Just as options for payment are changing rapidly, so are options for debt collection. In fact, with personalized video reminders, the future of payment reminders is here now. What differentiates this payment reminder solution from other methods is that it centralizes all payment options in one reminder. Not only can debtors opt to pay immediately, they can also select other payment solutions such as payment via email, settling the debt in instalments or setting up debt assistance with a credit counsellor, all with just one click. This cutting-edge payment reminder solution also offers a unique channel for reaching the visually-impaired, illiterate customers, customers who speak another language, and younger customers who are all harder to reach via traditional channels.
Video reminders approach debtors with private, personalized animated videos to encourage them to pay their outstanding bills. In a world with ever-increasing household debt, this benefits both debtors and those seeking to settle the debt.
Even in a country as small and as wealthy as the Netherlands, with just over 17 million residents, the number of households with problematic debt is estimated to be at around 18%. With memories of the last credit crisis still looming, both the private and public sector are looking for payment reminder solutions that quicken the pace of payment. Key to ensuring debts are paid is maintaining communication between the debtor and the debt collector.
Recent findings have shown that a personalized video reminder can be highly influential in encouraging debtors to settle their accounts. As many as 75% of recent video reminder users reported to have greatly appreciated this form of payment reminder. In particular, the private, personalized approach was an important factor in encouraging debtors to pay their outstanding bills promptly, if not immediately.
Most debtors have fairly innocent reasons for missing a payment and a gentle reminder is all that is needed to settle the bill. Video reminders offer a way to send a reminder without creating any animosity between the debtor and the debt collector and can be sent in various ways. A letter can be sent that contains a QR code that the debtor can scan to access the video. Emails, text, and WhatsApp payment reminder messages can also contain a link to the video which offers a number of payment options so that payment can be effectuated immediately. If the debtor is not able to pay the outstanding debt in full, he or she can opt for payment in instalments or contact a credit counsellor for debt assistance. The video reminder also offers the option of contesting the bill if the debtor believes it has been sent in error. What makes this payment reminder solution so special is that the debtor can access all of these options with just one click.
Private & personalized
As previously mentioned, a crucial factor to the success of video reminders is its private, personalized nature. The debtor is not embarrassed because he or she is faced by another human being who confronts them with their outstanding bill. Ironically, this is what can also save the debt collector money and avoid more Days Sales Outstanding (DSO). The earlier the debt is settled without human interference, the more money the debt collector saves, not just because the bill is paid, but also because no personnel costs are incurred with phone call reminders.
For those more difficult cases in which the debtor can still not be contacted despite repeated attempts, or if churn has occurred and the debtor has been cut off from services, the video reminder offers even more features. When the recipient of the video reminder does not respond to the payment request, data gathered from the recipient can show exactly whether the video reminder was viewed and for how long, so the debt collector knows whether debtor had received the payment reminder. Information such as this can be important should the case ever go to court or if other legal action is required.
Whether your business or organization requires more traditional or cutting-edge payment reminder solutions such as video reminders, Mi-Pay has the expertise to assist you in finding and achieving your debt collection solution.
For more information about our reminder solution, contact our sales department or download the whitepaper!
About the author
Head of Sales
I’m Michael Martens, Head of Sales at Mi-Pay. I make sure that Mi-Pay maximizes profit on existing customers as well as new business.