Designing Collection Communications for Consumer Response

Mike McDonnell

As the spotlight shines on new mobile and electronic communication technology developed to enhance consumer responses and improve payment collection, one of the first steps for accounts receivable management agencies is to take a pulse on how effective their current communication program is operating today.

Start with the basics. Before adding on to your existing communication program with new consumer outreach methods, it is vital to examine the foundation and analyze its effectiveness. What you may find: the letter campaigns that you’ve used for years could be optimized with the latest advances in paper-based communications.

Over the years, printed communication technology has evolved, providing collection agencies with access to more economical color options, paper types, trans-promotional opportunities and the design freedom to create printed documents that result in improved consumer responses.

Additional benefits that have been found include:

Greater Consumer Impact: Impactful communications increase the chance for payment after the first letter vs. second or third notice.

Improved ROI: Targeted, smart consumer communications enhance the propensity to pay and serve as a vehicle for consumers to opt in to more economical electronic communications.

Focus on Design: Consumers positively respond to documents that are attractive, eye-catching and emphasize the important elements of their document.

Easier to Read and Comprehend: Consumers have been found to pay their outstanding balance when they understand and have all the information in front of them in an easy-to-read format. By creating easy-to-read communications, agencies can reduce consumer calls into their customer service center.

Cross Promotional Opportunities: Encourage consumers to pay using methods that they prefer and in a manner and time frame that suits their individual needs.

Brand Recognition and Consumer Trust: Consumers are more apt to engage with an agency when they recognize the brand or have trust that the communication they are receiving is legitimate – institutionalize your brand.

Using the latest high-speed, full color digital printing technology, you can easily access dynamic document creation technology and in-house creative experts that can design a letter or statement that maximizes response rates. Additionally, agencies can now tailor paper-based communications that are not only compliant but personalized, even tailored, based on account characteristics.

By employing intentional design practices and tailored messaging, the end result is a collection of unique documents, designed specifically with the recipient in mind. Once the foundation has been assessed, the data is validated and A/B testing is conducted on a regular basis, agencies can maximize and make the most of a multi-channel communication strategy that allows consumers to receive their communications electronically, through text messages or in other ways that are flexible, convenient and opted in according to their preferences.

The trend toward utilizing email and text messaging continues to garner interest within the ARM industry. And, with good reason. These channels offer a cost effective solution and provide the consumer with numerous payment and communication options, which they can pick according to their needs and individual situations. As agencies continue to consult their legal counsel regarding the most effective and compliant deployment of these new channels, they can simultaneously work toward maximizing and using some of the latest technology advances to improve their existing program and accelerate payments.

To learn more about Designing for Consumer Response, view an archived RevSpring webinar on the topic here. Also be sure to register for the next live webinar in the RevSpring educational webinar series titled: Suppressing Non-Qualifying Mail to be held on June 13, 2013 at 2:00pm EST.