What if your debt collection strategy had an experienced agent working in the background to help reach your goals? This agent wouldn’t just take a one-size-fits-all approach, they would analyze the best message, time and channel to reach out to each individual account. If this sounds too good to be true, it’s because no one person could accomplish these feats on their own, but the right AI can.
Machine learning built for debt collection can help your business recover more by spending less for better results. One example of this is Retain debt collection software, which specializes in sending digital communications and using machine learning to give businesses the ability to use personalization at scale. Let’s dive into how your business could use Retain’s machine learning to boost debt collection.
What is Machine Learning for Debt Collection?
Machine learning is a subset of AI that learns and improves its core function over time. The technology does this by analyzing large amounts of data (in Retain’s case, engagement data from digital debt collection communications). These algorithms learn from the insights it gathers to make better decisions. The more data is observed, the more machine learning algorithms will improve.
Retain uses a patented machine learning algorithm called “Heartbeat” to automate digital communications for debt collection. Heartbeat’s intelligence dynamically selects the time, message and channel that are most likely to be engaged with by each individual consumer. Plus, it becomes more effective as it gets to know the unique preferences of the customers you’re serving.
Machine Learning Makes Personalization at Scale Possible
More than ever before, consumers expect businesses to adhere to their preferences. Retain’s machine learning makes debt collection personalization at scale possible through:
- Content Selection: Based on the content templates your business has built, the machine learning feedback loop figures out what content will resonate based on data points related to that customer.
- Expert Timing: Machine learning helps your business reach customers at the right time while staying compliant within client-defined parameters, applicable law and legal guardrails.
- Channel Selection: The machine learning algorithm also decides which digital channel to use, email, text or voicemail drop, for each communication based on predictive models and dynamic engagement feedback.
- Resource Optimization: Through data, Retain’s machine learning dials in the amount of effort to put towards each account. It builds an outreach strategy that’s focused on optimizing operational efficiency and recovery outcomes.
Machine learning technology leans into personalizing the process, which leads to a better experience for consumers. When businesses scale their collections through technology, it helps them attain better margins while putting consumers first. It goes beyond simply having a generative AI tool create a message or content template. Machine learning is making informed decisions based on the nuances of your business and behavior of consumers.
Debt Collection Strategies Benefit from Testing
At its core, debt collection is about engagement, and one of the best ways to maximize that in digital communications is through testing. Let’s start with content. Retain’s machine learning helps to optimize your debt collection strategy by analyzing which of a business’s approved message will resonate best with consumers. It facilitates data-driven A/B testing which offers insight into the most effective tone and call-to-action for better personalization at every step of the experience.
For example, let’s say a customer hasn’t been responding to a strictly informative email outlining their debt. Machine learning could try a more upbeat message (chosen from your approved content library) to get attention. This variable (i.e., message tone) could make the difference between getting a repayment and being left unread. Retain actively tests not just content, but also times, communication channels, call to actions (CTAs), subject lines and many more variables all happening concurrently. Machine learning acts faster than any human being and can incorporate several changes in one iteration.
Machine Learning Supports a Consumer-Centric Experience
In the debt collection industry, empathy is essential. Customers want to feel understood by businesses and that starts by honoring their preferences. Retain’s machine learning does the work to better understand each individual customer to help get their attention for a path forward.
Retain’s approach to using machine learning for debt collection focuses on enhancing the experience customers have with your business. When customers feel their preferences are respected, they’re more likely to engage with your message and make a repayment.
See Retain in Action – Schedule Your Demo Today!
If you’re ready to collect more by spending less using machine learning, Retain is here to help. Schedule a demo with our team today and get a hands-on look at how Retain can improve your recovery rates.
