“Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like” – Will Smith
The Holiday Season tends to lure us all into getting into more spending and debt. Big-item buying and unplanned spending is as bad for personal as it is for business finances. Festive Season has the magic of making us all a bit merrier and light-handed when it comes to shopping, parties and Christmas gifts, but most of the time the headache from unnecessary debt comes “the morning after”.
No matter how generous and ecstatic you feel, think twice before putting another item in your Christmas shopping cart. You can’t avoid Christmas spending, but you can surely avoid putting yourself in a financial predicament that could lead to cash flow problems due to more debt as you start the New Year. (more…)
“Discipline is not the cage, discipline is the key.” – Denver M Lane
Debt Collecting Techniques
Have you ever heard of the 20/80 rule?
It is basically a rule that shows that eighty percent of the output comes from twenty percent of the input. This is the Pareto Principle, or as it is more commonly known, the 80/20 Rule.
It has been proven over and over that the rule DOES work. (more…)
“The secret of many a man’s success in the world resides in his insight into the moods of men and his tact in dealing with them.” – JG Holland
Continuation of “Essential Debt Collecting Skills – Negotiating” (Part 3)
Negotiating is a necessary life skill we all have to some degree. It enables us to achieve the best results for both ourselves and the other person. Unfortunately in lots of businesses negotiation is an area that is often neglected, but that can improve a firm’s profitability as well as its standing in the eyes of its clients. This continuation of negotiating tips has been written to provide guidance in negotiation skills to debt collectors, but it is also a general guidance in everyday life negotiating. So, what are some other principles worth using in negotiating? (more…)
“Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.” – Peter Drucker
Continuation of “Essential Debt Collecting Skills – Negotiating” (Part 2)
‘Since negotiation is the process we use from infancy until just before we die, the issue is not a matter of recognizing that negotiation is a fundamental life skill. The real goal should be to understand how to negotiate effectively to reach wise solutions to all kinds of issues. (more…)
“I’d like to add that negotiating is not something to be avoided or feared – it’s an everyday part of life.” – Leigh Steinberg
Continuation of “Essential Debt Collecting Skills – Negotiating” (Part 1)
Negotiation is a rather complex interaction. Capturing and controlling all its complexity is a very difficult task that requires knowledge, understanding and lots of practice. Below are some of the essentials of negotiating:
Having a clearly defined goal before you start the process of negotiation is a must. At first, it really helps if you write it down and keep it somehow visible for yourself. Later, when you get more practice and experience this would come naturally as the first step. (more…)
Observing a Master Negotiator at work … is an ‘Art Form’. But, did you realise YOU could EASILY become one yourself?
NEGOTIATION is an essential skill in our everyday interactions. We daily use it in all areas of our life without even realising it. Some people are naturally better negotiators than most. But negotiation is a skill that all of us can learn to master if we put an effort into it.
Becoming a master negotiator will help everyone generally in life, but especially in business.
The role of effective negotiation cannot be underestimated in the debt collection. Debt collecting requires you to become a master negotiator and master the skill of finding a win-win situation that would make your client happy to pay you, and to pay you as soon as possible. (more…)
“In this new wave of technology, you can’t do it all yourself, you just have to form wise alliances” – CS Helu
‘Collecting debts in the current financial environment can be an expensive and time consuming process. Thanks to innovative communications technologies developed here in Australia, there are tools available to automate most facets of the collections process. Using automated telephone and SMS based channels helps to lessen the hard labor cost needed to get in touch with all the outstanding debtors you might have whilst fulfilling your obligations under the Australian Consumer Credit Code.
Consider how much time and money you may have spent trying to reach your debtors—costs that take away from your overall profit. (more…)
Dealing with customers on the phone is arguably more difficult than dealing with customers in “face to face” situations. This short training telephone skill video will provide practical tips and techniques to support your staff in dealing with some of the demanding and awkward situations they must face in dealing with angry customers.
“Customer service is not a department, it’s an attitude!” – Unknown
This is the 2nd part of the article, read our first blog post as an introduction…
A good debt collector knows that the “Carrot and Stick” approach also works with customers. So, how does this technique work in debt collecting?
The previous post was about the “Carrot”.
Now, the “Stick”: (more…)
“Being on par in terms of price and quality only gets you into the game. Service wins the game.’ – Tony Alessandra
If you want to make things happen the ability to motivate yourself and others is a crucial skill. Smart businesses use motivation to get results in their debt collecting. Motivation requires a delicate balance of communication, policy and incentives.
At the same time, if you want your customers to pay up consistently and on time, you have to have the ability and techniques to make them want to avoid the negative consequences if they do not pay debt on time. (more…)