However, what we sometimes lose sight of, is that some of these numbers are people. Real people with hopes, fears and challenges that we can help with.

Let’s meet Carol. She is a 38-year-old married mum of two who lives in the Midlands and has worked for a number of years as a supervisor at a local office. She’s been there some time and is well paid for her work. She has two kids in school and her husband works at the local food factory. Carol and her family have lived in their house for a little over 10 years and everyone is settled and happy.

Doing the weekly shop, Carol notices that the price has started to go up. Her gas and electric monthly payments have increased by 50% a month and her petrol bills have also increased. They continue to make ends meet, even with the prices rising until one day disaster happens.

Carol’s husband, Mike, is made redundant from his job. As he’s been there 4 years, he receives a pay-out, but it won’t last too long. Unfortunately, Carol earns too much to be eligible for any additional support from the Government.

Carol is now in a place she’s never been in. Worried about paying the bills, Mike’s looking for work and the kids are wanting to go on holiday.

Whilst this is an example, it’s all too frequently happening to our consumers, customers and neighbours. As leaders, policy setters and influential people, we need to be asking ourselves, are we doing enough for the Carols and Mikes?

If Mike or Carol reach out, do we have the right training and support for our customer service people to ask the right questions and provide the right advice and assistance? Do we, or should we, have dedicated teams who are trained to handle those more detailed conversations when they are needed?

Does our website or app provide clear direction and signposting for the customers’ options? Are we making it as easy as possible for Carol or Mike to engage with us, in what is, in their eyes, a scary and embarrassing conversation?

If Mike or Carol aren’t engaging with us, are we going above and beyond to promote engagement and support, or are we blindly following the same old process?

We all have business pressures on costs, budgets and forecasts. By assessing and reviewing what you have, re-purposing existing spends and revising how and what you do, you can be surprised at how much you can support Carol, sometimes at no or very little cost.

Ultimately, what we would all like is for Carol and Mike to have support and an agreed upon plan, at a future date, when Mike is back in work and things are moving in the right direction.

We all recognise putting things off until the new year. Going to the gym, looking for a new job and paying bills. December is often a month where the bills are deferred and money is spent on Christmas. Most companies will struggle to collect money in December and often in January too. A number of consumers will be suffering a financial hangover in January, with some going further into debt in order to buy the associated treats and goodies. The gap between an early December pay day and January pay day can feel like months rather than weeks. Don’t be surprised if people don’t have the money to pay and will again be in defer mode.

With ever increasing rise in costs for businesses, writing off the money isn’t a palatable option. However, going in strong is not the best way to engage. People need help now more than ever. For a number of people being in debt will be a new experience, for a number of reasons. Therefore, getting prepared early with your Q1 strategy is a must.

As providers, we are now also more aware of the mental impacts owing money has on a person. That coupled with “January Blues” can be a potent recipe. Be proud of the support you offer to consumers. Some industries shun being public about how they work with and support their customers who are in financial distress. It’s felt to be a poor public image to even acknowledge that there is debt and that you have a team of people who are dedicated to manage it. Don’t be shy, you should be proud that you work so hard putting measures and teams in place who are ready to help engage and work through financial challenges with your customers.

Definitely make sure it is front and centre on your communications platforms at this time of year. Website, apps, call holding messages, emails, letters, texts and even carrier pigeon if that’s your bag. Make is easy for people to find, use and engage with. The content should be clearly written and the tone used is very important here.

A new year will often mean customers feel that they are starting again. Part of your strategy needs to be a refresher of where things were left at the end of 2022 and where we go next. This can be useful as a scene setter, but also useful as a reminder that the money is still due and that you are there to support and talk to people if they need it. It also works as a reminder for any “won’t pays” that you haven’t forgotten them and you won’t be going away anytime soon.

Therefore, the communications and handling for January needs to be a little bit “Christmas Carol” based. What does the past, present and the future hold?

Why not go one further and offer a new year’s incentive? We know the gym does it, so why don’t you? Discounts for paying off quicker, reduction of debt owed on settlements, or anything else that you feel could work for your business.

Whilst it’s a good thing to raise awareness it can also create a level of concern and chaos which can drive differing behaviours by our clients, consumers and colleagues. Now, more than ever, it’s key that we spend some time reviewing where we are, all of us.

Ever-increasing demands on spending coupled with a real-time reduction in incoming salaries have brought into sharp focus a pivotal economic landscape. Our frontline colleagues will be having a number of very distressing conversations whilst personally experiencing financial challenges. Can we do more to help them have these conversations?

How close are we to how our consumers are feeling? Have we evolved our processes? What our consumers or even regulators may have deemed acceptable in the past has in all likelihood changed.

Collections, debt, financial risk and financial vulnerabilities have always been difficult waters to sail for consumers and providers alike. A level of sensitivity and pragmatism is needed across all areas. No longer should people be using a broad-brush stroke approach in their business strategy for non-payment. A number of new consumers, who may have never experienced being in arrears or at financial risk, will now fall into a number of your processes.

Existing customers in financial distress, who had previously found a balance in how they manage their money may well have had their stability upset further by the demands on their budgets.

There are two sides to every coin. How do you balance off the support offered to customers and the business commercials? Undoubtedly customers need financial help, more time, cost reductions, more support and payment options and in bigger numbers than seen before. Ethically you must ensure that you are doing all you can to support your consumers and colleagues through this difficult time.

Focusing on consumers means analysing regular quantitative and qualitative data. Debt and money are a very emotive subject and not all consumers will be willing or able to discuss them in focus groups. However, take the opportunity to regular listen, read and see how your customers are feeling. Analyse your key metrics, your customer target quality, reviewing any compliance or regulatory change, processes, agent feedback and social threads.

Providing tools, new business policies, third-party charity support and tailored process solutions for both internal customers and external users is critical. The demands on people will be huge.
If doing this isn’t top of your business roadmap, then it definitely should be as this isn’t going to be a one hit wonder and won’t be going away any time in the short term.

If you need help balancing debt recovery with customer and colleague support, we can help. Get in touch.