Why Debt Collectors Use CRM,
Sales Enablement, AI

Using a CRM system with sales enablement tools can boost a debt collection business's revenue

One of the most powerful tools that can help debt collection businesses achieve their goals is a CRM (customer relationship management) system that integrates sales enablement and AI (artificial intelligence) features.

We don’t have to tell you how challenging the debt recovery/collection business has become in the past few years. From keeping up with new regulations to equitably speeding up the collection process, it’s not easy.

That’s why you need the proper toolset to meet these challenges. TigerLRM’s CRM with Sales Enablement powered by AI will help you:

• Speed up the collection process.
• Stay within quickly changing laws and industry standards.
• Use multiple channels to find and connect with debtors.

What is a CRM with sales enablement and AI, and why do you need it for debt collection?

A CRM (Customer Relationship Management) system alongside AI-powered sales enablement will allow you to make connections with debtors and provide meaningful services as they go through their debt collection customer journey.

Using A CRM With Sales Enablement and AI Can Help:

• Enhance agent workflows by prioritizing tasks, communicating with debtors through various channels, and monitoring their performance.
• Automate repetitive tasks, analyze debtor behavior and preferences, predict debt recovery outcomes, and provide personalized and empathetic interactions.
• Manage all your customer data in one place for a complete view of their journey from start to finish.
• Automate email & SMS text campaigns with triggers and workflows to send personalized messages based on customer behavior. Generate and track campaign performance.
• Stay updated on debt collection laws and regulations to avoid violations of FDCPA, CFPB, and upcoming Visa card payment rules in 2023. Utilize the CRM and AI In TigerLRM for legal and ethical communication templates and guides.
• Excel in debt collection, focusing on communication skills and empathy. Understand your debtor's situation and offer mutually beneficial solutions. Use our LRM (Learning Resource Management) system to create training modules on persuasion, negotiation, and emotional intelligence for faster deal closing.
• Measure and improve customer satisfaction to retain clients and increase debt collection success. TigerLRM offers sales enablement for analytics and feedback tools to enhance service quality.
• Managers oversee their teams, create reports and analyze data to enhance the collection process while boosting revenue.

Will Sales Enablement Work in the Debt Recovery Industry?

While “sales enablement” is typically considered for sales, which it does exceptionally well, it also works well with the customer's debt collection journey.

The debt collection customer journey, sometimes called the debtor’s journey, consists of four main stages a debtor goes through, from the moment they incur a debt to the moment they pay it off or settle it or choose not to pay it. This includes:

• Awareness: This is when the debtor discovers that they owe a debt and what might happen if they choose not to pay it. They receive communications from the original creditor or a collection agency at this stage. Some consumers find this out when checking their credit reports.
• Consideration: A debtor will decide what to do about the debt with their newfound knowledge. They can choose to pay it ultimately, negotiate a lower payment or a payment over time, dispute the debt, or ignore it. They will likely research options, talk to a financial advisor if they have one, and perhaps begin communication with the creditor or debt collection company.
• Decision: The debtor will decide the course of action they believe works best for them. This could be full payment, partial payment, a settlement for a lower amount, ignoring the debt, challenging the debt, or doing nothing. They sign a contract or an agreement confirming their decision.
• Satisfaction: The debtor experiences the outcome of their decision and feels either satisfied or dissatisfied. They may receive a confirmation, a receipt, a letter of deletion, or a lawsuit. They may also see changes in their credit report, financial situation, or emotional state.

Sales enablement helps your team follow each stage of that journey with specific collateral, objections, and talking points to help debtors along their journey and be seen as trusted advisors, not adversaries.

The role of AI in the debt collection industry

AI can search communications, records, legal documents, and more to find patterns and data to help your team respond to debtors' concerns and generate more revenue.

AI is increasingly critical in the debt collection and recovery industry. AI will allow your company to use highly advanced analytics, pattern recognition, and machine learning (ML) to automate your debt collection strategy.

Teams can make data-driven decisions and drive DSO levels down, increasing team efficiency and revenue.

How TigerLRM is Meeting Challenges in The Debt Collection Industry In 2023

Some of the main challenges to the debt recovery industry in 2023 include:

The Need for Real-time Data: With debtors having multiple points of contact and transient contact information, real-time data is needed to keep representatives updated. TigerLRM can track and record all communications in the CRM application; this includes social media, phone, email, and more.

Scalable Needs: Identifying and gauging vulnerable debtors and finding their scale of need is essential. Use sales enablement to create unique case lists and other criteria when your cases fall into scale needs.

Case prioritization: Identify increasing numbers of cases that can be attended to by your current staff and operation. Using AI-driven data, TigerLRM can learn patterns based on existing data and prioritize your cases.

Laws and Regulations: Reps must follow all industry regulations and be informed of new laws. With TigerLRM’s Learning Management System, you can train new hires and existing staff on or off location on any device.

Connection issues: Consumers as a whole and debtors answer their phones less often, and new rules limit the number of contact attempts. TigerLRM’s powerful data reporting and contacting features, including social media, SMS text messaging, email, direct dialing, and more, can make communications far easier.

Account Settlement: New laws, including those regarding medical debt and reporting, are changing how accounts are settled. Your playbook in TigerLRM can guide your reps on navigating changes in the account settlement process with pre-populated management-approved templates.

Customer Data Automation: Freeing up workflow is a priority, and consolidating data about your debtors can prove very challenging. Your CRM can automatically collect debtor information from various sources, providing a more comprehensive view and options. This frees up agent time, so they can become more productive and increase debtor contact.

How a CRM with sales enablement can help you communicate and follow up with your debtors effectively

Communicating with debtors is challenging, but you can improve your results and efficiency with the right processes and tools. Here’s how a CRM with sales enablement can help:

• By incorporating sales enablement into your CRM, you can streamline your collections process and reduce the time and effort required. Integrating sales enablement into your CRM allows you to streamline your collections process and reduce the time and effort required.
• AI-powered tools can help you predict which debtors will most likely pay, allowing you to focus your efforts accordingly.
• Utilizing sales enablement tools can improve your communication strategies by tailoring them for each debtor, resulting in a greater chance of success.
• Tracking your collections efforts in real-time enables you to pinpoint areas that require improvement and enhance the efficiency of your collections process over time.

In closing

Debt recovery and collection is still a growing market in 2023, and despite the competition and challenges, the industry can be very profitable. But businesses must use the best tools and technology to stay ahead of the competition. Using TigerLRM, the CRM with Sales Enablement built-in, powered by data-driven AI, can give companies a competitive advantage.