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Telpehone collection workshop for collectors
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The Telephone Collection The Telephone Collection WorkshopWorkshop
Top Performance Inc./Credit In Canada
October 2005
The Changing Face of CreditThe Changing Face of Credit
The Changing Face of CreditThe Changing Face of Credit
Scarcity of solid credit information
The Changing Face of CreditThe Changing Face of Credit
Scarcity of ongoing credit informationMore sophisticated customers
The Changing Face of CreditThe Changing Face of Credit
Scarcity of credit informationMore sophisticated customers Better educated
The Changing Face of CreditThe Changing Face of Credit
Scarcity of solid credit informationMore sophisticated customers Better educated“Customer-power”
The Changing Face of CreditThe Changing Face of Credit
Scarcity of credit informationMore sophisticated customers Better educated“Customer-power”Legal system and costs tend to favour
debtorOther creditors taking precedence
It’s Safe To Say That It’s Safe To Say That Delinquency Isn’t Going AwayDelinquency Isn’t Going Away
Wishing and Hoping Won’t Cut It Wishing and Hoping Won’t Cut It
It’s going to happen – one customer at a time
What Hasn’t Changed?What Hasn’t Changed?
Time – the day is exactly the same number of hours
Not much automation in billing/collectionsMistakes in billing are compounded by
automation (computers are stupid!)
Question?Question?
Has it simply become good business for some customers to pay on their own terms or wait until suppliers call?
Question?Question?
Has it become good business to for customers to pay on their own terms or wait until suppliers call?
In other words, terms of sale move from contractual terms to tolerated terms
“My job is to manage my payables – not manage your receivables”
“I decide – should I pay late? If so – how late?”
- A Controller in Kingston
Problem AreasProblem Areas
No real agreement – more implied or by conduct
The creditor doesn’t know why – the blurring of “willing and ability”
The fear, real or perceived, that if pushed, customer will go to competitor
What We Need To DoWhat We Need To Do
Become better communicators Target solutions rather than take a shotgun
approach – “willing it” won’t make it happen Work on recurring problems Reduce risk by becoming more credit-conscious –
work on financial info Reduce risk – at least in time
Wouldn’t It Be Nice To Know?Wouldn’t It Be Nice To Know?Did the customer receive our invoice?Did the invoice match their purchase?Was it approved by their buyer?Have they scheduled invoice for payment?What is the payment schedule date?Are they going to deduct a portion – why?Do they have enough money to pay?Have they paid? When?
The best collection techniques are the preventative ones
When Does Collections Start?When Does Collections Start?
When Does Collections Start?When Does Collections Start?
When account goes overdue?
When Does Collections Start?When Does Collections Start?
When account goes overdue?When account is opened or sale is made?
Collection of Accounts StartsCollection of Accounts Starts
When they go overdue When you get around to it When the bill is sent When the account is opened
Positioning Starts When Positioning Starts When Account Is OpenedAccount Is Opened
An account properly opened is half-collected
Positioning Starts When Positioning Starts When Account Is OpenedAccount Is Opened
An account properly opened is half-collected The establishment of the rules, the needs of the
parties and agreement as to how exceptions will be handled
Positioning Starts When Positioning Starts When Account Is OpenedAccount Is Opened
An account properly opened is half-collected The establishment of the rules, the needs of the
parties and agreement as to how exceptions will be handled
It is not unlike trying to train a 10 year old dog – very difficult – better when the animal was a puppy
A Breakdown of ProcessA Breakdown of Process
1. Opening accounts
A Breakdown of ProcessA Breakdown of Process
1. Opening accounts1.1 Informative stage
A Breakdown of ProcessA Breakdown of Process
1. Opening accounts1.1. Informative stage2. Reminder stage
A Breakdown of ProcessA Breakdown of Process
1. Opening accounts1.1. Informative stage2. Reminder stage3. Discussion stage
A Breakdown of ProcessA Breakdown of Process
1. Opening accounts1.1. Informative stage2. Reminder stage3. Discussion stage4. Recovery stage
Reminder StageReminder Stage
Invoice confirmationsPre-remindersDo early??
Discussion StageDiscussion Stage
Moves from 1 way to 2 way communication
Discussion StageDiscussion Stage
Moves from 1 way to 2 way communication Very different skillsets - assertiveness- integrity- credibility- problem-solving abilities
Number 1 Reason For Lack of Number 1 Reason For Lack of SuccessSuccess
No Plan
Instead What Customers Instead What Customers Often GetOften Get
Apologetic/timidityTraining that it’s OK to wait until you call –
the telephone call is just an invoice noticeSometimes different stories Occasionally confrontation/aggressiveness Being placed on hold without notice to
buyer
Some Other ObservationsSome Other Observations
No one aspires to do collection work. Backgrounds/experience and education rarely apply
Very few of us had any training other than “battleground experience” or through peer training
And… that is not an issue when the collections are routine.
Most people have good motivation and desire to other areas
Observations 2Observations 2
Desire and motivation are not skillsSome people bring some natural ability in
more than others but…Natural abilities will only take a person so
far When we add an increase to workload and
new tasks, it becomes obvious that training will help you when your charisma runs out.
Evidence of AverageEvidence of Average
Calling same people over and over each month
When there are more than 3-4 staff, why are some better than others?
Lots of “coasting is evident”10 years experience is usually more like 2
years of experience multiplied by 5 years of time
Building A CallBuilding A Call
PreparationAnticipation Practice
Having Reasons WhyHaving Reasons Why
Why should I pay?
Three ApproachesThree Approaches
DirectAssumptiveIndirect (with border)
Dealing With Dealing With Concerns/Objections/StallsConcerns/Objections/Stalls
Use tie-downProbe to clarifyGo to alternative plan
Payment PlansPayment Plans
Get in writingKeep them short Remember there are other creditorsPerhaps think settlement – talk over with
boss
‘‘The secret of success is to do The secret of success is to do common things uncommonly common things uncommonly
well.’ well.’ – John D Rockefeller– John D Rockefeller
Be The Best!Be The Best!
: :
Needs AnalysisNeeds Analysis
Results should be a game plan to be the bestBeing Five Star is not an accidentEvery customer contact point has been
analyzed, time managed and recurring issues dealt with.
Instructional Method: Instructional Method: Case Study Case Study
What Do They Want?What Do They Want?
Options such as easy ways to payHelp if they need it Going the extra mileSingle-source for information (or at least
the same story)
Building a relationship is based on respect and mutual effort – it takes time and effort
Key Skills Checklist Key Skills Checklist
1. How well do you communicate with customers?2. Does someone “talk money” with new
customers?3. Do you attempt to train customers or are they
training you?4. Do you have a plan to decrease delinquency one
account at a time?5. Do you consider yourself pro-active or re-
active?