Online retail is booming and conquering more areas where online shoppers can buy products and services in comfort via the internet. Both optimised processes and secure data transfer and widespread distribution of communications devices with mobile internet access have contributed to this trend. As well as specialist internet retails, more traditional companies are increasingly operating online shops in order to acquire additional customers via this additional channel. But they all face the following dilemma: Anonymity makes it easier for online shoppers to fill up shopping baskets and not pay for them, while the pressure of competition and high expectations from the consumer force online retailers to offer payment options in their online shop with high levels of default risk. PAIR Finance has the solution, an automated, digital receivables management system.
Unpaid bills are a problem for every company. If liquidity is reduced, this has a gradual impact on the viability of the business. Unlike traditional retail, where the customers are known to the retailers and can be sanctioned accordingly, the operators of online shops face an additional problem. If they want to survive amid increasingly tough competition, they need to offer user-friendly payment options and take on the associated, sometimes massive risks. These include a guest checkout, where an online purchase can be made without detailed registration and provision of personal data, and this contemporary checkout process goes hand in hand with various risks. The purchaser remains largely anonymous, and tracking them for debt recovery purposes requires additional work and, above all, know-how.
This means that professional debt collection which is tailored to individual needs is, especially for online retailers, an effective means of protecting themselves from payment defaults which could threaten their very existence. PAIR Finance uses technologies like machine learning and behavioural economics approaches in order to practice a contemporary form of debtor management. The main aim is to maintain customer relationships, even when short-term financial issues make it difficult to pay bills on time. Finding the right approach here and developing suitable compromises into workable solutions is in the interests of all parties and guarantees long-term success. Transparency is a key factor, which is exactly where PAIR Finance comes in.
The reasons why bills go unpaid are varied, and communication with the customers should be just as individual. This is one of the reasons for the high success rate that professional debt collection can achieve for online retailers. Experience shows that standard letters threatening tough sanctions often miss the mark. Recipients are often so intimidated that they do not even open the letters, which destroys the prospect of an agreement from the outset. PAIR Finance not only uses different communications channels to get in touch with customers, but also uses a tone which is adapted to the specific debtor. This has a number of effects: On the one hand, the digital channels reduce the distances and processing times, and on the other hand, the defaulting customers are approached based on their individual sensitivities.
This innovative approach, which is radically different to the confrontational methods of traditional debt collection companies, is recommended by PAIR Finance for digital retailers of all sizes, irrespective of the sector they work in. The automated, efficient processes developed with the help of state-of-the-art technologies are also suitable for supporting digital companies and payment service providers. We can also provide optimum support for debt collection companies wanting to automate and professionalise their processes. The benefits are clear: With a specialist debt collection system for online retailers, PAIR Finance ensures considerably increased transparency and also improved liquidity. Above all, defaulting customers are not frightened off and thrown out, instead the are accompanied every step of the way in order to establish a long-lasting, successful relationship.