Even in today's automated environment, collection calls are an essential part of the Credit Department's role. This can be an unpleasant and daunting task for a collector, and for you as a Credit Manager when collection issues are escalated.
Now, more than ever, it can be difficult just to reach your customer. A customer may be evasive, leading to an endless cycle of voicemails. When you finally reach Accounts Payable there may be a limit on the line items that can be discussed. A collector may put confrontational calls on the back burner. Sound familiar?
Here are five tips that may help get the results your company expects.
1. Always Prepare For the Call:
- Have the details in front of you. Including targeted invoices, notes, and any documents you may need during the call. Look at the customer's payment record and trends.
- Call the appropriate person: Know when to go beyond the Accounts Payable Administrator and escalate payment issues to a decision maker. If contact with the Accounts Payable Manager fails, try speaking with a buyer, project, or program manager.
- If a customer calls unexpectedly, put them on hold as you gather what you need. As a last resort, reschedule so you will have time to prepare.
- Be prepared to confront excuses and discern danger signs.
For Example:
- The customer may tell you payment has been made. Get the details, a check number, and the date it was mailed, or ACH details, etc.
- Avoid showing a lack of trust. One way is to explain the detail needed to ensure the payment is posted properly.
- If you are told an invoice or other document copy is needed, do what you can while you are on the phone.
- If the objection involves a claim that the shipment was damaged, priced incorrectly, a shipment error, etc., follow up immediately. Initiate a request to the appropriate internal contact to investigate a dispute or deduction. Then follow through on a timely basis.
- If the excuse is a cash flow problem, dig deeper. Ask what can be paid today. Try to understand what is driving the cash flow issue. Based on what you hear, ask to speak with the CFO or owner.
2. Always Assume Your Call Will be a Success
Positivity is contagious. A positive attitude comes through in your voice and demeanor. This can affect the response you get. The person on the other end can tell if you have a smile on your face, remain irritated from your previous call with another customer, or expect a negative response.
3. Always Remain Professional and in Control
The tone, pitch, voice inflection, and speed at which you talk can influence the customer and their reaction.
- Speak clearly and distinctly.
- Make sure you both understand each other's position and commitments. Have the customer repeat what you are asking for, particularly if there are heavy accents or language barriers.
- If the customer has a tirade, let it play out. Listen carefully. There may be valid complaints you can act upon.
- When the customer speaks loudly, you speak in a low, slow tone.
- If the conversation gets out of hand with profanities and threats. Sometimes repeating what they say verbatim helps them realize they are out of line.
- Try telling them you must leave for a moment but will be right back. Emotions may have subsided when you return.
- If all else fails, suggest scheduling another call allowing time for the customer to calm down. If necessary, consider reaching out to a higher-level decision maker.
4. Do What You Can to Keep the Customer Talking
- Start by personalizing the call. Address the customer by name.
- Confirm you hear what is being said. Use phrases like: "I understand why you feel that way", or "I can see how something like that might happen."
- Ask open-ended questions to get as much information as possible.
- Take notes as you listen carefully.
- Silence is your secret weapon. The customer is likely to respond to 10-20 seconds of silence with valuable facts or a concession.
- Don't lose focus because of a barrage of complaints and accusations. Do your best to resolve what is owed by remaining calm and on track.
5. Get a Commitment
- Expect full payment. If that fails, ask for a partial payment.
- Be open to reasonable tradeoffs. “We receive payment by Wednesday, and I will release the product on hold.”
- Restate customer commitments clearly. Ask the customer to repeat their understanding until both parties are in agreement.
- Set dates to the customer's commitments.
- Note what was agreed to.
- Send the customer an email/letter detailing the agreement.
- Follow through on the date payment is expected.
- Be sure to meet your commitments.
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