Five ways to help customers during a recession and manage risk

Balancing customer support with business resilience in economic uncertainty

Published: October 20, 2022 Author: Symend Reading time: 8 minutes

Key Takeaways

Proactive customer support during recessions strengthens relationships and reduces risk
Early intervention prevents small payment issues from becoming major delinquencies
Flexible payment solutions help customers stay current while managing cash flow
Data-driven segmentation enables targeted support for those who need it most
Supporting customers through difficulty builds long-term loyalty and value

During economic downturns, businesses face a critical challenge: how to support customers experiencing financial hardship while managing their own risk exposure. The strategies organizations choose during recessions have lasting impacts on both immediate financial performance and long-term customer relationships.

Here are five proven approaches that help customers navigate difficult times while protecting business sustainability.

1. Implement Early Intervention Programs

The most effective time to help customers is before they fall into deep delinquency. Early intervention programs reach out to customers at the first signs of payment difficulty, offering support and solutions before situations escalate.

Why It Works

When customers are only slightly past due, they're more likely to be able to catch up with modest assistance. Their debt burden is smaller, their stress level is lower, and their options are more flexible. Early intervention prevents the downward spiral of accumulating fees, increased anxiety, and relationship deterioration.

How to Implement

Monitor payment patterns for early warning signs beyond just missed due dates
Reach out proactively when changes in payment behavior are detected
Frame initial communications as supportive check-ins rather than collection notices
Offer immediate assistance and flexible options in first contacts
Use preferred communication channels to increase response rates

Early intervention programs typically reduce charge-offs by 20-40% compared to traditional approaches that wait for significant delinquency before taking action.

2. Offer Flexible Payment Arrangements

During recessions, customers' income and expenses become unpredictable. Rigid payment schedules that worked during stable times may become impossible to maintain. Flexible payment options acknowledge this reality while keeping customers engaged and accounts active.

Types of Flexibility

Payment date flexibility: Allow customers to choose payment dates that align with their income cycles
Reduced payment amounts: Temporary agreements for smaller regular payments
Payment plans: Structured arrangements to catch up on past-due amounts over time
Skip payment options: Carefully managed deferrals for customers facing temporary hardship
Settlement options: For accounts where full recovery is unlikely, negotiated partial payments

Managing Risk

Flexibility doesn't mean abandoning sound business practices. Effective flexible payment programs include:

Clear criteria for who qualifies for different arrangements
Documented agreements with specific terms and timelines
Regular monitoring of arrangement performance
Automated systems to track and manage multiple arrangement types
Escalation processes for arrangements that aren't working

3. Leverage Data to Segment and Prioritize

Not all customers need the same level of support during a recession. Data-driven segmentation identifies which customers are most at risk, which are likely to self-resolve, and which require immediate intervention.

Key Segmentation Factors

Payment history and account tenure
Current delinquency stage and trajectory
Previous response to different engagement strategies
Demographic and economic indicators
Communication preferences and engagement patterns
Product holdings and overall customer value

Targeted Strategies

Different customer segments require different approaches:

High-value, temporarily distressed: Proactive outreach with premium support and flexible options
First-time delinquent: Early education and simple self-service payment solutions
Chronic payment issues: Structured plans with closer monitoring and intervention
Likely to self-resolve: Minimal contact with easy payment access
High risk: Immediate engagement with comprehensive support resources

4. Provide Financial Wellness Resources

Sometimes the best way to help customers pay their bills is to help them improve their overall financial situation. Financial wellness resources position your organization as a partner in customers' success rather than just a creditor.

Resource Types

Budgeting tools and templates
Connections to assistance programs and community resources
Financial education content tailored to current economic conditions
Tools for managing irregular income or expenses
Information about credit impacts and how to protect credit scores

Benefits Beyond Payment

Financial wellness programs create multiple value streams:

Improved customer financial capacity leads to better long-term payment performance
Customers view the organization more favorably, increasing loyalty and retention
Differentiation in competitive markets
Positive brand perception and community relationships
Alignment with regulatory trends toward consumer financial protection

5. Enhance Communication with Empathy and Clarity

How you communicate with customers during difficult times matters as much as what you offer. Empathetic, clear communication reduces customer stress, increases engagement, and improves outcomes.

Communication Principles

Acknowledge difficulty: Recognize that economic conditions are challenging for many customers
Focus on solutions: Lead with what you can do to help, not just what customers owe
Simplify choices: Make options clear and decisions easy
Be transparent: Clearly explain terms, consequences, and processes
Show respect: Avoid stigmatizing language or assumptions about customer circumstances
Provide clear next steps: Make it obvious and easy for customers to take action

Channel Optimization

Meet customers where they are:

Offer multiple communication channels (SMS, email, voice, portal, app)
Use customer preference data to select the right channel for each person
Ensure consistency across channels while optimizing for each medium
Make digital self-service options prominent and easy to use
Reserve human contact for customers who most need or prefer it

The Long-Term Value of Recession Support

Organizations that support customers effectively through recessions see benefits that extend far beyond the immediate economic crisis:

Customer loyalty: Customers remember who helped them in difficult times
Reduced attrition: Supported customers are far less likely to switch providers when conditions improve
Lifetime value protection: Maintaining relationships preserves future revenue potential
Brand strength: Reputation for caring about customers creates competitive advantage
Employee engagement: Staff feel better about work that helps people rather than just pursuing collections

Balancing Compassion and Commercial Reality

Supporting customers during recessions isn't about accepting losses—it's about intelligent risk management that recognizes customer relationships have long-term value worth protecting. The businesses that thrive through economic cycles are those that find ways to be both compassionate and commercially sound.

By implementing early intervention, offering flexibility, using data strategically, providing financial wellness resources, and communicating with empathy, organizations can help customers navigate difficult times while managing their own risk exposure. In the process, they build stronger, more resilient customer relationships that deliver value long after the recession ends.