Behavioral Economics teaches us the psychological, social and cognitive reasons for people and companies' financial decisions. Ever wondered why one customer is late on a payment, while the other isn't? Ever asked yourself why certain phrases and words work with one late customer, but not with the other? This webinar will teach you all of that and more. Learn about: - Why some people pay late, and why they stay late even after reminder. - Common cognitive mechanisms that drive customers' decisions regarding debt, and how to tap into them. - Words and phrases that tap into customer objections and diffuse them. Our experts will lead you through a few use cases and explain how our system identified and responded to customer triggers. You'll be able to easily implement these lessons in your own A/R process and increase your recovery rates. This webinar is ideal for Accounts Receivable Specialists and Billing Managers who are looking to fine tune their internal recovery process.

1. Behavioral Economics
in Debt Collection
September 2014
TrueAccord

2. Agenda TrueAccord
• TrueAccord overview (3min)
• Behavioral Economics, and
its relevancy to collection (5min)
• Common customer types
and how to handle them (20min)
• Summary (2min)

3. About TrueAccord TrueAccord
Reinvent the way debt collection is done
• Technology reduces friction
• Adapts to the digital consumer’s
preferences
• Data enables extreme personalization
• Preserves customer relationships
• Used by leading tech and lending companies

4. What Customers Are Saying TrueAccord
“[This] has to be the funniest bill collection I have ever had and it actually
made me want to pay.”
- Mike M.
“Nice Service, good payment plans.”
- Krystal V.
“Well, my company owes money, so we can’t exactly say “Rocks!”. But your
service is excellent and you have been very accommodating. Your website is
simply to navigate and you make it very easy to make payments.”
- Elliot F.
“You guys are doing it so well, that I would love to talk to you guys about my
other debts.”
- Tomas C.

5. What is Behavioral Economics? TrueAccord
Behavioral economics is a field that examines the
way individuals make economic decisions, and the
factors that influence those decisions.
• Do we make rational decisions?
• Can our decision process be manipulated?
• What drives our decision-making?

6. Why Behavioral Economics in Collections? TrueAccord
• Takes the voodoo out of agent driven
conversion
• Broadens your toolset and improves
conversion
• Cooperation improves retention and LTV

7. Common Customer Types TrueAccord
Many of your customers choose not to pay
for reasons unrelated to their personal
morality.
Our detection and classification of the following profiles are proprietary.

8. The Frustrated Customer TrueAccord
The frustrated customer has
had a negative experience
with your product.
• Feels cheated by the fine
print
• Struggles with a difficult
dispute process
• Had a bad service
experience

9. The Frustrated Customer TrueAccord
Solution: Give them a stage and an outlet
for their frustration, then invoke reciprocity.
• Allow them to vent
• Leverage the debt dispute process
• 3rd party involvement helps reframe their
bad experience

10. The Price Sensitive Customer TrueAccord
The price sensitive customer
is looking to get the most
value for the lowest payment.
• Often driven by some
dissatisfaction
• Definitely not your best
customer
• Thinks rationally about
value, but can pay

11. The Price Sensitive Customer TrueAccord
Solution: Create scarcity and a sense of
urgency.
• Anchoring in settlement negotiations
• Explicitly reducing discounts

12. The Defeated Customer TrueAccord
The defeated
customer has real
financial difficulties.
• Often on the brink of
bankruptcy, owes
money to 4-5
creditors
• Manages by
excuses

13. The Defeated Customer TrueAccord
Solution: Personify the obligation to create
a sense of commitment.
• Use gender and age matching names
and photos of agents
• Sports metaphors especially effective in
the US
• Use a “coach” voice to drive to action

14. The Disengaged Customer TrueAccord
The disengaged
customer feels that
disregarding the
problem will make it go
away.
• Often is young and
overwhelmed
• Might be able to pay,
but doesn’t think it’s a
priority

15. The Disengaged Customer TrueAccord
Solution: appeal to their need of social
acceptance.
• Discuss what others like them are doing
• Emphasize the social status in being up
to date on commitments
• Call them out as outliers

16. To summarize… TrueAccord
• Behavioral economics allows better
segmentation and treatment
• A scientific approach helps demystify
agent interaction
• We looked at several types and
suggested responses based on
TrueAccord’s experience

17. THANK YOU
For more:
hello@trueaccord.com
TrueAccord
http://www.trueaccord.com/resources