With debt collection becoming more critical in a poorly performing economy, collections agencies are going to find they have more work to do with fewer qualified and experienced agents to do it.
So says Ken Ellwood, business development manager at Ninzi-Connect, who notes that research conducted by Ninzi-Connect Software found that in a typical non-automated collections environment, over 40% of the calls being handled by the agents are bad numbers, busy signals and non-answered calls.
In addition, when looking at the time agents spend on handling the calls, the research found that about 50% of agents' time is essentially non-productive.
"One solution could be to go to the market to hire and train more agents in the hope that they will pay for their training as soon as they are put behind a telephone - and to hope that another agency does not poach them as soon as they are trained and have gained some experience," explains Ellwood.
This approach, he says, can be ineffective and expensive. In this competitive market, an agency's profit comes from maximising the value of its collections while minimising the cost. This means getting to the right person as quickly as possible and concluding your business in the shortest space of time.
"Training and scripts can help in improving agents' performance, but the best way to improve collections is through an integrated collections platform that automates as much of the collections process as possible," says Ellwood.
"Of course, automation can only achieve limited productivity increases. With the improvement of efficiencies, this platform will help agents get in touch with people quickly and easily, assisting them concluding the deal."
Ellwood continues that the software chosen by the agency must be designed specifically to improve collections and integrate automated functions with those tasks humans are still required to do. This entails preparing detailed work schedules that will ensure agents are at their desks making calls at the right time. This "right time" is one that works for their targets and not one that is convenient for the company or the agent.
"This scheduling may result in staggered or unusual working hours to ensure agents can get in touch with people instead of leaving voice mails or messages that are never returned. Effective collections platforms are able to determine the best times for agents to call using advanced algorithms which draw on data stored in the system," he notes.
"The use of automated communications makes it easier for people to interact with the collections agency through touch tone responses, SMS or e-mail messages or IVR [interactive voice response] systems."
Ellwood explains that the IVR, for example, can lead a person through various options to conclude their business or provide the ability for someone to break out of the automated system and talk to an agent when necessary, minimising the use of the expensive resource, people.
"Additionally, these integrated collections platforms should be able to carefully measure the performance of the collections agency, each book it deals with, and all the way through to each agent's performance allowing the agency to improve business efficiencies," he says.
"The ability to analyse all the data generated daily from automated functions and human interactions is crucial to continually improving performance and thereby the success and profit of the agency."
Ellwood concludes that studies by Ninzi-Connect Software have shown that using an integrated collections platform that automates the unproductive, low-value work agents normally have to do will assist in putting them in touch with their targets and deliver significant improvements in collections.
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