NAVIGATING A VOLATILE ENVIRONMENT
COEO, COLLECTIONS AND CURRENT CUSTOMER TRENDS

COEO

Keeping in-line with customer trends is crucial when it comes to collections. When we understand how events, such as the cost-of- living crisis, will likely impact customers, we can prepare and adapt strategies to create better outcomes for all. This article shares a selection of customer trends we’ve uncovered and what to expect next.

CHANGING WAYS OF CUSTOMER ENGAGEMENT
The most significant shift we’ve noticed is the incredible growth of digital adoption. Digital engagement has become the norm for all stakeholders (including clients), with the need for information and action to never be further than a few clicks away.

It is more important than ever to offer customers more flexible ways to engage with us and address the consumer shift to digital channels.

CHANGING BEHAVIOURS
It will come as no surprise that there has been an increase in financial vulnerabilities due to the cost-of-living crisis, resulting in difficulties for customers trying to maintain contractual payments.

UNDERSTANDING VULNERABILITY IN COLLECTIONS
It is vital to understand when a customer is vulnerable, as, in collections, it often directly impacts their ability to manage finances.

Continuous vulnerable customer training, alongside coaching and testing, ensures customer-facing staff and specialist support teams are equipped to deliver good outcomes for customers facing a variety of temporary or permanent vulnerabilities. Examples include:

• Having prescriptive, efficient, and effective methods for identifying vulnerable customers.

• Actively listening to be thoughtful, consistent, and clear in agreeing to an appropriate way forward.

• Segmentation that can be translated into appropriate action has also increased as a more profound analysis of vulnerable customers allows us to find targeted solutions for specific circumstances. This investment in developing a greater understanding of customers and the nature of their vulnerabilities has helped develop strategies that create consistently better outcomes.

WHAT WE EXPECT
Considering the impact on affordability, we anticipated and are now experiencing a reduction in instalment values; (and an increase in payment plan lengths).

As previously mentioned, digital journeys also play an increasingly significant part in the lives of people today. We expect this will continue to rise across all sectors; therefore, it becomes essential to have high-quality digital journeys that are continuously reviewed and improved based on customer feedback.

FINAL WORDS
As with many things, there is no single solution. Short-term intervention needs to be balanced with longer-term solutions. For example, better education has a part to play. In addition, a more significant focus on financial literacy from a younger age will help prepare individuals with the tools they need for a more financially savvy future.

In the meantime, the focus in collections shall remain on making solutions simple for consumers and creditors in an ever-volatile macro-environment.