• Are
they a large, medium size, or small business? This is
important because the size of the company will
determine who your payment decision maker will be. The
smaller the company the higher the level of decision
maker. For example, in a very small business the
decision maker will probably be the president of the
company or owner. In a medium size business, try to
reach the controller or general manager. In a large
business your best target decision maker may be the
accounts payable manager or supervisor. Remember if
you don’t involve a decision maker, don’t expect a
decision.
• What
is their payment record with us? The history of the
customer’s payment record may help you understand why
your account is past due. If they usually pay on time
but have not on this occasion, there may be a dispute.
In this instance, be sure to check with the customer
that there is not a problem before you demand payment.
If the payments are getting slower each month, your
customer may have a cash flow problem and a more
aggressive approach may be needed.
2)
Have a positive attitude. Calling customers and
reminding them of their unpaid bill is not always a
fun-filled task. But it does not have to be an
unpleasant experience. Be upbeat and professional.
Your mood will be contagious. If you sound interested
and enthusiastic about your job, you are much more
likely to get a positive and satisfying result.
Remember, if you don’t sound interested in what you
are saying, the other party will not be interested in
hearing it.
3) Be
a good listener. Be sure to listen to their name and
to make a note of it for use during the call and for
the next call if needed. Listen to the mood of your
customer. Their mood will to some degree affect the
pace of the call. Listen to what they do say and what
they don’t say. Cutting a check or a check is being
processed does not necessarily mean a check is being
sent. Take notes and refer to existing notes. That way
you will stay focused and be an active listener
throughout.
4) Ask
the right questions. One of the most common questions
asked by collectors is "When will you be sending a
check?" It is also one of the worst questions because
it abdicates control of the outcome. The only time to
ask a customer when they plan to send a check is when
you are not concerned by whatever date they give you.
If all you are doing is cash forecasting, the question
is fine, but if you are trying to facilitate fast
payment it is the wrong question. A better question
is, "Will you be mailing the check today?" or less
assertively, "Will you be sending payment this week?"
In both of these examples you are still maintaining
control of the time frame and are less likely to be
manipulated by the answer.
5)
Follow up progressively. Each collection call to your
customer should have a theme.
Call #1. Benefit of the doubt. Remember some
customers will pay you because you brought the matter
to their attention.
Call #2. Firm and assertive. If the first style
doesn’t work, your next call will be designed to cause
the customer to pay you to get you off their back.
Call #3. Explain the future. Some customers will
only pay when you explain the consequence of
nonpayment. If you have to make a third call about a
past due bill, that is the time to apply this kind of
pressure.
6)
Always keep your word. Credibility is one of the most
important aspects of a collection call. Your customer
must always believe you mean what you say. If you
promise action will be taken on a given date you must
take that action, or don’t say it. Also, be sure that
other departments in your company support your
actions. There is nothing worse than telling a
customer a certain course of action will happen only
to be overridden by another department or authority.
Remember, when people know that you always do what you
say you are going to do, they take you very seriously.
7)
Always remain calm. Do not allow an angry customer to
aggravate you. Sometimes debtors think the best
defense is a good offense. They will become angry in
order to deflect you from your goal of getting paid.
Do not be tempted into an argument. That just gives
the customer a reason not to pay. Remain calm, be
polite and stay focused. You are in the right.
Ultimately, a firm but fair approach will get results.
8) Get
a commitment. Your ideal collection call will get the
customer to commit to pay in full today. If that is
not possible, get a commitment to something. Any call
that does not result in a commitment to pay or a
commitment to call back with a payment date is a
wasted call. Always get a promise of something, that
way all your calls have value.
9)
Summarize carefully. Did you ever receive a payment
promise and the check didn’t show up? If so, it may be
that the customer forgot your call the moment they put
down the phone or they decided you were not that
concerned about the outcome. Never leave the customer
unsure about your expectations. Summarize the
agreement carefully, going over each point. If the
solution was complex put your summary in writing.
10) Be
effective, not efficient. Fifty calls a day may be an
efficient call rate, but if none of the calls result
in payment it was not an effective call rate. Quality
rather than quantity is the key. Make each call
worthwhile and your success rate will be high.
A customer continually ignores
your collection letters and phone calls.