INSIGHTS+ ¦ Reciprocity Principle – in Collections [Behavioural Series]

The reciprocity principle is a fundamental social rule that suggests individuals are more likely to return favours when they receive kindness. In the context of collections, this principle can be leveraged to improve debtor engagement and recovery rates. By demonstrating understanding and offering flexible solutions, creditors can foster goodwill, which may encourage debtors to meet their obligations more readily. This article explores the application of the reciprocity principle within a collections function, examining its importance, key considerations, and the anticipated benefits.
Why Reciprocity Principle in Collections?
The collections environment often involves sensitive interactions, as it deals with individuals facing financial distress. Implementing the reciprocity principle can transform these interactions from adversarial to collaborative. By approaching debtors with empathy and offering assistance, creditors can build trust and encourage repayment. This principle aligns wi...

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