Conversational AI – The Future of Automated Debt Collection
The traditional approach to debt collection - chasing customers by repetitive calling or sending emails/letters - is tedious for both customers and collection agents. Agents face challenges as they don't get appropriate responses from the customers, and customers want to avoid 'unpleasant' conversations.
However, a new approach is emerging rapidly among finance businesses and debt-collection agencies - they have been adopting Conversational AI Voicebots and Chatbots for debt collection. Apparently, automated debt collection leads to better results: faster collection, lower collection costs, higher pay-back rates, and better CSAT scores.
What Are Debt Collection Chatbots and Voicebots?
Debt collections Chatbots and Voicebots are bots that stimulate human-like conversations and engage with customers in debt collection activities in place of human agents. Simply put, AI-powered bots reach customers and convince them to pay debts.
Why Automated Debt Collection?
Thanks to the advancements in Conversational AI technology, Chatbots and Voicebots have grown mature enough to handle sophisticated conversations, address objections, and persuade customers to pay, just like human agents, sometimes even better.
Through AI-powered bots, you can reach customers through most channels. You can deploy Voicebots on Calls and Chatbots on digital channels: Text (SMS), Facebook Messenger, WhatsApp, etc. Floatbot offers unified bots - the same bot across different channels - for consistent conversations. This way, the customer can drop off at one channel and continue the same conversation on another.
Customers avoid talking to human agents as they could find it uncomfortable or even embarrassing. Sometimes, human agents might fail to show empathy. On the other hand, customers feel it is convenient to talk to Conversational bots that sound emphatic and maintain a friendly tone throughout the conversation. This leads to better responses from customers, higher efficiency of collection calls, and more revenue.
With Conversational AI in place, you can reach more numbers of customers as if you have an unlimited supply of debt collection agents. It really helps when you deal with a huge number of customers or when working against the clock.
Low Operational Costs
Having Conversational AI Chatbots and Voicebots can reduce operational costs by up to 40%. Thanks to the bots, you save the costs involved in recruiting, training, and managing human agents. Also, you get a perfect solution for always looking for replacements because a significant number of human agents quit the job in a couple of months, given the 'unpleasant' nature of the job role.
To Sum Up
Businesses are adopting a new approach to the debt collection process, which is turning out great for them, leading to better ROIs. They have a competitive advantage over businesses clinging to the old ways of debt collection. Market experts expect automated debt collection to replace the traditional approach in the near future.