WhatsApp Business is excelling at AI and Automation for customer conversations around debt collection
Customer conversations in debt collection and finance tend to be sensitive, uncomfortable and often unsuccessful. Over and above the blunt numbers involved, there is a sea of personal anxiety that stretches beyond the debt itself to touch families and homes.
To tackle these pressing problems, businesses are turning to innovative technology to make customer interactions as painless and helpful as possible for those in debt, while also providing an effective service to businesses.
Now, we have seen that WhatsApp Business, equipped with AI chatbots and advanced automation features, is helping businesses handle these delicate customer interactions.
The Shift to Messaging Apps
Traditional phone conversations are becoming less popular. Studies have found that a significant number of people experience phone anxiety, leading them to avoid phone calls altogether. This is especially true for GenZ, where a
Sky Mobile Survey found 26% will ignore phone calls. An Open Market study found that
75% of Millennials prefer to text than phone, with
81% feeling outright anxious when making a phone call.
In response, companies are pivoting to digital channels like WhatsApp, which boasts a staggering adoption rate of 84% in the UK and is the most popular messaging app in 100 countries.
However, this shift is about more than just following trends; it is about meeting customers where they feel most at ease.
Why WhatsApp + Conversational AI is Successful
WhatsApp’s appeal lies in its simplicity and widespread familiarity. With the Business API, larger organisations can manage high messaging volumes and automate interactions without losing the personal touch that is critical in debt conversations. With the Business API, larger organisations can manage high messaging volumes and automate interactions without losing the personal touch that is critical in debt conversations.
Features like automated messages, conversational AI chatbots, and integration with other applications make WhatsApp an ideal platform for managing customer interactions efficiently.
WhatsApp Business API can be used for both inbound and outbound messaging and can be highly effective at sending personalised messages at scale. The combination of AI-driven chatbots and live agents ensures that while most routine enquiries are handled swiftly by bots, more complex or sensitive issues can be escalated to human agents.
Business Efficiency Increases with WhatsApp
In our experience, from a business perspective, WhatsApp Business API is a cost-effective solution. It reduces the time and resources spent on each customer interaction, which in turn lowers operational costs.
Webio clients have found that WhatsApp works for them. Faster resolution times are a big selling point, with a 30%-40% reduction when switching to WhatsApp. This also means that the business is sending fewer messages, with better delivery rates (95%+) and higher engagement rates (78%-90%), which translates to doing more with fewer resources.
Customer Preference and Satisfaction
Customers, on the other hand, benefit from the convenience and efficiency of messaging. They can initiate conversations, enjoy reduced response times, and manage their financial obligations without the time and hassle of phoning.
One of the key reasons customers love using messaging apps like WhatsApp is the lack of intrusion compared to phone calls. The nature of messaging allows them to respond at their own pace, making the conversation less daunting. This has shown to improve customer satisfaction levels significantly, as evidenced by an 18% increase in Net Promoter Scores with WhatsApp.
Additionally, WhatsApp's rich media capabilities enrich customer interactions and make it easier for customers to provide information quickly and securely, for example, by uploading an image of a passport for ID&V or even sending a voice note.
Agents Welcome WhatsApp as a Working Partner
For agents, the use of AI and automation reduces the mundane aspects of their job, allowing them to focus on cases that require human empathy and judgement. This not only makes their work more fulfilling but also reduces burnout and agent turnover.
For example, one of Webio’s clients, a debt collection agency, now only needs 3-4 agents working with a WhatsApp chatbot for every 10-15 agents they needed before introducing the messaging app.
And notably, automation levels can go well beyond 75%, greatly reducing the load on agents. Furthermore, the WhatsApp bot can handle customer conversations after hours, making it a 24/7 ‘employee’.
WhatsApp is Challenging SMS for Customer Engagement Supremacy
WhatsApp is taking ground from SMS for customer communications. Besides being a popular app for personal use, WhatsApp is a ‘low noise’ platform with little spam, which leads to higher open rates. It also offers better rich media support than SMS, including voice messages.
The security features of WhatsApp give customers peace of mind, knowing they can trust a message that has been sent from a WhatsApp approved company. WhatsApp provides 256bit, two-way security whereas SMS has no encryption.
The integration of WhatsApp Business API into debt collection processes marks a significant shift in how businesses engage with their customers regarding debt and finances. By employing AI and automation alongside live agents, businesses can handle difficult conversations more effectively, making the process less awkward for customers and more efficient for the business. This strategic approach not only enhances customer satisfaction but also drives operational efficiencies, making it a win-win for all parties involved.
WhatsApp has proven itself with our clients over the past two years to be incredibly effective and efficient; some of the metrics our clients have seen are double the engagement rate compared to SMS, increased overall collections and huge levels of call deflection, reducing abandoned calls. WhatsApp makes it easy for customers to engage with you, so don’t be surprised when they use it over and over.
