Collections Tecnhiques
1. Get to the decision maker.It doesn't matter howgood your presentation is if it's made to the wrong person.Everyone has the power to say 'No,' while onlyspecific people can say 'Yes.' If the bookkeeperor office manager can't authorize payment, you are just wastingyour time and theirs. Find out who has the authorization to pay youand get to them as quickly as possible. In some companies, thedecision maker may be an accountant, while in others, it's theowner.
2. Ask questions.The collector's objective in askingquestions is two-fold--to find out when and how you are going toget paid, but also, and in some cases even more importantly, tofind out why the account fell delinquent. Recent surveys have shownthat 35 to 50 percent of delinquencies are caused by systemproblems (either human or computer) not because of a slow-payingcustomer. Don't afford to allow accounts to fall past duebecause you failed to find the cracks in the system.
3. Make your presentation based on what you'velearned.Collectors should use the information they'vegathered to place the customer into one of several types and maketheir presentation based on that. Customers are different, and thereasons for their delinquencies are, also. Maybe a customerdoesn't think you're important enough to pay promptly.Maybe he's not satisfied with the product. Put that informationto use and customize an approach.
4. Determine who is supposed to do what and when.Onceyou have an understanding during the collections process, repeatthe understanding back and ask, 'Is thiscorrect?' Once they answer yes, make a note on yourcalendar to call back and follow up. If you call too soon, you willirritate the customer. Call too late, and you send signals that youare timid or disorganized. Confirmation followed by precisefollow-up is the mark of the professional and tells your customeryou are serious.
On large payments, offer to have an overnight service pick-upthe payment or ask someone to call to confirm mailing. Thisinstills urgency and allow you to schedule your follow-upprecisely. (Atlanta Small Business Monthly)
