November 2008

Calling all debtors: Using voice messaging
to increase collection recovery rates
Web-based system helps collectors connect with customers.

In the competitive world of marketing, a campaign’s success is often measured by the number of people who redeem a coupon, respond to a mail offer, or log on to a Web site. In the equally competitive world of collections, also known as accounts receivable management, it is the rate of recovery – the dollar value of debts collected – that measures the success of a campaign and a company.

Credit Bureau of Canada Collections (CBCC), a nationally licensed, third-party accounts receivable management solutions firm, understands the importance of return on investment. Headquartered in Mississauga, CBCC handles collections for clients throughout Canada, ranging from small offices and home offices to the country’s largest Schedule A banks. “Since 1947, our company has been focused on achieving the highest possible rate of recovery for our clients,” explains Tony Pampena, vice president of Operations. That focus has allowed CBCC to grow to a firm of 139 employees operating from two collection centers.

CBCC focuses not only on recovery rates but also on outstanding customer service. “There are plenty of collection agencies in Canada, and we want to distinguish ourselves by maintaining the most responsive customer service in the industry,” Pampena explains. “That service extends not only to the organizations we represent but also to the people we’re contacting on their behalf. After all, circumstances change and today’s past due account could be tomorrow’s customer.”

Investing in people and technology
To maximize recovery rates while maintaining customer service, CBCC has invested heavily into two areas: people and technology. New staff members are subject to a rigorous training regimen, including standardized testing. The right people need the right tools to succeed, and to that end, CBCC employs state-of-the-art technology. “When you’re trying to recover past due payments, contacting the holder of the delinquent account is obviously the first step,” notes Pampena. “The more people you can contact, the more payments you are likely to receive. There are products designed to make it easier for companies like ours to reach people by phone.”

One such product is Global Connect, a voice messaging system that helps CBCC contact account holders quickly and easily. The messaging system uses Voice over Internet Protocol (VoIP), a technology that converts voice into a digital signal that travels over the Internet. This capability enables client companies to record a message and send it to a large database of telephone numbers virtually instantaneously. In turn, call recipients can use the interactive keypad to connect to live agents, leave voice messages or select other keys for polling and surveys.

“Once VoIP technology became available, a number of systems sprang up right away and we’ve worked with a few of them in the past,” notes Pampena. “Then Bob Myers, (executive vice president of Global Connect) approached us and offered a free trial of the system. We were impressed with the company’s 24-hour customer support and service philosophy, which mirrored our own commitment to service.”

Global Connect is a leading provider of Web-based voice messaging that delivers personalized voice messages quickly and cost-effectively on behalf of its clients in a variety of industries throughout Canada, the U.S. and Puerto Rico.

Twenty-four hours after Myers’ presentation, CBCC uploaded its database to Global Connect’s secure Web site and began launching its first set of calls. “We can easily record a message over the phone so we can create one message for accounts that are 30 days overdue, one for 60 days, and so on,” explains Pampena. “Then we indicate to the system which account holders to call and just click to start the phone calls.”

When an account holder receives a telephone call from CBCC, he or she hears the pre-recorded message and is given the opportunity to “link back” to speak to one of the company’s representatives by pressing a particular key on the telephone keypad. That CBCC representative, who has instantaneous access to information about the account, can accept a payment or discuss payment arrangements with the individual. “Anywhere from five percent to 24 percent of the people we call will press the button to link back to our collector,” says Pampena. “Since they are taking the initiative to talk to us, they are much more likely to send a payment.”

DNC compliance
As a result of this country’s recent “Do Not Call” legislation, there are some telephone numbers that Credit Bureau of Canada Collections’ clients are not permitted to call. The ability to comply with this and other Canadian regulations was an extremely important consideration in the selection of a voice messaging vendor. “Using the system, we can easily ‘scrub’ numbers whether they are no longer accurate, appear on the ‘Do Not Call’ list, or are restricted in some other way,” stresses Pampena. “That ability to remove telephone numbers, as well as the fact that all of our calls are launched within Canada through Global Connect’s Canadian data center, helps us comply with any and all call regulations.”

CBCC found the voice messaging system to be an effective way to reach contacts and increase recovery rates, and the company now conducts daily campaigns as part of a predetermined calling timetable. “With Global Connect, our employees are able to work much more efficiently, and we’re able to reach more of our clients’ contacts. In fact, our contact rates have increased by as much as 50 percent,” Pampena emphasizes. “More people called means more debts collected, and of course, rate of recovery is the ultimate measure of our success.”