PR: Collection Call Tips (03-27-24) | Scribe

    PR: Collection Call Tips (03-27-24)

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      **#1 Be prepared with specifics on the account you are calling** Be ready to handle excuses, get specific with your customer and stay in problem solving mode. - Establish the payment is late – You need to plainly state the reason you are calling, which is to let the customer know their payment is past due. - Discover WHY the payment is late – Instead of simply listing off the facts to your customer, ask them why the payment is late? Don’t offer up excuses for them, listening to the customer will help you better solve the problem at hand. - Get a payment promise/game plan from the customer before hanging up – The call is useless if you cannot get that promise from your customer. Do everything in your power to make this happen. **Common Responses:** Customer: *I don't have a copy of the invoice.* Collector: *I'll email or fax the invoice over right now. I need to make a note, will you be mailing the check today? What do we need to change in our process to keep this from happening again?* Customer: *I must have missed it. Will get you a payment in the mail.* Collector: *That’s great, will that be mailed today? (Customer needs to commit to a firm action plan)* Customer: *I have a cash flow problem right now.* Collector: *I understand that times are difficult, let’s work towards a solution. Can I set you up on a payment plan, or can you make at least a partial payment today?* **Know the Facts** Before you pick up the phone, It's critical that you have all the specifics of the debt you’re calling about. Having the facts in front of you keeps you in control. You don't want the conversation to get derailed by a question you can't answer. Many debtors know how to use this to their advantage. Suddenly they can't discuss payment on their account without details you don't have and they don't "have in front of them" either. So, the call is over. Be sure to have the following in front of you before you make the call: - Amount owed - Account terms - Payment due date - Helpful to know account history - Aware of other open invoices, even those not yet past-due **Know Who You are Calling** It's also helpful to brief yourself on the customer's payment record with your company, as well as any other payment history you may have available to you. Do they usually pay on time? Are payments getting slower and slower? Is past-due payment uncharacteristic of this customer?
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      **#2 Goal of the Call is Get Paid ASAP** Collection calls are about gathering information. Why are they late? What is their next action step? What can you both do to work together to get the balance due paid? Train yourself to ask the right questions, and to be quiet after you ask the question. Let your customer tell their own story. Don’t make excuses for them. Example, If they tell you they’ve lost an invoice, get it to them via email or fax, and try to determine why they didn’t have the invoice; such verify email address(es) invoices are sent, then ask for turn around time for payment to be issued.
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      **#3 Get the Most Out of Each Call** **Listen carefully and be sure to put notes in on the customer’s account.** You will get clues to whether the debtor is serious about paying. You'll also have specifics from last status and details if there is a next call and will be ready to counter any excuses that may have been tried in the past. **Use silence.** Count slowly to five before responding to a debtor statement, and wait several seconds after asking a question. Leaving blank spaces in the conversation compels the debtor to fill them in. **Don't let the debtor manipulate you.** An angry, complaining debtor could be using that as a way to derail the call. Stay calm and in a listening mode, helpful to solve any problems but ultimately getting payment commitment is your end goal before the call ends.
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      **#4 Nail Things Down** If you can't get them to commit to payment in full, get a promise of something – a call back date or partial payment. Make sure you control the timing. Don't ask. example, "When can you get back to me on this?" or, ask "Will you be calling me by Wednesday?" Important to summarizing the results of the call.
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      *\*Partially written by the Pitts Group*