“The best way to learn facts is by failing” – unknown
If you are doing your own business debt collecting, you might be surprised to learn the following facts from the inside debt collecting industry.
- 20% of your clients/customers make 80% of your debt collections – this is a well known Pareto Principle.
- As a creditor, SMS text messages are the preferred way of cash collecting.
- Your business can increase collections by 12+ % by using SMS and e-mail communications with your client/customers. Of course, these methods need be used with care and properly – claims Michelle Dunn – a well known expert in the wide field of debt collections in America.
- Both, SMS and email messages are perceived as less evasive than a phone call.
- A simple “Please pay your invoice by” or “Thank you for your business” can increase the percentage of invoices that are paid by more than 5 %.
- The average American has eight credit cards or loans, and there are over one billion credit check reports issued annually – claims the American consumer Information Centre.
- According to the same source, 2/3 of the American economy is driven by consumer spending. Outstanding US consumer credit in 2011 totals $1.7 trillion.
- Direct Response Marketing campaigns usually produce a very high rate of debt delinquency, which will affect the business, should the business not have a proper credit control system set up prior.