While it’d be the best outcome for us at Peregrin, we understand that not all of you reading this blog will sign up with us. But, that’s alright, because we get that not everyone has the resources or time to focus on this area immediately and take action. In the meantime though, there are some fairly simple, cost-effective ways to improve the performance of your debt management plan (DMP). Read on for three easy-to-implement tips that won’t cost you a dime but will definitely get you the results you’re looking for!
Offer solid referrals
Unlock the power of trust by recommending reputable credit counseling agencies to your borrowers. This is a simple and straightforward way to boost your debt management plan results, and will lead to improved outcomes such as:
Higher enrollments (vs charge offs): When customers receive a referral from their own bank, it acts as a major vote of confidence. They’re much more likely to enroll in a DMP recommended by a financial institution they trust, as opposed to an agency they choose off the internet (known as “Open Market” leads) that may ask them for their account information, social security number, and even the login details to their bank accounts! To be a little more specific, well-targeted referrals will enroll at rates up to 30% of inquiries, versus as low as 5-9% of open market inquiries.
Longer retention: Referred accounts are more likely to have longer retention in the program. By taking up the referral, these customers have already expressed their willingness to work on their debt issues in a structured and disciplined manner with a recommended agency..
Bottom line? Don’t underestimate the power of a strategic recommendation!
Boost engagement with credit counseling agencies
This step is crucial to optimizing your DMP performance – here’s how to go about it:
Make contact. This takes a little bit of courage. Pick out your top ten agencies based on the number of proposals you receive in any given month. Identify their Executive Directors or CEOs. Now, call them (or us, we can help!), introduce yourself, demonstrate your interest in partnering to improve DMP results, and propose regular meetings to discuss your accounts and portfolio.
This is the way to forge effective collaborations. By establishing a clear and direct line of communication with key stakeholders in these agencies, you can streamline processes and facilitate better results for everyone involved.
Sure, it takes a little bit of time and effort – but it’s worth it because these steps truly go a long way when it comes to enhancing your DMP performance. Besides, your higher-ups may even reward you with trips to snazzy industry conferences when they notice your hard work and the significant savings you’ve helped achieve!
Minimize process friction
Simple, frictionless processes are essential to an efficient debt management program. Here are a few tips around how you can streamline your process.
Dedicated support: Set up a dedicated phone line for agencies to call and get balance inquiries and statuses. Publish that to the agencies. By offering easy and quick access to information, you can enhance communication and optimize decision-making.
Collaborate with industry organizations: Reach out to industry bodies such as the NFCC and FCAA and request that they disseminate your contact information, payment addresses, and program policies to their member agencies. A proactive approach like this one can help increase visibility and foster better interactions with partner organizations.
Improve decision making: Assess the speed and efficiency of your decision-making process to explore and identify opportunities for automation. When you leverage technology to automate repetitive tasks and refine your workflows, you can speed up approvals, reassure your customers, and stop them from looking for other solutions elsewhere.
Now, here’s a bonus tip – go the extra mile to welcome borrowers to your debt management program. Congratulate them on taking this brave, proactive step towards financial freedom and security. Go beyond the usual terms and conditions, and the “we’re closing your account” acknowledgement letter, to show them that you are truly rooting for their success. Also, be sure your agency is doing the same!
Such a personalized touch can make a huge difference and reinforce your commitment to their success.
In conclusion, improving your debt management plan performance doesn’t have to be complicated or heavy on your pocket. These simple, impactful, and easy-to-implement strategies can help to unleash the full potential of your debt management efforts. A little bit of time and effort can pay off with substantially higher returns!
So, don’t wait a second longer – let’s take your DMP game to the next level and forge a path towards financial freedom and success!