Over the last ten years, the number one topic requested at
our credit seminars is “how to make an effective collection call.” The best
medium for this still remains the telephone; however just picking up the phone
is not good enough. If you don’t have a predetermined strategy in place, you’re
probably spinning your wheels – being ineffective and costing your company
money.
So how do you improve?
Here are the top ten steps you can take right now:
1.
Know your customer and their business. Are they
impacted by seasonal cash flow etc.?
2.
Deciding what strategies you will use to stay on
track.
3.
Set goals for yourself. For example – reduce DSO
by 12% to improve cash flow.
4.
Deciding and outlining which strategies you will
use to achieve its goals.
5.
Create effective call scripts so the
conversation flows well and you can effectively manage objections and/or stall
tactics.
6.
Measure your results to see what works and what
does not. Establish key performance indicators (KPI) to help benchmark future
results/ activities.
7.
Make detailed notes of your conversations with
your customers. Before hanging up the phone – provide the customer of a recap
of your understanding of the conversation. Better to catch misunderstandings
now.
8.
Try to establish quickly if the customer is slow
paying because of a dispute or cash flow issues. You can increase customer
satisfaction by simply listening. If there is a legitimate dispute – deal with
it. If it is a cash flow problem – see if you can work with the customer.
9.
Be decisive. If you are getting many promises
but no meaningful action (money) then consider bringing in a professional
collection agency or lawyer. If you don’t follow through – your customer will
take advantage of you.
10.
Consistency is key. Consistent follow up –
consistency doing what you say you’re going to do. Customers (and your bossJ) will soon learn that
your invoices get paid before others.
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