Queue management
After segmenting the customers and adjusting the collection process to the nature of the customer, we must define priorities for collection from overdue customers. This is a classic “queue management” problem. The queue can be divided into two main groups: a) normal priority group according to pre-defined criteria; and b) higher priority group, bypassing the queue, which will receive treatment before everyone else.
Work management methods for managing such queues are presented in detail in the section which deals with collection management tools. There we introduce work management in the WIP process and through a focus matrix.
Frontline or specialist contact center
This is a general issue of customer care and not necessarily a special issue of collection – should the service representatives who respond to the customer on the first line (Frontline) have the financial capabilities to provide a full response to the customer under his expectations during the first call (One-Stop-Shop or FTR – First time right)?
The customer should complete the phone call process in one go. However, when the customer refuses to pay at the initial stage, collection skills (sales skills?) and assertiveness are required which are not among the qualities that characterize the service representatives on the first line, who are supposed to put the quality of the service at the top of their minds.
The solution should consider the nature and capabilities of the service system and the ability of the training system to support representatives in real-time.
Crediting customers – in the “frontline”, “second line” or “back office”?
A difficult issue is whether to give crediting credentials to first-line representatives according to a predetermined crediting procedure or whether to require them to transfer the customers to a “second line” (specialist agents) or to register their application so that it can be checked by the “Back Office” team, which is a unit separated from the first line, performing administrative work after the call is over?
We believe that in most cases, there is more benefit in providing appropriate training and as much authority as possible to the first line, to make it easier for the customer. The conduct of the representatives can be controlled retrospectively through appropriate reports and an issue of control and supervision must not be turned into a detriment to customer service.
Private customers versus business customers
Collection is a service!
Did we say that already? We will probably repeat this many more times. Collection is first a service and besides the goal of collecting money for the organization it is an essential tool for customer retention.
According to this definition, as the service provided to business and private customers usually has a different nature – it is not appropriate to collect from business and private customers in the same way.
Collection from private customers is a more systematic collection, which can be performed in simple repetitive automated steps. Understanding the customer’s billing and outstanding balance is usually relatively simple to understand for both the collection representative and the customer. Private customers are used to paying their bills with standing orders or credit cards, and the amounts are usually relatively small. Regarding private customers, it is possible to build simple models of statistical prediction of debt formation and debt collection.
On the other hand, business customers require special attention from us following their customer service expectations. A large and important customer for the organization will expect to receive collection treatment according to its importance and status. In these cases, any deviation from the customer’s service expectations can lead to losing the customer.
The question also arises – if the customer is used to receiving service from a personal service representative, is not this representative the most suitable to carry out the collection? In general, we will try to adjust the nature of the collection from the customer to the nature of the service that the customer is used to receiving. This is not only expressed in the separation between a business and a private client because a private client who holds a senior position in a large business company will expect to receive the treatment to which he is accustomed as part of his work. Also, even for some important private customers, we will sometimes want to weigh the size of the transaction and the importance of the customer to the organization, before determining the collection policy towards him.
Collection contact center employee profile
Below are the qualities required in our opinion for a collection agent:
Assertiveness
The word describes, in this case, a behaviour that has two characteristics: on the one hand – activity aimed at preserving and respecting the customer’s rights while taking a firm and opinionated position. On the other hand – avoiding hostility, rudeness or verbal violence that ignores customers’ rights.
Serviceability
It is not possible to collect funds without a clear concept of service. Even if most of us don’t like to pay, most of us will eventually pay if we receive a sensible and polite response from the collection agent to all our demands and questions.
Patience, empathy and tolerance
A debtor customer sometimes does not pay, as an act of protest for a service he did not receive, for a defective product or for any other failure in the sales process. In such a case, the customer is angry, and his response to the call might be initially aggressive. The agent must understand well that this is not a personal matter, let the storm pass and only then perform his duty.
Ability to manage negotiations.
Collection from a customer is very similar to sales: one must be attentive to the customer’s needs, satisfy them and ultimately close the deal and make sure to receive the sales product. Often, good employees in collections have a background in sales.
Methodology
A large part of the collection procedures are not resolved in the first call. That’s why the collection agent has to simultaneously conduct many collection procedures for many different customers. Without a systematic approach, it will not be possible to collect it efficiently. In larger organizations, the Collection manager must set up a task management system to allow the agents to follow up on their tasks and sometimes transfer them to specialists.
Optimism
Yes, to start the day assuming all customers are eager to pay…in full… today…
Dynamism
Yes, it always appears in job ads, no matter what that means and what the role is…
Collection contact center employee job offer add sample
Creating a compelling job profile for a Collection Contact Center Employee is key to attracting the right candidates. Here’s an example that you can use as a starting point or inspiration for your job offer ad:
Position: Collection Contact Center Employee
Location: [Your City, Your Country]
Job Type: Full-Time/Part-Time (as per your requirement)
About Us: At [Your Company Name], we are committed to excellence in customer service and effective solutions in debt collection. Our team is the backbone of our success, and we pride ourselves on a professional, empathetic approach to collections.
The Role: As a Collection Contact Center Employee, you will be at the forefront of customer interactions, handling inbound and outbound calls with a focus on recovering debts while maintaining a positive customer experience.
Key Responsibilities:
- Manage a large volume of inbound and outbound calls with efficiency and courtesy.
- Follow communication scripts when handling different topics.
- Identify customers’ needs, clarify information, and provide solutions or alternatives.
- Keep records of all conversations in our call center database in a comprehensible way.
- Meet personal/team qualitative and quantitative targets.
Requirements:
- Proven experience as a call center representative, collection agent, or similar role.
- Strong phone and verbal communication skills, along with active listening.
- Familiarity with CRM systems and practices.
- Customer focus and adaptability to different personality types.
- Ability to multi-task, set priorities, and manage time effectively.
- High school degree or equivalent; higher education is a plus.
We Offer:
- Competitive salary with performance bonuses.
- Opportunities for professional development and career growth.
- A supportive and dynamic work environment.
- Comprehensive training program.
How to Apply: Please send your resume and cover letter to [Your Email Address] with the subject line “Collection Contact Center Employee Application”.
Deadline for Application: [Insert Date]
[Your Company Name] is an equal opportunity employer. We celebrate diversity and are committed to creating an inclusive environment for all employees.
Training
Beyond the professional knowledge, skills and training that collection workers receive. in order to professionalize their activities – working through collection centers requires a specific training set adapted to the needs of the center and its employees. These are additional pieces of training on customer service awareness, managing a conversation with him and retaining the customer; Specific training on handling the call center during shifts, response times, and agenda (how much time to devote to each task); The skills of the operational system of the collection operations carried out at the center: connecting and disconnecting, crediting, deletions, transferring clients to legal treatment and more.
Creating a comprehensive training program for collection center employees based on the specified needs involves several key components. The goal of this training is to enhance customer service, improve call center management, and ensure proficiency in the operational system of collection activities. Here’s a structured outline for such a training program:
1. Introduction to Collection Center Operations
- Objective: Familiarize employees with the overall function and goals of the collection center.
- Content: Overview of the center’s role, services provided, and importance in customer relations.
2. Customer Service Awareness
- Objective: Develop skills for effective and empathetic customer interaction.
- Modules:
- Understanding Customer Needs
- Empathy and Active Listening Techniques
- Resolving Conflicts and Handling Difficult Situations
- Building Long-term Customer Relationships
3. Call Center Management
- Objective: Equip employees with skills for efficient call center operation.
- Modules:
- Managing High Call Volumes
- Adhering to Response Time Standards
- Shift Management Strategies
- Task Prioritization and Time Management
4. Operational System Skills
- Objective: Ensure comprehensive understanding and ability to manage collection tasjs.
- Modules:
- Connection and Disconnection Procedures
- Crediting and Deletion Processes
- Transferring Clients for Legal Treatment
- Data Entry and System Navigation
5. Advanced Communication Skills
- Objective: Enhance employees’ ability to manage conversations effectively.
- Modules:
- Advanced Conversation Techniques
- Persuasive Communication
- Building Rapport with Clients
- Negotiation Skills
6. Practical Exercises and Role Play
- Objective: Provide hands-on experience through simulated scenarios.
- Activities:
- Role-playing Different Customer Interactions
- Simulated Call Center Environment
- Group Discussions and Feedback Sessions
7. Evaluation and Feedback
- Objective: Assess employee proficiency and provide constructive feedback.
- Methods:
- Written Exams
- Practical Demonstrations
- Peer Review
- Trainer Feedback
8. Ongoing Training and Development
- Objective: Ensure continuous improvement and adaptation to new challenges.
- Approaches:
- Regular Refresher Courses
- Updates on New Procedures and Technologies
- Mentorship Programs
9. Certification
- Objective: Officially recognize the successful completion of training.
- Outcome:
- Issuance of a Certificate of Proficiency
This training program should be adapted to the specific context and requirements of the collection center, considering the unique challenges and customer profiles they handle. Regular updates and feedback mechanisms are essential to keep the training relevant and effective.
Enhancement of customer data
A good collection process starts with a reliable database of current and up-to-date data on the customer:
The customer’s details must be accurate (postcode or postal code, address, phone). Otherwise, the demand letters will not reach their destination and the calls will be directed to the wrong party or it will not be possible to contact the customer at all. Beyond the commercial importance of being able to truly engage with the customer, it is important to prepare for the future and the existing possibility of conducting legal proceedings against the customer. Usually, the customer’s ID number is not necessary information at the beginning of the relationship with the customer. But in cases where the customer “disappears” and leaves behind debts, knowing the ID number is essential for locating him.
Sometimes, a customer who “disappeared” will appear in various databases a few years later, and if the debt statute of limitations has not passed by then, it will be possible to collect the original debt from him along with interest, tracing expenses and legal fees.
Consolidation of customers’ accounts: sometimes, a customer is “placed”, or appears, several times in the organization’s system. This unwanted phenomenon can be due to technical constraints, lack of attention or negligence. In these cases, it is of great importance to consolidate the customers’ accounts before starting the collection procedures. This will prevent us from contacting the same customer several times or conducting duplicate legal procedures. Also, it is possible that a customer who owes money under a certain identification, accurately pays his debts under the correct identification. In the case of legal proceedings, a problem of non-unification may result in a certain debtor not being sued for two small amounts, but if we had known that it was a larger consolidated debt, we would have continued to legal proceedings (see the next section on managing legal proceedings). Also, we might sue the same client through two different lawyers by mistake, and this will entail double expenses and give the client the possibility to postpone hearings on the grounds of duplication of procedures.
The collection contact center as an extension of the finance department
By definition, the finance department is in charge of the organization’s cash flow, and consequently the organization’s total liabilities. The finance department employees are usually very focused when it comes to the area of collection, but the area of customer service is not a main area of specialization for them. In contrast, a customer service department is less focused on cash flow and collection issues but controls customer service processes and usually customer retention techniques as well.
The result that emerges from this equation is that in large organizations that serve a very large number of customers, it is better to let customer service do the collection. However, because of the difference in targeting, it might be preferable to allow the finance department to decide on collection targets and procedures.
One of the prominent debates in this area is whether to limit the finance department’s power to determine the collection targets to be carried out by customer service or whether the finance department should be allowed to manage the collection operation, that is, decide on sending letters to customers, freezing customers and more.
There is no one truth and one proven solution to the issue, and the alternatives to the issue must be carefully examined and the optimal option chosen at the general management level.
Blacklists
This is a common topic in departments in the field of collection. The driving principle here is to collect information on customers who refuse to pay to prevent any contact with them in the future, or at least to identify them to settle for cash sales only.
However, one can raise many justified objections to such a move:
- Failure to pay on time that occurred in the past does not usually affect the future. A customer who owed several invoices in the past and wants to work with the organization again is not necessarily a “serial criminal”. Circumstances change, the client’s financial situation changes, and there is no unanimity that we would never want to acquire him as a client (all this assuming that this is not a client who has carried out a “sting” exercise against the organization in the past).
- Blacklists can be easily bypassed. A married customer can make the new purchase in the name of his wife or partner, children, parents or any other collaborator.
- A considerable effort could be required to maintain such lists, to update and upgrade them. And you must consider whether the cost does not exceed the benefit.
- It is usually very difficult to indicate the extent of the “repetitive crime” and therefore it is difficult to prove the feasibility of managing the blacklists to the management, especially when the sales and marketing departments are usually strongly opposed to it.
- A blacklist requires a unique identification of the client. And such verified identification is not always available in the organization’s databases.