Tuesday, March 3, 2015, PM | 2 Comments
Consolidating your debt is a kind of debt refinancing that involves taking out a new loan for paying off many existing loans. This is primarily a personal finance process adopted by those individuals who need to address high consumer debt issues.
Sometimes the overall debt may take such a bad shape that the debtor can face bankruptcy, insolvency or some other grave financial emergency.
Consolidating the debts seems to be the best recourse at this juncture. Once you consolidate your multiple debts into one single debt, you tend to achieve a relatively lower overall interest rate.
Thanks to this process your loans are restructured and you can now manage your debts better, as you need to take care of only one single loan now. You would now tend to enjoy a lesser monthly payment, reduced outstanding amount, or lower rate of interest or an extended period of loan repayment.
Companies that Help
Debt consolidation companies allow you to settle all your previous debts by taking a fresh new loan from them.
This way you do not owe any money to any of your previous creditors. Instead you are now obligated towards the company and you now owe an amount equal to the sum total of all your previous debts.
You need to make monthly payments to the company. This payment would take care of principal, interest and fees of the loan.
Some Specific Customer Retention Strategies
Instead of ruining business relationships it is better for creditors to opt for amicable settlement with the debtors by negotiating through a third party like the debt-consolidating firm.
Reducing attrition is the best policy. The company may act as an arbitrator and try finding an amicable solution.
All customer retention techniques are geared toward retaining the clients who had a previous successful interaction and relationship with the company.
Successful debt relief customers would gladly be there with the company as they helped the distressed candidates during bad times.
The aim is to bring back those clients who have been able to repair their debt status once before.
The creditors think it is wise not to spend a lot on new customer acquisition, instead they stick to clients who have managed their debts successfully once before.
The creditors would try and find the grievances of debtors and make amendments to fix the issues. This works as an effective customer retention strategy.
They try to gather feedbacks and customer complaints and then work on resolving the issues. They would try to modify their business practices to acquire new clients and retain existing ones.
Some General Customer Retention Techniques
There are many ways of retaining customers. Companies should try to improve their services to attract and generate new clients.
Customer Experience Should be the Focus
It is important to take into consideration the debtor’s experience with the company. Was he satisfied with the services? Customers or debtors have many choices and are quite frugal.
The customers are becoming more and more demanding as they have a plenty of options in today’s competitive world.
The company needs to offer a holistic experience to the new generation empowered customers, to satisfy them.
They need to develop infrastructure that ensures smart communication, transparency and knowledge sharing.
Strategies such as loyalty programs, content creation and gratification will be playing a vital role in building customer experience, along with initiatives that foster holistic experience.
Customization and Personalization Key to Consumer Retention
In order to be effective in the currently hi-tech era, companies will be striving to learn more facts about the customer and use the knowledge to engage and interact with the customer more frequently and more meaningfully.
Websites prove to be fruitful if they are more social, personal and motivational. Thanks to the mobile devices, companies are able to know about customer habits and are able to generate more proactive services.
Quality over Speed
When it comes to customer retention, research reveals that qualities matters much more than speed. Customers are likely to come back if they found the services are efficient and helpful rather than just speedy.