In order to map out an efficient debt collection strategy that directs your efforts towards effective contact and high recovery rates, you must take into account a series of key and integral factors within your company.
There is more to debt collection than meets the eye. It is a process that involves a large number of aspects, including accounts receivable management methods, agent skills, compliance with given laws, and even customer profiling.
Nuxiba gives you the following recommendations for increasing your recovery percentages and meeting your targets.
Your Staff
Providing agents with constant training is of the utmost importance because they are in charge of interacting with customers directly and collecting money from them. Given that knowledgeable collections, professionals translate into high recovery rates, it’s advisable that courses be available not only to agents but also to their supervisors and managers.
Persuasive communication is a technique that not everyone manages to master; however, agents can develop and perfect it in contact centers with well-designed call scripts.
Effective negotiation goes a long way. Although the ability to establish a rapport with delinquent customers depends, in large part, on the personality of each agent, you can implement training programs on negotiation skills, and even on the psychology of negotiation, so your staff is equipped for the day-to-day challenges in debt collection.
One way to encourage agents to achieve good results is by paying them on commission; that is, by each account receivable collected. This measure, according to several credit and finance experts, reduces the risk of loss and leak of resources.
Your Process
Controlling receivables by age and outstanding amounts, as well as segmenting databases by stage of default, collectability, or location makes it easier to maintain a record of customers and keep accurate accounts.
Learn how to control accounts 90 days or less past due.
Though large debts that have been long overdue require you to take strong action, you must not overlook debts at the early stages of delinquency.
Be flexible when setting up debt restructuring plans to increase the likelihood of debtors proposing solutions themselves. Remember the main target is that debts are paid off in full, even if that means you have to agree to a payment extension.
Your Tools
Using technology can improve your debt collection tasks and increase both your contact and recovery rates. A comprehensive database that retrieves every piece of information of all your customers proves essential to collect your receivables. An automated dialing system is also indispensable to save time and achieve high right-party-contact (RPC) percentages by screening out unreachable phone numbers.
Nuxiba designed the most powerful tool for debt collection: CenterWare X5. A turnkey platform that features anything from predictive dialing to the best CRM application, along with an effective IVR system and a recorder that provides security to your business and customers alike.
Read more about these functionalities here.
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