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Checklist For Early Warning Signals of Distressed Customers - For Sales Reps

Here's the checklist that guides the sales reps to look after the major components for checking and the warning signs of a typical distressed customer

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About this course

description
lessonOverview

Please let me know if you see anything weird," Lohmiller & Company credit manager Brenda Erickson would tell her sales reps. But then it dawned on her that they didn't know what 'weird' meant.

She explains, "Salespeople tend to see new shiny things (like cars, trucks, new buildings, equipment, and new hires) as signs of success. But, as Credit Manager, I see new shiny things as the creation of additional, and potentially, unmanageable overhead costs. We balance the information with sales and payment history to continually analyze the situation." So, she decided to create a list of what weird meant to her and called it Early Warning Signals of Distressed Customers. She laminated it and distributed them to their reps, and urges them to discreetly check the list on customer visits. Here's the list:

For more on Erickson's procedures, see our article Strengthening Customer Relationships with a Sales-Commission Reversal Policy.

 

Early Warning Signals of Distressed Customers
Focus: Construction Industry Scenarios
Yes No Warning Sign
Decreased inventory, not just from us
Sudden increase or decrease in orders
Major expenditures
- New vehicles, the new facility
Loss of a major customer or client
Excessive downtime for lack of work
Expanding into new areas
- New construction to retail, res to cancel
Personnel layoffs
A key employee quits abruptly
Illness or death of the owner or key employee
The owner has domestic problems
- Divorce, family crisis
General disorganization
Lost equipment
Rumors in the industry that the business is in trouble
Business is for sale or has recently sold
Pricing complaints
Slow down in payments, requests extended terms
Increased excuses for non-payment
- Lost invoices, ran out of checks, no check signer
- Unusual disputes, NSF checks
- No check signer is available
Tax or workman's comp issues
Changes in advertising methods
Ownership uses business money for personal reasons
- Building a house, buying a car
Unusual extravagances
- Bonuses or raises out of the norm

Reviewed and Updated August 2020.

 

 

 
instructor  
instructor
name title image description Ins
Brenda Erickson Credit Manager, Lohmiller, and Company     .
related
image tag title description link contentType
KPIs and Reporting
Checklist of Early Warning Signals of Potential Distressed Debtor		 Find the complete warning signals of potential distressed debtors and the signs of debt problems specifically for sales reps and account managers.
https://academy.highako.com/checklist-of-early-warning-signals-of-potential-distressed-debtor		  
Bankruptcy
Get Ready To Ride The Bankruptcy Wave		 Several big retailers recently filed for bankruptcy: J. Crew, Nieman Marcus, and J.C. Penny being the most visible examples. They are only the first of many more.
https://academy.highako.com/get-ready-to-ride-the-bankruptcy-wave		  

 

About this course

description
lessonOverview

Please let me know if you see anything weird," Lohmiller & Company credit manager Brenda Erickson would tell her sales reps. But then it dawned on her that they didn't know what 'weird' meant.

She explains, "Salespeople tend to see new shiny things (like cars, trucks, new buildings, equipment, and new hires) as signs of success. But, as Credit Manager, I see new shiny things as the creation of additional, and potentially, unmanageable overhead costs. We balance the information with sales and payment history to continually analyze the situation." So, she decided to create a list of what weird meant to her and called it Early Warning Signals of Distressed Customers. She laminated it and distributed them to their reps, and urges them to discreetly check the list on customer visits. Here's the list:

For more on Erickson's procedures, see our article Strengthening Customer Relationships with a Sales-Commission Reversal Policy.

 

Early Warning Signals of Distressed Customers
Focus: Construction Industry Scenarios
Yes No Warning Sign
Decreased inventory, not just from us
Sudden increase or decrease in orders
Major expenditures
- New vehicles, the new facility
Loss of a major customer or client
Excessive downtime for lack of work
Expanding into new areas
- New construction to retail, res to cancel
Personnel layoffs
A key employee quits abruptly
Illness or death of the owner or key employee
The owner has domestic problems
- Divorce, family crisis
General disorganization
Lost equipment
Rumors in the industry that the business is in trouble
Business is for sale or has recently sold
Pricing complaints
Slow down in payments, requests extended terms
Increased excuses for non-payment
- Lost invoices, ran out of checks, no check signer
- Unusual disputes, NSF checks
- No check signer is available
Tax or workman's comp issues
Changes in advertising methods
Ownership uses business money for personal reasons
- Building a house, buying a car
Unusual extravagances
- Bonuses or raises out of the norm

Reviewed and Updated August 2020.

 

 

 
instructor  
instructor
name title image description Ins
Brenda Erickson Credit Manager, Lohmiller, and Company     .
related
image tag title description link contentType
KPIs and Reporting
Checklist of Early Warning Signals of Potential Distressed Debtor		 Find the complete warning signals of potential distressed debtors and the signs of debt problems specifically for sales reps and account managers.
https://academy.highako.com/checklist-of-early-warning-signals-of-potential-distressed-debtor		  
Bankruptcy
Get Ready To Ride The Bankruptcy Wave		 Several big retailers recently filed for bankruptcy: J. Crew, Nieman Marcus, and J.C. Penny being the most visible examples. They are only the first of many more.
https://academy.highako.com/get-ready-to-ride-the-bankruptcy-wave