General preparation. Before making your next collection call, take some time to compile a list of debtor excuses and good rebuttals. Write them down on file cards or include them in your computer scripting. Group them by category and keep them handy. Exchange ideas with others in your department. Then you won't be at a loss for words if the customer tries to give you the run-around.

Some typical excuses with good responses:

Customer: I have a cash flow problem.
Collector: How much exactly are you short?

Customer: I don't have a copy of the invoice.
Collector: I'll fax the invoice over right now. Will you be mailing the check today?

Customer-specific preparation. Before making the call, be sure you have the specifics of the debt -- exact amount owed, terms, products/services purchased, due date, back orders etc. It also helps if you know the customer's history with your company. What is their payment record? If they have always paid on time, maybe the invoice was never received, or there's a dispute involved. If payments have been getting slower month by month, it's possible they have a cash flow problem. Or, if every payment has been late, they might not be taking your terms seriously. Whatever the case, knowing the customer before you call will help determine your best approach. And having all the facts at your fingertips can nip delaying tactics in the bud.

Smile and Dial

Your mental state has a strong impact both on how you handle the debtor and how they respond to you. If you were irritated on a prior call, and carry anger into the next one, the debtor is bound to pick up on this and respond to you with irritation. Before picking up the phone for the next call, take a few minutes to calm down. Get things in perspective. Put a smile on your face. Start fresh with each new customer. Your upbeat mood will be contagious.

It's All in the Tone

Most of us take our speaking voices for granted. But the tone, pitch, inflection and even the speed at which you talk can have a powerful influence on your listener. Think about typical news anchors or radio commentators. They have voices that command attention. With a little effort, you can develop one too. Using the following hints, speak into a tape recorder and then listen to yourself. Keep practicing, recording and listening until you get it just the way you want it.

Hints:

don't chew gum or drink when you're on the phone
speak a bit slower, using your lower lip for better enunciation
use a lower pitched voice
pause more often
make sure you pronounce the ending consonants of words and don't slur
again, smile while you are talking

Take Control and Don't Let Go

To a great extent, you can control the debtor's response to your call. Some tricks of the trade:

Address the debtor by name throughout the conversation. This shows respect on your part and demands attention from him.
Make the debtor right, even when she's wrong. This does not mean agreeing with what she is saying, but validating it. When given a ridiculous complaint, learn to say, "I can understand why you feel that way." Or, "I can certainly see how something like that might happen." Validating what the debtor has to say maintains open lines of communication. Understanding their point of view, even as you share yours, will disarm the debtor's defensiveness.
Ask open-ended questions. Try to get the debtor to give you as much information as possible. For instance, bank information is critical, yet many debtors may not want to share it. Instead of coming straight out and asking, "Where is your account?" Try "Will you be sending a check or a money order?" He will usually say "a check." You respond, "That's fine. So we don't miss it, what bank will it be drawn on?"
Listen, listen, listen -- carefully, and make notes. You will get clues to whether the debtor is serious about paying or just blowing you off. You'll also have ammunition for your next call on the account, and be prepared to counter any excuses that may have been tried in the past.
Make good use of silence. Count slowly to five before responding to a debtor statement, and wait several seconds after asking a question. Leaving blank spaces in the conversation compels the debtor to fill them in.
Stay focused. Some debtors will try to get you off track by complaining about service, or somehow shifting the blame to you for their delinquency. Be polite, even validate their opinion. But always bring them right back to the point of your call -- getting paid the money rightfully due you.
Don't be manipulated. A screaming debtor could be using anger as a ploy to get you upset and end the conversation. At the very least, you're not going to get anywhere with someone that mad. If a debtor starts yelling, first of all stay calm. Try reminding them that you cannot help resolve the situation if they are yelling. If that doesn't work, you might say something like, "This obviously isn't a good time for you. When can I call you back?" Or, you could try a tactic one of ABC-Amega's collectors employs. Say, "Could you hang on a moment? I can't understand what you're saying." Put the phone down for several seconds, then pick it up again stating, "I'm back." That few seconds of silence will often calm the debtor down and you can get on with the discussion at a more reasonable decibel level.

Nail Things Down

A call that doesn't result in a commitment from the debtor is a wasted call. If you can't get them to commit to payment in full, get a promise of something -- a partial payment, or a call back with a payment date. Make sure you control the timing. Don't ask, "When can you get back to me on this?" Rather, ask "Will you be calling me by Wednesday?"

Don't hang up the phone without summarizing with the debtor the results of the call. What was their commitment? What are your expectations and what will be the result if they are not met? Emphasize the urgency of the matter. It's easy for the customer to forget your call as soon as he puts down the receiver, especially if they don't think you were really concerned about the outcome.

Stress that the debtor call you back on the date they promise payment -- to let you know the check has been sent. If they fail to call, the payment likely didn't happen. You won't waste time waiting for a check that was never mailed.

And finally, if the debtor doesn't follow through on their commitment, make sure you follow through on the consequences. If you don't, they will never take you seriously.

Be Yourself

Following the above advice should help improve the effectiveness of your collection calls. However, debt collection is not a science. There is no magic formula that will work every time. Debtors are different, and collectors are different. What works really well with one debtor, may get you nowhere with another. And a calling style that produces results for your friend at the next desk, may feel totally out of character for you.

Some very successful collectors manage to get results by breaking the rules. The important thing is to plan ahead, work out a style that fits you, and be flexible.

*****

Bob Tharnish began his career at ABC-Amega in 1978, and has previously held positions at the company that included Regional Manager, Director of International Operations, as well as Vice President roles overseeing Operations, Quality Management and Collection Services. He has presented numerous industry-related talks, including a series of lectures on “Credit and Collections in the U.S.” for the British Department of Trade & Industry. He holds a BBA in Management and is a contributing article writer to the ABC-Amega Communicator newsletter, as well as a member of the Commercial Law League of America and American Management Association professional groups.

Since 1929, ABC-Amega has provided first party accounts receivable collections outsourcing and third party debt collection for managing commercial receivables portfolio. For further information on our receivable management services, email info@abc-amega.com.