It's indispensable as part of your toolkit. In their report ‘The customer mandate to digitise collections strategies’, McKinsey found that 73% of customers in late delinquency took action (made a payment) when contacted through digital channels.

Digital self-service solutions generally fall into two categories: static and dynamic. Understanding the differences between these options can help organisations choose the right solution to enhance their debt collection processes and improve customer satisfaction.

Static customer self-service

Static digital self-service solutions are designed with a linear approach. They guide customers through a series of predetermined web pages. They typically include:

Fixed Payment Options: customers can make payments using predefined methods.

Standard Online Forms: for example, Income & Expenditure (I&E) forms that collect basic financial information in a fixed format.

Limitations of Static Portals

Lack of personalisation: they cannot adapt to individual customer circumstances, which can lead to higher dropout rates and may not meet regulatory requirements.

Rigid structure: customers with unique needs or complex situations may find static portals inadequate and require additional support from agents.

The advantages of dynamic customer self-service

Dynamic digital self-service offers a more flexible and personalised experience. Key features include:

• Personalisation: every customer experiences a journey tailored to their specific circumstances, reducing the risk of wrongful treatment that may cause detriment. This includes responsive online forms that change based on customer input, ensuring relevant questions are asked. This delivers the personalisation that regulators expect.

• Flexibility: The journey can adapt in real-time to the customer’s needs, offering relevant options and solutions and helping to reduce dropout. Thai includes adaptive payment options – methods and plans that adjust according to the customer's financial situation, reducing the risk of causing foreseeable harm.

• Efficiency: by capturing detailed and accurate information, dynamic self-service reduces the need for follow-up by agents, saving time and resources.
  

Real-world application: adaptable customer journeys

Dynamic digital customer self-service shines in scenarios where a nuanced approach is crucial. For instance, if a customer indicates financial hardship, the portal can adjust to offer alternative payment plans, direct the customer to social tariff applications or an appropriate support journey, or flag for agent intervention. 

As information is gathered in a structured and accessible way, it provides useful context and insight into your customers' circumstances and preferences that can be used to inform further engagement.

This adaptability ensures that the customer receives the most suitable assistance promptly, reducing stress and improving resolution times.

Conclusion: choosing the right self-service solution for your collections operation

Digital customer self-service can be a highly effective debt resolution tool across the whole collections lifecycle.

By understanding the strengths and limitations of different products, businesses can implement the most suitable solution to enhance customer engagement, streamline operations, and improve overall satisfaction. 

If you’d like to explore the options for customer self-service in collections, please get in touch.