CHAPTER-66666666666666666666666666666666
- 1. CHAPTER 6 TELEPHONE COLLECTION BEST PRACTICES
- 2. Collecting by phone: The three steps process
- 3. STEP 1: Planning and Preparation STEP 2: Making the call STEP 3: Closing the call
- 4. Collecting money is a job don’t want or shy away from. When you are making collection calls you need to remind yourself that the person you are calling can be: •EMBARRASSED •STRESSED •ANGRY •DEFENSIVE With this in mind it is important to have a plan in a place before you begin calling people. Some things to think about before you pick up the phone are what type of solution can you offer, and what payment options are available, also remain calm and be professionals no matter the response you get.
- 5. It is important to communicate confidence when you are speaking to anyone on the phone but specially a past due customer. You have to be able to stay in control of the call and the only way to do that is to be CONFIDENT and PREPARED. When you start making collection calls you want to already know what the laws are that you must follow, THE FAIR DEBT COLLECTION PRACTICES ACT (FDCPA) These laws vary depending on the type of collector you are and where you are collecting. Remember that one way to appear more confident when you make collection calls include your first impression. CONFIDENCE Come up with a greeting that says you are happy, pleasant and confident.
- 6. When your customer answers the phone and realizes you are calling about a past due invoice, they will not be happy, You must portray confidence and not a dull boring message. Smile when you talk to the phone, it will be noticeable in your voice. Your voice should be loud enough to be heard clearly, not to loud but not too soft. You want your customer to hear you and understand what you are saying. Sit up straight to your chair and imagine the debtor is sitting across from you. Even when you are on the phone, maintain “eye contact” by staying focused on the call. Don’t get distracted by others in the office or email. Relax and sit up straight, don’t fidget to your pen or computer. Use your face, voice and posture to send your confidence over the phone lines.
- 7. Before you pick up the phone you will want to take a look at a customer’s file. Any time you speak to a customer, make notes on the computer with the date and time and never call a customer without having their history in front of you. Once you place the call, If you are calling a business or a person who legally owes you the money. Never discuss any overdue accounts with an unathourized person, such as a receptionist, friends, relative or co-worker. “MARITES” Once you have the owner or customer on the phone identify yourself and your business and state why you are calling. If the customer tell you they cannot pay anything “we need to be angry?” Listen to them and then explain that you understand that they cannot pay in full right now but you do need a payment. Start at 80% of the total past due balance and go down from here. At the end of the call, repeat the payment schedule to the customer and make a note in the customer’s account, whenever you make a payment Arrangement like this, you will need to send a follow up letter the same day confirming the arrangement, due dates, amounts and new balance due. Include a payment envelope to speed up the payment.
- 8. Collectors can be their own worst enemies when making collection calls. Never pick up the phone to call a past due account without researching the account history before the call. Review a customer’s account before calling to ask for money. It is your job to be prepared for any excuse question the customer asks. If you are not prepared for everything, you will falter, lose your confidence and lose control of the call.
- 9. I know you are on the phone and the customer cannot see you but staying focused is important. You must practice eye contact when on the phone. Imagine the customer is sitting across from you. This focus will carry through the phone lines in your voice. A customer can tell if you are distracted or not paying attention, which tells them you don’t really care. Speak simply and clearly and be brief and to the point.
- 19. 12 ways to collect more money over the phone
- 20. 1. Be confident- you have to stay in control of the call, and the only way to do this is being by confident and prepared. 2. Be prepared- you need to have relevant supporting information. 3. Express urgency to the customer- after sending out your invoice with clearly printed due date, send a reminder as the deadline approaches to help you collect payments. 4. Smile- they can't see you but it will be visible to your voice.
- 24. You will also need to be prepared to manage the emotional side of the call. Debtors or past due customers will get upset that you are calling them, even though they know they owe you money and it is past due, this is something that normally happens with each call. It is always a good idea to have a pre-call plan. Before you dial make sure you know the invoice number, date of the invoice or shipment, the total amount due, how much of that is past due, the payment history, details of the past due order and if there were or are any disputed items. When the debtor asks you any question you want to be able to answer immediately, this shows the customer or debtor that you are serious.
- 25. Before you call prepare what you are going to say or your opening statement. Your opening statement should be brief and to the point. You need to identify yourself and your company, and then state why you are calling and what you want Collector: Hi this is Michelle from KTM Auto calling about your balance of 5500.00 on invoice #123 dated 4/1/2012. I am calling today to take your payment over the phone to clear tis past due balance from your account. Would you like to pay with a debit or credit card or a check over the phone today?
- 26. Example of how the call “could” go: . Debtor: I can’t pay, I don’t have any money. . Customer: Are you or your spouse working? . Debtor: Yes but I just started a job and don’t get paid for two weeks. . Collector: What day do you get paid? .Debtor: Fridays.