New White Paper examines Behavioral Science for Consumer Decision Making

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For industries like Collections, new technologies such as speech analytics offer an easy method for utilizing call data for improving agent performance and consumer relations. Now those same technologies are being used in conjunction with behavioral science techniques to get to the root of consumer decision making. This paper explores some of the basic strategies being exploited by agencies today to increase payment activity and improve ROI.

Here’s an excerpt:

Decision Paralysis

Behavioral science can be employed to prevent or move consumers through a state of inaction, referred to as decision paralysis.  This occurs when the contributing factors of an individual consumer add up, overwhelming them and ultimately preventing them from committing or taking any action whatsoever.  Triggers for inaction can be as simple as a lack of financial resources or as complex as a catastrophic life event distracting the consumer from other priorities or obligations.  Regardless of the trigger, by utilizing a basic understanding of consumer behavior, decision paralysis can be combatted with strategies that touch on the core psychological cause; attitude, motivation, and perception.

Attitude

The consumer’s attitude towards the debt or collection agencies can contribute to their inaction.  Younger demographics may have a more lackadaisical attitude towards an account in collections because they believe they have “plenty of time” to remedy the problem and are not yet fixated on the future consequences.  Some consumers may have adopted negative attitudes towards collections agencies in general, frozen in action simply based upon the idea that collectors are intimidating or manipulative.  Or perhaps there is an attitude problem with concerns about their own ability to choose the correct course of action, and they simply lack the confidence to commit.  Analysis results can help identify these attitudes so agents can respond in turn.

To keep reading download the white paper FREE with the link below:

“Why Consumers say ‘no’ -Behavioral Science for increasing Collection Rates”

Media Contact:
Gerald Jonathan
541.335.2283
gerald.jonathan@kghawes.com