Client Retention, Client Referrals: Sharing Best Practices
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Client Retention, Client Referrals: Sharing Best Practices



Client Retention, Client Referrals: Sharing Best Practices examines proven approaches to DMP provision. The presentation reviews factors that lead clients to leave their program prematurely, as well ...

Client Retention, Client Referrals: Sharing Best Practices examines proven approaches to DMP provision. The presentation reviews factors that lead clients to leave their program prematurely, as well as a variety of measures you can implement to increase client success. In addition, attendees will learn how to develop strategic community relationships to increase the reach and scope of their credit and housing counseling programs.



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  • Thomas J. FoxCommunity Outreach DirectorCambridge Credit Counseling Corp.IFL Certified Educator in Personal FinanceAFCPE Accredited Financial

Client Retention, Client Referrals: Sharing Best Practices Client Retention, Client Referrals: Sharing Best Practices Presentation Transcript

  • Sharing Best Practices
  • Areas of Focus
    Sharing Best Practices
    Stabilizing Client Base
    Aiding Client Success
    Community Engagement
    Creditor Trends
  • Engage clients to “get the word out”
    Stabilizing Client Base
    Sharing Best Practices
  • 4
    Referral Programs
    Referral programs can be beneficial to the community, and your agency.
    Sharing Best Practices
  • 5
    Referral Programs
    However, compensation referral programs can be in violation of many state and federal laws
    Sharing Best Practices
  • 6
    Referral Programs
    As we have seen, non-adherence to state and federal guidelines can draw unwanted attention
    Sharing Best Practices
  • Successful Referral Programs
    Ask clients to refer family members, friends, and colleagues
    Management drives the message
    Instilled in agency culture
    Consider every touch point as an opportunity to reinforce messaging
    Sharing Best Practices
  • Agency Culture Drives Results
    Traditional Agency receives .5% Referral Enrollment Rate (of client base)
    Referral Culture agency can receive as much as a 2% Referral Enrollment Rate (of client base).
    Monthly Enrollment
    Sharing Best Practices
  • Stabilizing Client Base
    Sharing Best Practices
    Public Outreach & Advertisements
    New Clients From Free Referrals
    Client Base of 10,000
  • Every Touch Point Possible
    Sharing Best Practices
  • Every Touch Point Possible
    Sharing Best Practices
  • Economic Messaging
    Addresses current economic issues
    Builds a relationship of comfort and guidance
    Sharing Best Practices
  • Industry Messaging
    Educates as to the dangers of debt settlement
    Offers solutions for friends, family members, and colleagues
    Sharing Best Practices
  • Congratulatory Messaging
    Build positive rapport
    Encourages future referrals
    Sharing Best Practices
  • CompletionMessaging
    Congratulates client on their success
    Encourages client to share success with others
    Sharing Best Practices
  • Additional Touch Point Opportunities
    There are many opportunities to engage clients for referrals
    Sharing Best Practices
    Client Services interactions
    Account correspondence (i.e. statements, client letters, e-mail, etc.)
    Phone technology
    Educational material
  • Creating a successful experience
    Sharing Best Practices
    Aiding Client Success
  • First Few Months of Enrollment
    Clients can be:
    Unsure, and
    Sharing Best Practices
  • The Road to Plan Success
    Comprehensive Budgets
    Accurate Implementation
    Set Expectations
    Urging Client to Save
    Sharing Best Practices
  • Roadblocks to Success
    Sharing Best Practices
    Some Examples:
    Poorly Constructed Budget,
    Unclear DMP Expectations, and
    Declined Proposals
  • Budget Construction and Success
    16+ Expenses
    10 or Less Expenses
    Based on Cambridge Internal data
    Sharing Best Practices
  • Basic Budget vs. Comprehensive Budget
    Examples of counselor digging into category expenses.
    Sharing Best Practices
  • “An Ounce of Prevention…
    First DMP summary the client agrees to should notbealtered!
    Second guess enrollment
    Become confused
    6% to 14% default on first payment- range
    2% default on first payment – Cambridge
    “- is worth a Pound of Cure”
    Sharing Best Practices
  • Common Proposal Decline Reasons
    Creditor Needs Increase
    Age of Account
    Recent Activity
    Account Insurance
    Incorrect Client Information
    Invalid Account Number(s)
    Inaccurate Balances
    Misspelled Client Name
    “Promo” Plan
    Sharing Best Practices
  • Accepted Proposals
    Properly implemented plans increase success
    Based on Cambridge Internal data
    Sharing Best Practices
  • Setting Expectation
    Transparency and engagement enhances DMP success
    Full Disclosure
    Benefits, and more importantly
    No room for error (missed payments)
    Inability to secure responsible financing
    Past due accounts
    Reinforce Through Communications
    Support Staff
    Educational and Program Material
    Sharing Best Practices
  • Managing Past Due Amounts
    Sharing Best Practices
    In 2010, 29.8% of common creditor accounts audited during the fourth month of enrollment had some level of delinquency status, even though 98% of the common creditors had all of their benefits in place
    Past due amounts on statement cause confusion and uncertainty about plan effectiveness
    Ways accounts can be brought up-to-date
    Eligibility for re-age through a DMP
    Will be brought current in time
    Additional payments to make up past due amounts.
  • Past Due Amounts on Statements
    Number One reason clients leave program
    Examples of accounts brought current over time:
    Citibank, HSBC, Discover
    Examples of accounts not brought current over time:
    Bank of America, Chase, Capital One
    Based on Cambridge Internal data
    Sharing Best Practices
  • 29
    Video Education Program
    Cambridge developing video campaign to prepare clients for DMP transition
    Sharing Best Practices
  • 30
    Agency Culture: We’re not just a way out of debt…
    Engage clients to actively participate with the program and build savings
    Sharing Best Practices
  • Client Savings Enhance Plan Success
    Sharing Best Practices
  • Faith Based, Credit Unions, other non-profits
    Community Engagement
    Sharing Best Practices
  • Council of Churches of Greater Springfield
    75 member churches.
    50,000 local parishioners.
    Our counselors provide:
    Foreclosure Intervention, Pre-purchase Education, Post-purchase Education, Financial Literacy, and Credit Counseling
    Sharing Best Practices
  • Faith Based Programs
    The faith based community has been receptive to debt relief services
    Community has largely lost faith in debt relief services
    Pastors have the faith and trust of parishioners
    Pastors routinely council parishioners on personal finance matters
    Most pastors are not aware of credit and housing counseling services
    Organization like the Council of Churches exist throughout the country
    Sharing Best Practices
  • Faith Based Outreach
    Cambridge held it’s Hope, Faith, and Healing Financial Forum for clergy and public officials in March of 2011
    Sharing Best Practices
  • Credit Union Collaboration
    Cambridge produced the Credit Union Partnerships video to educate Credit Unions about the benefits of collaborating with Credit Counseling Agencies
    Sharing Best Practices
  • Mission Overlap
    Credit Union Philosophy:
    Seven Cooperative Principles.
    Open Membership, Democratic Control, Member Economic, Participation, Autonomy, Education, Cooperation, and Concern For The Community
    These principles work in unison to ensure the best interests of members are upheld
    Sharing Best Practices
  • Credit Union Collaboration
    Place brochures in branches
    Provide pre-purchase counseling education
    Facilitate Credit Union financial literacy programs
    Provide educational content to members
    What other value can we offer?
    Sharing Best Practices
  • Collaboration and Funding
    Although the NFCC participates in a national venture with the United Way, there are local opportunities .
    Cambridge participates with our local United Way’s Income Stabilization efforts
    Provide expertise into the development of grant making, public policy/advocacy and community engagement strategies.
    Create linkages between housing, workforce development, financial management and basic needs focused on holistic approaches to service delivery
    Sharing Best Practices
  • 40
    Are You Listed In Your Local United Way’s 211 Directory?
    2-1-1 is a free telephone directory, available throughout most of the United States, offering access to health and human services information
    Sharing Best Practices
  • Employee Involvement
    Your employees may have relationships with friends, family, or through alumni associations, and philanthropic endeavors
    Sharing Best Practices
    Our employees serve on boards and advisor committees with agencies and initiatives such as:
    Habitat for Humanity,
    United Way,
    Science, Technology, Engineering, Mathematics (STEM 21),
    Junior Achievement,
    National Association for the Advancement of Colored People (NAACP), and
    Association of Latino Professionals in Finance and Accounting (ALPFA)
  • Creditor policy updates
    Sharing Best Practices
  • Chase CTA
    Sharing Best Practices
    CTA usages varies between 15% to 70%
    Average 35%
    Chase Review
    20 agencies
    20 random accounts
    • Areas of Concern
    Household where spouse unfamiliar with debt
    Business owners use of credit card to fund operations
    High lifestyle expenses
  • New Trends
    Creditor policy changes
    Proposals declined if agency proposes more than client paying on their own
    Citi – One and Done
    If client misses a payment and does not make it up by next payment, they are dropped from plan permanently
    Consider waiting to send proposals until qualified payment is received
    Sharing Best Practices
  • Thank You
    Christopher Viale
    President and CEO
    Cambridge Credit Counseling Corp.
    Sharing Best Practices