Law Firms Reduce Cost to Collect, Increase Liquidation and Engagement with Retain
Any law firm that has a collections program would benefit from digital customer engagement methods that lower their servicing costs per file while generating more customer engagement, leading to increased revenue potential and earning more placements from clients.
Initial Demand Letters (IDL) or validation notices serve as one of the first steps towards reclaiming owed funds compliantly—but just as the name suggests, IDLs have traditionally been mailed out to recipients through physical letters. Since 71% of today's consumers prefer to conduct financial business digitally, not only are paper letters a costly line item, but sending snail mail doesn’t garner good engagement or repayment outcomes.
Traditional Communication Methods Can’t Compete with Consumers’ Digital Preference
When you take into consideration that contacting first through a customer’s preferred channel can lead to a more than 10% increase in payments and 59.5% of consumers prefer email as their first choice for communication, it is clear that direct mail isn’t just expensive thanks to the price of paper and stamps, but it can also negatively impact repayment rates from late-payers who prefer digital contact.
Fortunately, there is a way to deliver required validation notices to consumers via email and still be fully compliant. But while switching from physical letters to digital notifications can significantly reduce paper and postage costs along with providing a compliant digital “paper trail” for law firms and businesses required to send Initial Demand Letters (IDL) to recover delinquent funds, it’s not as easy as copying the sample model validation notice into an e-mail.