The document discusses challenges in credit and collections, including a scarcity of credit information, more sophisticated customers, and legal systems that favor debtors. It emphasizes that collections should start when an account is opened, not when it becomes overdue, in order to establish clear rules and expectations between the parties. A proper opening establishes half of the collection process. The document also outlines the key stages in collections - informative, reminder, discussion, and recovery - and stresses the importance of having a plan and developing key skills like communication, assertiveness, and problem-solving to improve collections success.

1. The Telephone Collection Workshop Top Performance Inc./Credit In Canada October 2005

2. The Changing Face of Credit

3. The Changing Face of Credit Scarcity of solid credit information

4. The Changing Face of Credit Scarcity of ongoing credit information More sophisticated customers

5. The Changing Face of Credit Scarcity of credit information More sophisticated customers Better educated

6. The Changing Face of Credit Scarcity of solid credit information More sophisticated customers Better educated “Customer-power”

7. The Changing Face of Credit Scarcity of credit information More sophisticated customers Better educated “Customer-power” Legal system and costs tend to favour debtor Other creditors taking precedence

8. It’s Safe To Say That Delinquency Isn’t Going Away

9. Wishing and Hoping Won’t Cut It It’s going to happen – one customer at a time

10. What Hasn’t Changed? Time – the day is exactly the same number of hours Not much automation in billing/collections Mistakes in billing are compounded by automation (computers are stupid!)

11. Question? Has it simply become good business for some customers to pay on their own terms or wait until suppliers call?

12. Question? Has it become good business to for customers to pay on their own terms or wait until suppliers call? In other words, terms of sale move from contractual terms to tolerated terms

13. “My job is to manage my payables – not manage your receivables” “I decide – should I pay late? If so – how late?” - A Controller in Kingston

14. Problem Areas No real agreement – more implied or by conduct The creditor doesn’t know why – the blurring of “willing and ability” The fear, real or perceived, that if pushed, customer will go to competitor

15. What We Need To Do Become better communicators Target solutions rather than take a shotgun approach – “willing it” won’t make it happen Work on recurring problems Reduce risk by becoming more credit-conscious – work on financial info Reduce risk – at least in time

16. Wouldn’t It Be Nice To Know? Did the customer receive our invoice? Did the invoice match their purchase? Was it approved by their buyer? Have they scheduled invoice for payment? What is the payment schedule date? Are they going to deduct a portion – why? Do they have enough money to pay? Have they paid? When?

17. The best collection techniques are the preventative ones

18. When Does Collections Start?

19. When Does Collections Start? When account goes overdue?

20. When Does Collections Start? When account goes overdue? When account is opened or sale is made?

21. Collection of Accounts Starts When they go overdue When you get around to it When the bill is sent When the account is opened

22. Positioning Starts When Account Is Opened An account properly opened is half-collected

23. Positioning Starts When Account Is Opened An account properly opened is half-collected The establishment of the rules, the needs of the parties and agreement as to how exceptions will be handled

24. Positioning Starts When Account Is Opened An account properly opened is half-collected The establishment of the rules, the needs of the parties and agreement as to how exceptions will be handled It is not unlike trying to train a 10 year old dog – very difficult – better when the animal was a puppy

25. A Breakdown of Process 1. Opening accounts

26. A Breakdown of Process 1. Opening accounts 1.1 Informative stage

27. A Breakdown of Process 1. Opening accounts 1.1. Informative stage 2. Reminder stage

28. A Breakdown of Process 1. Opening accounts 1.1. Informative stage 2. Reminder stage 3. Discussion stage

29. A Breakdown of Process 1. Opening accounts 1.1. Informative stage 2. Reminder stage 3. Discussion stage 4. Recovery stage

30. Reminder Stage Invoice confirmations Pre-reminders Do early ? ?

31. Discussion Stage Moves from 1 way to 2 way communication

32. Discussion Stage Moves from 1 way to 2 way communication Very different skillsets - assertiveness - integrity - credibility - problem-solving abilities

33. Number 1 Reason For Lack of Success No Plan

34. Instead What Customers Often Get Apologetic/timidity Training that it’s OK to wait until you call – the telephone call is just an invoice notice Sometimes different stories Occasionally confrontation/aggressiveness Being placed on hold without notice to buyer

35. Some Other Observations No one aspires to do collection work. Backgrounds/experience and education rarely apply Very few of us had any training other than “battleground experience” or through peer training And… that is not an issue when the collections are routine. Most people have good motivation and desire to other areas

36. Observations 2 Desire and motivation are not skills Some people bring some natural ability in more than others but… Natural abilities will only take a person so far When we add an increase to workload and new tasks, it becomes obvious that training will help you when your charisma runs out.

37. Evidence of Average Calling same people over and over each month When there are more than 3-4 staff, why are some better than others? Lots of “coasting is evident” 10 years experience is usually more like 2 years of experience multiplied by 5 years of time

38. Building A Call Preparation Anticipation Practice

39. Having Reasons Why Why should I pay?

40. Three Approaches Direct Assumptive Indirect (with border)

41. Dealing With Concerns/Objections/Stalls Use tie-down Probe to clarify Go to alternative plan

42. Payment Plans Get in writing Keep them short Remember there are other creditors Perhaps think settlement – talk over with boss

43. ‘The secret of success is to do common things uncommonly well.’ – John D Rockefeller

44. Be The Best! :

46. Needs Analysis Results should be a game plan to be the best Being Five Star is not an accident Every customer contact point has been analyzed, time managed and recurring issues dealt with.

47. Instructional Method: Case Study

48. What Do They Want? Options such as easy ways to pay Help if they need it Going the extra mile Single-source for information (or at least the same story) Building a relationship is based on respect and mutual effort – it takes time and effort

49. Key Skills Checklist How well do you communicate with customers? Does someone “talk money” with new customers ? Do you attempt to train customers or are they training you? Do you have a plan to decrease delinquency one account at a time? 5. Do you consider yourself pro-active or re-active?