Following my last week’s column on telephone collection, I received a rejoinder email asking me to elaborate the processes of telephone collection. Personally, doing telephone collection is the most cost effective and more efficient way of collection process compared to collection letters. I always believed that telephone collection is not as easy as it sounds however is not as complicated as others would like us to believe. In one of our seminars in Cebu given by my mentor and favorite speaker Mr. Erdulfo “Erling” Sison, he enumerated a list of correct principles and/or policies when setting up or doing telephone collection. Let me share it with you. Below is what we call ABC of telephone collection:
ANTICIPATE your needs before you start your call. Have all the information and tools on hand that you might need. It will help if you have the index card or file with you before you call. The following are important details: invoice no., amount, authorized person and contact address/ nos.
BELIEVE in your ability. If you have confidence in yourself, you are able to accomplish more easily what you set out to do. Attend trainings and seminars. Nothing beats a well-trained collector.
CONTROL the conversation. Be firm and business-like and keep in mind your goal of Paid In Full (PIF). Don’t be distracted by “sad stories”. Likewise, don’t be drawn into an argument. Control both the conversation & your emotion.
DEVELOP a “third ear”. Listen closely for clues to help you collect, both what is being said and how it is said. For sure, there will be “clues” that you can capitalize and expound to your advantage, such as assets and/or extra cash.
ENCOURAGE the debtor to talk. Let him tell his own story in his own way. This will give you opportunity to strategize your next move.
FOCUS attention on developing a definite plan of action that will clear up the account in full. Sometimes, because you were not able to control the conversation, you end up just talking and not collecting.
GUARD against showing any signs of belligerence. Discuss problem sources of money with him.
HELP the debtor find ways to meet his obligation. Always insist Payment-In-Full. Discuss problem areas and solution and/or sources of money with him.
IDENTIFY the debtor, you, the creditor, and the amount of the claim. Be sure you are talking to the debtor or his wife, or the person who will pay the account. Always look for the correct and/ or authorized person.
JOT DOWN notes as you talk to the debtor. Don’t trust your memory – you need an accurate record of your telephone interview. It is very helpful, if you have a simple system and computer in front of you to record all discussion.
KEY your approach to what you know about the debtor. Take into account his background and probable attitude. It is also helpful, if you could review past conversations and/or efforts made with debtor so that you could anticipate if ever this will be used as reason or excuse once again.
(to be continued)
For comments, rejoinders and questions related to credit & collection, send email to elimtingco@yahoo.com.