Technology is Shaping the Words Collectors Use

Debt collection firms are focusing on building relationships with debtors to resolve debt issues through both live and automated collection systems. To achieve this goal, scripts for both automated and collector-initiated calls have shifted to a more customer service template and away from demanding collection calls.

New technology is playing a big role in determining what specific words help a collector get a promise to pay.

An understanding of customer psychology is key to successfully deploying technology designed to support communications in customer-driven organizations, according to Adeptra, a company that provides automated communications services.

For example, the use of some words such as “fraud” can be perceived by customers as negative and arouse suspicion, increasing the likelihood of a customer ending the call early. Adeptra, based in Norwalk, Conn., has found that fine-tuning the choice of words and their sequence in scripts, helps personalize the interaction allowing organizations to engage more successfully with their customers.

Ft. Myers, Fla.-based CallMiner, a firm that provides speech analytic solutions, points out that scripts for collections calls vary based on whether the debtor carries secured or unsecured debt. With the former, collectors have certain hard assets they can recover and other assets for which they can file a claim. With unsecured debt, collectors typically employ some sort of persuasive language to attempt to collect the debt.

CallMiner research shows that stronger language — which can violate the Fair Debt Collections Practice Act (FDCPA) if it includes intimidation and threats – is not uncommon.

But overly aggressive collector calling strategies are passé, according to Jeff Gallino, CallMiner chief technology officer. “The most successful collectors are persuasive and subtle, knowing how to balance fear (e.g., of negative credit report information) and empathy. Speech analytics helps collection centers identify agitation and empathy and in so doing, drive successful collections.”

Too much agitation, the debtor withdraws or hangs up, Gallino added. Too much empathy, the debtor becomes the collector’s friend. Either minimizes the chance of collection. So balance is important.

The accounts receivable management industry has been taking notice of the shift. ACA International’s Collector’s Pledge calls for members to “treat people with dignity and respect,” which would mean, among other actions, not using intimidation and threats. To date, more than 23,000 ACA members and their employees have taken the pledge. The ACA board is considering making the pledge a mandatory requirement of membership versus its current status as a voluntary agreement.

A critical factor in recovering the maximum amount of debt is the ability to resolve the situation as soon as possible, according to CallMiner data. For every debtor interaction there is a decreased probability that a payment or a promise to pay will occur. Though that has been true for several years, the need to resolve the debt has become more critical in the last couple of years as more creditors and collection firms are attempting to recover a growing volume of receivables and delinquent debt.

Speech analytic programs like CallMiner take every word and phrase that is spoken, how those words are spoken (e.g., acoustic information) and the context in which those words are spoken and converts those data points into statistical information that customers such as collection firms can use for training and script development.

CallMiner converts various aspects of a call or interaction – the words, the acoustics and the context – into data and stores it in an open database. Data can then be measured and improved. “If you don’t measure it, it didn’t happen. If you don’t reward it, it may not happen again,” said Gallino.

What words are used, and when they are used to secure a payment or a promise to pay, is very important, according to Gallino. Improper technique, like being too aggressive, even at an early stage of the conversation, can cause a debtor to end the conversation.

The gender of the automated agent can also have an impact on how customers respond to a communication, according to Adeptra. A female voice is typically more likely to hold their attention for longer, while a male voice is more likely to prompt a decisive outcome.

How a script is tailored also has a significant impact on the call’s effectiveness. Where in the script the customer’s name appears in relation to the organization’s name has a direct bearing on the “feel” of the call and can reduce disconnects by over half.

Depending on the region and nature of the call, the system should attempt to establish an engagement dialogue by saying something like “Am I speaking to Bill?”

CallMiner’s experience shows that the most successful collectors always summarize with an action plan, like “Mr. Smith, you have agreed to pay $50 next Tuesday,” as well as detailing the consequences of inaction, like a negative entry on a credit report.

A call to action should be included in the script, according to Tony McGivern, Adeptra’s Chief Technology Officer. However, he said the wording has shifted over the last couple of years from demands for payments to more customer service solutions. Various algorithms and scripts can result in the debtor agreeing to payment arrangements, though the most complex cases will still have to go to a live collector.

McGivern likened this to a complex call handled by a front line collector that has to be transferred to a manager for a resolution.

“You can always talk to a [collector], this is more of a complimentary solution,” McGivern said.