We are often asked by our new clients about the strategy we will employ to help them get paid and collect the money that is owed to them. Let’s face it, we are not the only collection agency out there so many businesses searching for a company to help with debt collections will want to understand how we might approach their customers differently to create some type of resolution.
The four founders of our company knew one thing was true. Demanding money from consumers with no regard for their situation was never going to produce any worthwhile results. In fact, they knew it would eventually backfire. It can go wrong in several ways. First, it can destroy a hard-earned relationship with a customer and second, people will get defensive and not want to pay you. Those are just two reasons. You cannot collect money if the consumer is afraid to pick up the phone.
Diplomatic Collections Work
A basic human reaction to someone owing you money, and not paying you is anger. You begin to wonder why the person has not paid you and you also start to mistrust that person. The reaction for many that do owe the money is to stop communicating and try to ignore the obligation. Both are not going to resolve the matter.
The best way to resolve a debt with a customer is with a diplomatic approach as it allows for a resolution. Getting people to communicate produces results. What does that mean?
Let us tell you how we implement diplomacy.
Tone of Voice Matters
A warm and caring voice is great place to start. Leaving a voicemail for a customer with an angry tone of voice will not get you anywhere and our team understands this to be a basic part of collections. The last thing a consumer wants to do is get into a phone conversation where the other party is reprimanding them for not paying their bill. In
short, being nice equals results. Each and every team member here understands this part of the job and knows that every phone contact needs to be and will be cordial. It will not be confrontational.
Understanding Financial Situations
One thing is very clear here. We will never ask a consumer to enter into an agreement that they cannot afford or commit to. That does not work, and it is not in anyone’s best interest. We want to set both the consumer and our client up for success and the way we do that is to understand a consumer’s situation before we articulate a path forward. In most cases, we ask the consumer what they can afford. And during our conversation, we can get a better snapshot of their individual financial health and what is a reasonable solution to the debt. Some consumers will overcommit to a debt collector and in many cases, that results in further delinquency. No one wants that. It only drags out the process and it takes a client longer to get the money owed.
And there are just times when a consumer cannot pay such as the loss of household income or other family matters. We need to understand these situations because one, it allows us to create a solution, but two, it makes us human and compassionate.
Helping Consumers Helps Your Business
Yes, we are here to help you get paid the money that is owed to your business. That is our number one goal. But we are also here to help your customer. Helping consumers creates solutions to an outstanding debt. Doing it with respect and understanding helps a business retain customers, and a medical practice to keep patients. The initial reaction to a debt collection call is one of mistrust. But when the person on the call can convince you that they are there to help create a solution to that debt, that builds trust. When we can represent a business with the highest standards, that only helps that business preserve relationships they have built over time. Sometimes a consumer does not know how to move forward with a debt and in turn, a business loses customers and ultimately future revenue.
Diplomacy helps your business get paid for what you did and preserves future business.
Doing the Right Thing
The world of politics is a perfect example of how diplomacy can and cannot work. When one side wont budge at all on their demands, diplomacy fails. When clearer heads come together, and communicate, diplomacy creates a successful outcome that makes both parties content. The same holds true in collections. Helping a consumer create that path forward not only works, but it is the right thing to do. It creates a solution, it helps you the business save a customer and it preserves your reputation.
If we could brag for a moment…American Profit Recovery tracks consumer compliments… Yes, the positive comments we get from the people that owe you money that you have asked us to call. In the first half of 2020, we have had well over 2,000 positive comments from consumers. These are the people in collections for not paying a bill. They have thanked us for helping them. That’s doing the right thing and it’s called diplomacy.
- Gets you paid
- Preserves your customer relationship and future revenue
- Maintains your good reputation as a business
- Creates steady cash flow
Diplomacy in debt collections works. #DebtCollectionsDoneRight