How can collections help vulnerable customers?

7th September 2021

Vulnerable customers in collections require help.  They need to feel like they can contact third parties to discuss their situation without judgment.  Let’s face it, it’s often not easy for customers to pluck up the courage to get in touch, but when they do, they really want and need slick, frictionless processes.  That’s why having customer centric systems, for customers and colleagues to navigate, is critical to a successful customer journey.

One of the biggest frustrations customers quote in industry surveys, is having to repeat themselves over and over again, so we all have a duty to limit that repetition.  Gathering I&E data is one of the biggest challenges when it comes to repetition.  If a customer has multiple accounts with a supplier who doesn’t have a linked-up system, a customer will have to go through the process of explaining everything again.

At Lantern we’ve put our focus on technology initiatives first and foremost making things easier for our customers, enabling them to engage, manage their accounts online and remove any obstacles and stress.  We’ve done that by developing a market leading, unique to our industry, Single Customer View (SCV) platform within our CRM.  

Next up is the customers’ ability to choose their channel.  We know that c60% of Lantern’s identified vulnerable customers choose to service their accounts digitally, so a key consideration was making sure that our infrastructure was set up & maintained so all systems ‘talk to each other’, giving customers access to the same information however they choose to get it.  The joined-up approach should also allow a customer to start a process on any given channel but have the ability to transfer to an alternative channel, if they choose, and pick up where they left off – with no repetition.

Key to that approach though is ensuring your digital offering gives the customer the same functionality whether they call or webchat.  Don’t direct them to “fill out a form” or “call to confirm” as that deviates from the customers chosen channel.  As I mentioned before, engagement is already difficult for customers, and for the business to achieve, without having to disengage with a customer to allow processes to be fulfilled.  

But what about when that customer has engaged?  How do you make sure they feel like they’re in a safe environment, that they will understand what they’re being asked and will open up to ensure they’re not agreeing to anything they can’t maintain?  It’s crucial to ensure that the right questions are asked, in the right tone and at the right time.

Here are some of the things to consider when engaging with customers:

  • Plain English – consider the reading age of your customer and customise your content to match – at one conference recently I heard a creditor explaining their “typical customer” had a reading age of 8!  Could an 8 year old understand your communication?
  • Review all your communication – even the standard default wording in the S87 document has been re-worded to be less daunting, make sure that flows through all your communications, including webchat
  • Keep your language consistent – don’t jump around with your words, keep it clear and simple.  Referencing an Agent, a Representative and Advisor or an Associate just doesn’t help a customer understand what/who they will be speaking to!
  • Make all channels consistent – just because someone chooses to self-serve doesn’t mean they don’t deserve the information and support someone would receive if they called in.  Check your website, check your FAQ’s, ensure that there are sufficient support tools every step of the way, just like you would if you were in direct conversation with someone
  • Be accessible – on any channel, at any time (within reason of course)
  • Be friendly – if you’re in open dialogue ask open questions, build a rapport, get to know the customer.  What is on their mind?  What are their daily challenges?  What support have they got/can they get?  Evidence shows that building rapport leads to more open and honest discussions which will lead to more affordable and sustainable plans being set

It’s common knowledge that vulnerable customers are more likely to agree to something without fully understanding what it means to them.  That why the reading age language adjustment is so important, but it’s also as important to ensure that you’re checking in with the customer throughout your engagement to make sure they understand what is being asked of them, or what they’re agreeing to do.

We all have to probe more, gently of course, but make sure you’re understanding what might impact them, have you understood their circumstances as well as you could, have you prompted them to tell you more about their situation, do they need more external independent advice?  The more we encourage open dialogue the better the end-result will be.  Financial difficulty for Vulnerable customers is stressful enough as it is, so we have to be laser focussed on making it a frictionless process.

As you can tell I’m particularly passionate about this subject and getting it right for our customers, which is why I’m delighted to be participating as part of the Affordability and Vulnerable Customers Panel at the Credit & Collections Technology Think Tank event on the 16th September.  Why not join the event where I will be happy to field any questions on this topic.

*Denise will be part of a panel discussing Affordability at the forthcoming Online Collections Technology Think Tanks. Join Denise at the event on Thursday 16th September from 9.30 am.

 

 

 

 

 

 

Click here to sign up for this FREE event and tune in to hear Denise Crossley’s views at the virtual event.