In the first quarter of 2024, total U.S. household debt rose to $17.69 trillion, with 9 percent of credit card accounts and 8 percent of auto loans in delinquency, and 3.2 percent of overall debt in some stage of delinquency. That continues the upward trend, as U.S. household debt saw a 4.8 percent increase from Q3 2022 to Q3 2023, with the largest increase coming from credit card debt, with a 16.6 percent increase during that time.
With the rapid shifts in debt collection management and the increase in available debt collection software, agencies are adjusting their focus to a more streamlined, data-based approach with an emphasis on methodologies that increase customer engagement. This makes communication easier and provides a more empathetic experience to debtors.
SMS Gains Momentum
A recent SMS Comparison report found:
- Over 80 percent of adults in the U.S. now own a smartphone
- 90 percent of customers prefer texting over calling
- 75 percent of customers would rather communicate with customer support via text
- 45 percent of customers will respond to a text vs. 6 percent for email
- 90 percent of people open a text within three minutes
This shift in communication preference makes it more important than ever to reach people where they are, in the way they want, when it’s convenient for them. This trend helps move the collection process forward, reduce friction, and facilitate payment.
Unrivaled Open Rates
The revision of Regulation F, allowing SMS communication in debt collection software solutions, sustainability issues, and the rising costs of traditional methods, have created opportunities for text messaging to become an integral part of an omnichannel approach to meet these challenges. With open rates for texts at 98 percent vs. email at approximately 28 percent and younger generations choosing text as their preferred mode of communication, it’s imperative to optimize your text capabilities to communicate with debtors in their preferred method. If you’re not texting your debtors, you should be.
Meaningful Communication
In addition to higher RPC (Right Party Contact) rates, SMS allows recipients to open messages and respond at their leisure, lessening tension, increasing the chance of a response, and opening a two-way dialogue. Well-crafted, personalized, and conversational messaging, updates, reminders, and thank-you follow-ups allow debtors to have a depressurized, more positive experience overall. All of this leads to increased engagement, efficiency, and profitability for the agency.
Optimized Resources for Collection Software Solutions
SMS automation lets you allocate your resources and workforce where they’re needed most, allowing for a more efficient workflow for your support teams and a better customer experience, no matter the channel. Text is also cost-efficient, providing savings over traditional methods while providing instant delivery and higher response rates. You’ll see reductions in outbound call volume, lower recruitment pressure, and reduced mail and printing costs while achieving higher engagement and higher PTP (Promise-to-Pay), leading to higher PPA (Profit per Account).
At Vaspian, we believe in going above and beyond for our customers and that businesses of all shapes and sizes deserve access to epic communications. That’s why we offer a rich suite of SMS debt collection software solutions features with TrueText to help you improve your bottom line.
- Branded messages with customizable templates
- Instant autoresponders
- Highly personalized and secure messages
- Effortless payment reminders
- Keyword triggers
- Advanced feature library
- Detailed analytics
- Complete conversation archive
- 24/7 TrueText Team Support
Your search for collection software solutions ends here. Whether you’re new to the game or a large enterprise, Vaspian has solutions and features to improve your operations and increase revenue. Schedule a free demo today to see TrueText in action for yourself! Reach out to us here, and we’ll get the process started!