Outbound Calling
Doesn’t Work,
Here’s What Does
History of the
Call Center
But don’t say a final farewell to the call
center completely just yet.
First, let’s look at the difference between outbound calling and inbound servicing
OUTBOUND
Call center agents dial out directly to consumers
VS.
INBOUND
Call center agents answer incoming calls made by customers
Source: Everest Group (2020); McKinsey & Co
The outlook for outbound calling is quite dim, especially when we look at outbound calling to collect on delinquent accounts (see pie chart)
It’s not all doom and gloom. There is a light at the end of the outbound tunnel – inbound servicing and digital communications can turn recovery operations around (and we’ll show you how).
It’s not all doom and gloom. There is a light at the end of the outbound tunnel – inbound servicing and digital communications can turn recovery operations around (and we’ll show you how).
Nails in the Outbound Calling Coffin
So what ARE the nails in the coffin for this classic business tactic in 2022?
Ready to skip ahead & see how?
Labor Shortage &
Wage Inflation
Let’s start with today’s labor market…
Technology isn’t pushing people out. People don’t want outbound calling jobs.
In the wake of the Great Resignation, it’s never been harder or more expensive to hire—and hang onto—outbound call center employees.
Growth of average number of job openings in call, contact and customer care centers advertised on ZipRecruiter.com
30-40%
Average US call centers turnover rate
40%
of those who quit take at least one coworker with them
$5,000 - $7,000
Typical cost to hire and onboard one new employee
While there’s no miracle cure for the labor shortage, digital solutions help offset the empty chairs and make the occupied chairs more productive, too.
But speaking of costly things contributing to the death of outbound calling
as we know it…
Call center wages have increased by 15%+ since the pandemic began, an astounding spike even when every industry is riding the wave of wage inflation.
But tackling the labor shortage and wage inflation are easier than you might expect…
Ready to skip ahead & see how?
Shifting from outbound calling to an inbound strategy leveraging digital communication methods to reach consumers resolves many of these current issues.
Outbound calling agents have a higher attrition rate on average compared to inbound agents
Cut down on the time billed for making repeated outbound calls that are never answered or returned
Inbound agents can handle more accounts because their time is concentrated with consumers who want to talk
Digital collection practices can reduce seasonal hiring and training of outbound call center staff
more accounts for less total cost.
Regulations & Customer Expectations
Now let’s look at regulatory compliance and consumer behavior…
Again, technology isn’t the downfall of outbound call-and-collect, but instead human nature itself.
The list of rules and regulations for outbound calling grows every year, especially for debt recovery and collection.
Now let’s look at regulatory compliance and consumer behavior…
Again, technology isn’t the downfall of outbound call-and-collect, but instead human nature itself.
Outbound dialers must know and follow all these rules before they can start talking about recovering delinquent accounts …that is if anyone even answers their call.
What are all the debt recovery & collection regulations?
consumer behavior has changed
What Customers Expect
54%
personalized customer support
52%
creative approaches to customer service
46%
reachable through preferred channels
So how can you actually connect with your customers? Luckily, that’s actually quite simple too.
Ready to skip ahead & get started?
What’s Next
for Call Centers?
Outbound to Inbound: A Second Chance for Call Centers
Integrating technology reduces the strain on hiring the right people and makes it easy to communicate with consumers in their preferred ways—turning the outbound calling strategy into a more engaged inbound contact model.
Earlier, we looked at the dismal effectiveness rate for phone calls collecting debts due for more than 30 days, but take a look at an integrated inbound approach using multiple channels to interact with consumers.
Source: Everest Group (2020); McKinsey & Co (2020)
3 Ways an Inbound Call Center Breathes Life into Recovery & Collection Strategies
So you see, call centers aren’t dying, they’re evolving. Partners like TrueAccord can help humanize the debt recovery process without adding more humans into the equation.
