Post on 23-Jun-2015
description
transcript
Western Region Credit Conference
Brenda Terreault, JD, CBA
October 18, 2012
Telephone Collection Techniques
Time Is Money
Considerations
CompanyIndustryCustomers
Your Company and Industry Culture?
0Sales Driven vs. Accounting Driven0How competitive is the industry you are in?
Know Your Customers
0When do they pay?0What are their requirements?0Who to contact0How to contact
The Customer
0Conform your approach to the customer type:0 Small high risk0 Startups0 Bureaucracies - Large company, government0 Privately held vs. Publicly owned0 Contractual partners
The Customer
0What do you need to know to facilitate payment:0 Does customer provide notice of payment?0 Should you call to check on status before due?0 If an invoice is missed for payment, how do you best
address?0 What do they need from you to facilitate payment
more quickly?
Debtor Types
0Able to pay0 Honestly overlooked0 Procrastinator0 Grievance or dispute
0Actively-avoiding payment0 Poor budgeter0 Staller0 Temporary problem
0High-risk0 Eventual insolvent0 Hardship case0 Credit criminal
Your Communication Style
0When you are collecting from a customer, you represent your company so don’t . . .0 Use slang or swear0 Lose your cool0 Be less then professional 0 Misrepresent your intentions
Your Collection Style
0Reflects your company’s culture 0Be pleasant yet firm.0Use the nonverbal part of your voice 0Be persistent.0Be helpful.0Do what you say you’re going to do.0Try to resolve the issue with the first contact.
The Good, the Bad
and the Ugly
Telephone Collections
0Why?0When?0Five phases of a collection call.0Making the call.0Handling objections.
0 Why can’t they pay?0 When will they be able to pay?
Why telephone contact?
0Cost-effective0Provides you with immediate feedback. 0Letters are being ignored.0When the customer’s sincerity is in doubt.
When?
0Factors to consider0 Best time to reach0 Best place to reach 0 When did you call last
Five Phases of a Collection Call
0Preparation0 Identification0Fact finding0Agreement 0Follow-up
Precall Preparation
0Validate the amount.0Evaluate the customer’s payment record.0Analyze the customer’s collection file.0Map out a plan of action.
Who to ask for?
0The party who signed the agreement0The person who pays the bills0The person who can force payment
Identification of the Parties
0Do you have the right person on the phone?
0Consumer vs. Commercial
Identify Yourself
0Be clear about who you are and who you represent.
Identify the Personality Type – Why?
0A good collector sells everyday.0You need to build relationships.0You are the “solution.”
Four Basic Personality Types
0Steady Relater – open/indirect0 Usually cordial, willing to talk, noncommittal
0 Interactive Socializer – open/direct0 Cordial, willing, but can he get it done?
0Cautious Thinker – self-contained/indirect0 Quiet and reserved, noncommittal
0Dominant Director – self-contained/direct 0 “Here’s what I’m gonna do for you.”
Fact Finding
0The tactical pause – What do you hope to gain?
Use of Fact-Finding Questions
0Requires the customer to supply specific reasons for late payment.
0Provides collector with clues to potential solutions.0Ask questions but don’t interrogate.0No loaded questions.
Examples
0How did this happen?0What caused you to fall behind?0What is the specific reason for your payment
problems?0What can we do to help you get back on track?
Listening Let the customer talk. Identify the central
problem. Search out solutions. Tune in to the customer. Earn the customer’s
respect. Narrow the scope of the
problem.
Reacting (cont.)
0Complaints about goods and services0 Must be taken seriously.0 Don’t lose control by passing the buck.0 Investigate, promptly take the necessary action, and
report back to the customer.
Reacting (cont.)
0Denials of responsibility0 Must be treated with same courtesy as customers
who complain.
0Explanation of late payment or “the dog ate my homework.”
Challenges to Creditor’s Authority
0They admit they owe, but challenge you to collect it.0They will attempt to distract or upset you.
What If They Don’t Want to Pay?
0 “Our policy is to put past-due accounts on credit hold [and . . .].”
0 “This may impact your future shipment schedule.”0 “Customer delinquency is reported to the major
credit bureaus.”0 “Unless we can resolve this, we may have to use
other collection methods.”0Contact your sales rep. 0Escalate the claim as necessary.
Asking for Payment in Full
0Present with confidence.0Presume an affirmative response.0Must be specific as to when.0Should identify the desired form of payment.
Reaching an Agreement
0Negotiating a payment plan.0 Take control - ask for as much as you can as quickly
as you can get it.0 Sell the benefits of the plan. 0 Compromise when necessary. 0 Obtain specific commitments. 0 Always require a promissory note.0 Payment plan and continuing shipments
Reaching an Agreement (cont.)
0Overcoming objections.0 Separate the sincere from the insincere.0 What is the customer objecting to?0 Listen to what the customer is telling you.0 Break the proposal into smaller, more manageable
pieces.0 Obtain agreement on undisputed points.0 Return to disputed points and negotiate solutions.
Reaching an Agreement (cont.)
0Overcoming Objections0 Look for answers – Double-check your records and
make sure you know/have the facts.0 Get to the problem as quickly as possible.0 Take appropriate action.
Reaching an Agreement
0Payment promises:0 Be specific.0 Repeat back the arrangement.0 Ask for an immediate good faith payment.
Finalizing the Agreement
0Summarize the terms of the agreement. 0Confirm in writing.0 If appropriate, get a promissory note. 0Mark your file for follow-up.0Update your records.0Keep Sales Department informed.
Following Up
0Training the customer to keep the agreement.0Follow-up progressively.
Tips
0Be willing to say no to any unacceptable arrangement.
0Always throw the burden back on the debtor.0Never lose your cool.0 If the debtor is cooperative and makes reasonable
offers, you also need to cooperate.
Tips (cont.)
0 If the debtor is not reasonable, say what you’ll do and do it.
0Your job is to have a policy and a point of view, not a snappy comeback. 0 Essentially your point of view is,
0 “You received the good or service, and you haven’t paid for it.”
0 “Let’s figure out how to get over this hurdle and move forward in our relationship.”
Summary
0Company Culture Must Be Considered.0Resources 0Flexibility0Effectiveness0Know Your Customers 0Listen, Listen, Listen!0Never lose your temper.0Maintain control of the conversation.0Always keep your word.