Following my previous 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.
After giving the first part (A to K), herewith are the remaining ABC’s of Telephone Collection.
LEAD the debtor to develop a plan of action, which will clear up the account in full. Always emphasize the urgency of the situation and the advantage of settling the account immediately.
MOTIVATE him to pay. The three basic appeals are honesty, pride, and fear or anxiety. If this will not work, double check if your policy states anything in terms of escalation.
NEGOTIATE the most advantageous settlement possible for your client, if you’re not able to obtain a payment in full. However, be sure that you are in a position to negotiate.
OBSERVE any signs of the debtor’s holding back information or making inconsistent statements. These may be a clue to his intentions. You must learn to identify, if it is a legitimate excuse or it is just an alibi.
PAUSE for a short time after opening the conversation. This throws the burden of conversation on the debtor and gives him a chance to offer payment or to give his reason for not paying.
QUENCH any tendency you have to preach, moralize, judge or argue. Avoid fighting words.
REVIEW the debtor’s record. If there have been previous broken promises, you will want to keep a close check on any payment arrangements he may take.
SELL the debtor the benefits to him of a Payment-in-Full (SIF). Select a punch line to fit the debtor’s situation; stress the urgency of the matter.
TALK clearly and distinctly when making a collection call. If you tend to speak fast, train yourself to slow down so there is no chance of the debtor’s misunderstanding you.
UTILIZE your mistakes. They will help you do better job if you let yourself learn from them.
VARY your approach. If you sense you’re not getting through to particular debtor, try a different approach.
WITHHOLD agreement to accept a partial payment until you are fully satisfied there is no other feasible means of collection.
X-RAY all the facts. If you find a problem you can’t solve, refer the account to a more experienced collector in your office.
YIELD only when you are convinced that there is real hardship, the claim is impossible to collect, or is detrimental to the client’s interest.
ZERO IN on every call you make. Persistence and patience will pay off.
For comments, rejoinders and questions related to credit & collection, send email to elimtingco@yahoo.com.