many are taking positive steps in that direction.
“Collection agencies who embrace technology to create a better debtor experience are helping to make a real change to not only the industries reputation, but client outcomes. Using innovative technology such as Cloud Payment Groups’ Payment Hubb (URL LINK), which allows for self-management of payment plans and real time access to debt details, are giving back a sense of control to the consumer.
In many aspects our role is to act as a consumer advocate, working with someone to find a solution that works for both the debtor, and the company they owe money to.
“Wanting people to not feel intimidated and ask collections agents for help in understanding outstanding debt balances and payment options is something the industry should encourage”, Dee adds.
“People struggling with debt deserve dignity and respect. We found that giving people the ability to oversee and manage their debt through use of technology such as the Payment Hubb software, delivers a measure of control and through that, dignity as they get back on track. Ultimately it also results in great outcomes for the creditor.”
Protecting your brand during the debt collection period
One of the biggest challenges for businesses right now is dealing with debtors and outstanding accounts whilst not damaging their brand. Dee explains the best way to manage the risk,
Our customers are always very concerned about their brand when engaging the services of a debt collector. As a first step, I recommend looking for an agency that has a good reputation and conducts their collections in line with your company policy. Some debt collection companies like Cloud Payment Group are able to customise the collections approach, which allows for input by the customer to ensure all interactions reflect their brand and internal values.
Making sure that a collection agency has the best possible technology in place that can handle large volumes is also essential. When handling big debt volumes its inevitable that standards can sometimes slip.
“Having access to an automated system that includes the ability for their debtors to self-service and oversee payment plans has been a game changer for many businesses. When its simple to get hold of important information, update personal details and get real time debt information from the business you owe money to, it creates a much-improved experience for that debtor, which translates to a positive brand experience”, Dee adds.
There are many considerations for businesses who need to engage with a debt collection company, and protecting their brand reputation is just one of them.
Dee sums up, “Ultimately, we’ve found that most customers tend to steer towards those collection agencies who have values reflective of their own.
Debt collectors are not receiving the same amount of business they did before, so the only way forward is to innovate. Our customers are embracing the innovative approach that Cloud Payment Group has taken, as innovation is in their own DNA. That’s a true comfort when you are looking to not only protect your brand but also recoup losses.”