How to be in control when doing telecollection?

Many times, I have observed that telecollectors are just following a given script. Worse, some are not even aware what they are supposed to do when they were able to have a positive call. In doing telephone collection, keeping control of the conversation plays an important part for the success of the collection effort. The telecollector must listen carefully for clues that will help motivate the debtor to pay. One of the more effective techniques is using a psychological pause after demanding payment. This places the burden of response on the debtor. If ever, the telecollector have lost control of the conversation, interrupt the debtor and continue talking, even if the debtor does not stop. Sometimes it is best to “turn over” the call to another collector or manager who can approach the debtor from a new angle, which might be more successful.

In order to stress the importance of the call, the telecollector can ask the person taking the message where the responsible party can be reached. Use time economically. When you find out the best time to reach the responsible party, call within those hours (or that day). Also, mark those times on the customer file for future reference. Get the name of the person taking the message to confirm that it was delivered, in case you have to call again. Do not make a demand for payment if the individual you are speaking to is not responsible for accounts payable.

Leave a message for a responsible party to call you back. If asked the purpose of your call, state that it is in reference to an “open bill” or “account payable”. Try to create a sense of urgency by saying something like, “it is important that he calls me back” or “I need to speak with him as soon as possible.”

Always ask the person taking the message to repeat your name and telephone number. Finally, remember to remain courteous at all times. If the customer does not return your call, it is important that you call back, either the same day or the following day. If there is too long a delay between calls, the sense of urgency will weaken.

Make regular follow-ups. One of the essential components of any collection is the action steps and plan that are taken following the call itself. Many experienced collection managers consider follow-up as the most important activity. Collection follow-up consists of four steps: First, Record your notes. After every collection efforts, you must record all conversation, commitments and/or promises for future reference. This will give you a clear history, of every collection efforts done and will give you a very good view on the character of the person you are dealing with. Second, update your records religiously. This is the common mistake of most telecollectors. Sometimes a contact person has already resigned and has been replaced by a new person, but they failed to update the records. Third, Take appropriate action. When there are failures in promises, always make necessary action that is prescribed in your credit and collection manual. Fourth, database information obtained, you will never know when you need that information.

For credit & collection (C&C) questions, comments and rejoinders you want to share, you can reach me at 0917-7220521 or at [email protected]