Modernizing processes and operations for collections teams with limited IT resources can be a real challenge. Companies may be afraid to overhaul their current legacy systems as they’re worried a new one may require considerable internal resources and a long time to implement. They’re not willing to sacrifice short-term convenience for long-term gains in some cases. This persistence with maintaining inefficient legacy systems only serves up disappointing dunning experiences that produce subpar results.
However, collections teams that embrace change gladly implement innovative solutions to update the way they do collections and improve recovery efficiency and effectiveness. They unlock more significant results with ease, providing a genuine competitive advantage and enhancing the experience of past-due customers.
There are different ways to drive more value and innovation that require low commitment from the IT team. Consider digitizing strategically by choosing cloud-based software.
Digitize strategically: Choose a cloud-based SaaS solution
Digitizing collections is inevitable. Without it, the process can be tedious and unproductive. For collections teams with no IT resources to help them develop the necessary infrastructure on-premise, acquiring a cloud-based SaaS solution from a third-party provider is a great way to digitize cost-effectively. In many cases, it requires little to no commitment from the IT department.
SaaS (or software as a service) refers to the on-demand supply of IT resources online via a subscription or a pay-as-you-go model. It is a cost-effective way to improve speed and efficiency in collections when IT resources are nonexistent. This option usually offers live support and doesn’t require engineering staff to develop as well as manage all updates and upgrades. There are already amazing digital collection tools to choose from. Conduct thorough due diligence on any provider you’re considering. You want the option that is the right fit for your company and customers.
For example, implementing a self-service platform to enable past-due customers to self-cure is a great way to get started without having to commit to more complex infrastructures. It is helpful, especially for first-stage collections and to target lower-risk accounts. The resulting data can then be analyzed and used to optimize the overall collection strategy.
Buy a cloud-based SaaS solution to transition your in-house collections to a seamless and efficient process when lacking IT resources. The following are three main advantages of SaaS:
- SaaS is quick to deploy
- SaaS offers on-demand scalability
- SaaS has no maintenance costs
SaaS is quick and easy to deploy
Deploying SaaS is an incomparably fast and easy process because the provider already worked on all the required infrastructure to make it work for you. Since they take care of most integrations at the implementation phase, your IT team is only required for review and approvals.
Forrester (2011) reported that SaaS solutions take, on average, six to nine months compared with nine to 18 months for on-premise. Often, SaaS can even take less time to launch. For instance, the average deployment time is 60 to 90 days with Lexop. Ultimately, time to deployment depends on how long your company takes to conduct all pertaining review and validation activities. Large companies have more intricate processes that involve different departments, leading to longer delays. Providers already certified (SOC2, ISO …) will facilitate a more rapid validation process.
SaaS offers on-demand scalability
Since SaaS inherently provides an on-demand service tailored to your needs,scaling is simple. Whether you have a higher volume of past-due accounts, need access to new features, or integrate the collection software into your CRM system, your service provider is well positioned to help you at your own pace. An implementation and support specialist is likely to hold your hand throughout the entire customer journey, ensuring that you're getting the most out of the product—and your money's worth.
Again, no real investment from your IT department will be necessary since the provider is there to take care of your needs.
SaaS has no maintenance costs
Let's be honest, on-premise data servers require uninterrupted power, complex environmental controls, continuous maintenance, and never-ending updates. Those are enough reasons for many companies to not want to pursue digitization. Thankfully with SaaS, the provider takes care of all this. You can keep up with the rapid evolution of preferred payment methods in collections without being the one handling overly complicated, time-consuming, and expensive internal digital transformation projects.
Since you’re not the only one using the software, you can rest assured that your provider will fix any issues and keep you informed of any changes.
The takeaway
Collections departments need to put themselves in the best possible position to adapt to the digital transformation and be in sync with the latest consumer trends. Implementing a cloud-based SaaS solution can make their entire department as agile as possible without IT resources. They will be able to access vital data-driven insights into how consumers are behaving—and will be able to adapt their collections approach accordingly without having to break the bank.
Investing in the right cloud-first collection software can solidify your competitive advantage strategically. Lexop provides an inexpensive digital-first collection solution that's easy to implement, so you won't have to worry about IT expenses. We take care of all the maintenance, message templates, and even handle the integration process of the payment gateway of your choice. With Lexop, companies can customize a ready-to-go, white-label solution with their branding and enable past-due customers to self-serve in a secure environment. You can relax while delivering a superior customer experience that drives engagement, results, and ultimately retention.
If you’d like advice from our experts, feel free to talk to us.
