Communication is challenging yet talking is simple. Because what matters most is what the other person hears, not what you actually say.
As a Collector, do you hesitate before initiating a negotiation? Do you worry that you won't be able to persuade your customer the way you want? Do you worry that having to be tough with a customer would ruin the relationship? After all, someone needs to lose in order for someone to win, right? Well, maybe not always.
Here are 6 easy measures to uncover secrets to collections problems, which can cut delinquencies by up to 40%!
1. Talk About Financial Expectations Up Front.
By outlining expectations now, you can avoid many unpleasant surprises for your clients in the future. Create three opportunities for your customers to learn about expectations:
a) Allow the salesmen to go over the terms with new clients before they start doing business,
b) New customers will be given credit applications to fill out by the salesperson. Additionally, the terms are printed on the applications.
c) And finally, all customers receive a welcome letter when they have been set up officially, which also highlights the need of adhering to the company's conditions.
2. Conduct An Investigation Of Each New Customer.
a) Inquire about the customer and their facilities from the salesperson. Finding out how organized or messy someone's desk is can be a simple but effective way to learn a lot.
b) Verify that the customer has signed and returned the completed credit application.
c) Obtain a customer's credit report from a third party.
3. Once A Customer Is Set Up, Don't Be A Stranger.
Send a thorough and welcoming welcome letter that addresses the majority of the customer's inquiries regarding doing business with your business. Make sure it also includes the names of every employee with whom a customer might need to speak with as well as their specific responsibilities.
4. Keep Abreast Of Customer Situations Through Secondary Sources.
Ask the salesmen whether they have any new information or negative—on the state of your customers. This will enable you to maintain tight control over the customer, ensuring that they pay for each order before you send out another.
5. If An Account Reaches 45 to 50 days, Place A Call To The Customer As A Friendly Reminder.
If there is anything you can do to accelerate payment, ask your consumer. This one phone call typically solves the issue, allowing you to get your check within a few days.
6. If The Account Eventually Hits 60 Days, Automatically Place It On Credit Hold, And Require Any New Orders To Be Covered COD.
Call your customer to remind them of the terms' coverage of your policy on this and to ask them once more if there is anything more you can do to assist. The majority of delinquencies are resolved during the first call (at 45–50 days), but almost all are resolved during this 60–day call.
Final Thoughts
his article will help you gain a “win-win” approach to collections call negotiation that will leave both parties feeling like winners. It will also provide you with all the benefits of win-win negotiations. Follow these 6 steps and reduce your delinquency by up to 50% and improve your credit rating now!
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