What are the 4 best collection techniques to improve your team's performance?

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As we have already mentioned, adopting good collection techniques is one of the pillars for good performance in this important sector. With this in mind, we will detail the best ones so that your team is prepared to deal with defaulting customers in the best possible way and achieve success in negotiations. Check them out!

1. Know your audience profile
Just as the approach at the time of sale must be different, companies that germany phone number list with legal entities must adopt different collection strategies than those that only do business with individuals.

Typically, collections made from individuals require more formal procedures, which includes the tone to be applied in the approach, seeking to negotiate outstanding amounts.

Other specific aspects of getting to know the target audience better include the time the debt has been overdue, the amounts outstanding, the product or service that generated the debt, and information about what was agreed upon when the deal was closed. Each situation requires different approaches, which can be separated into categories.

2. Take a respectful approach
This is perhaps the most problematic point in the relationship between creditors and defaulters: the way in which the contact to inform them of the debt is made. If it happens abruptly, the approach can generate intimidation or embarrassment.

This can have negative consequences for the company seeking to recover its credit, since a customer who feels offended has the possibility of seeking legal redress. In addition to the financial loss caused by this, these occurrences cause damage to the business's image, making it difficult to attract new customers.

A good part of a respectful approach involves using language that is consistent with the situation. It should be friendly and understanding, without compromising the rigor required for the situation, and always being as direct as possible.

As much as it is often said, the tip of putting yourself in the debtor's shoes is always valid. This helps you understand the reasons that led to the delay and provides the assurance that contact is being made to seek a solution to the problem. Keeping the debtor informed about the consequences of the delay is also essential.

Staying calm, not being pushy, defining which channels will be used to contact you, and doing so only during business hours are some of the other recommendations for those who don't want to invade the defaulter's space and cause discomfort. Establishing a so-called communication rule and working with omnichannel call centers help a lot in these matters.

3. Expand payment terms
After understanding the defaulting customer's situation and the reasons that led to the delay, it becomes easier to offer proposals so that the customer can settle the debt within their means. Therefore, it is important that the collections department is always open to negotiation .

The recommendation is to offer discounts on interest and fines to customers who choose to regularize their situation by paying in full. A valid alternative involves offering installment options to make it easier to pay off the debt.

To minimize losses, it is recommended to establish guidelines on the limits for these negotiations according to each situation. Sometimes it is worth receiving only part of the payment compared to the prospect of receiving nothing under other conditions.

4. Track customer history
Keeping track of a customer's history helps you understand the reasons behind the delay and how to approach it. In the case of customers who have always paid on time, a delay may be due to a simple oversight or an unforeseen event. In situations where delays are frequent, the warning light should be turned on to try to better understand what is happening.

Most of the collection techniques presented in this post can be implemented in your department through ongoing training. However, there are companies on the market that specialize in this type of service , with all the necessary training to achieve the best results.