If you have low-balance or early-out accounts, online virtual negotiations can relieve the stigma of settling their debt because it will let a person come up with a payment plan without the requirement of talking to a human.
Consumers can easily and securely self-cure 24/7 in a fully PCI-compliant environment that lets them submit payments, make promises, or enroll in payment plans. Results have proven this solution to be an effective tool for contacting low-balance, early-out, and hard-to-reach debtors.
Here are four reasons why virtual negotiations can help collections:
- Feelings do not get in the way. The debtor knows they owe money, but some people do not like to talk to other people or they are embarrassed. They would like to make a deal, but they are afraid that they will get stuck talking to some hard-sell agent. Virtual negotiation means you are talking to a computer. This can make people more willing to work something out especially if they tend to be shy in person.
- Higher comfort level. An interesting psychological point to negotiations is the “home turf” idea. Face-to-face negotiations that take place at a debt collector’s office can create a “home court advantage” for the collector. The debtor may feel less comfortable and either shy away or be hostile to the negotiator. The virtual negotiator lets the debtor strike a deal from home, which puts them in their own “home court”. The debtor will feel more comfortable and at ease which will lead to a more open attitude and willingness to work out a deal.
- Increased flexibility for both sides. Face-to-face negotiations can drag on for a long time. Virtual negotiation can result in a faster payment plan settlement because the debtor does not have the human element to deal with. The negotiation software can have a variety of offers and counter-offers, as can the debtor. The flexibility and speed of meeting virtually is to the advantage of both parties.
- Faster debt collection. An online virtual negotiator means that the negotiation and settlement plan can be done at anytime day or night, including weekends. The problem with face-to-face and phone negotiations is that the debtor must take time out of their workday to work out a payment plan. By allowing the discussion to happen online, the debtor can work out a plan during the weekend or later in the evening when both you and they have gone home for the night. Considering that more and more people do their business online this is to your advantage.
As more people come online to do all their business dealings, these types of negotiations will be more welcome by the consumer who owes debt. This can result in a faster and more complete debt settlement for you. Contact BillingTree today to learn how we can create a virtual negotiator for your business.