Preventative Measures in the Collection Industry – The Customer Service Model v/ Account Write Offs
by Erica Nelson on March 13, 2014
The business community is weighing the benefits of looking for preventative measures for potential accounts receivable versus working past due accounts as a function of credit policy. More and more business leaders are making decisions to find solutions for “Early Stage” preventative measures to recover “potential” past due receivables rather than engaging in third party intervention in later stages. “Write off” is no longer the time frame to place business with third party solution providers.
It is not uncommon for Collection Agencies to be working accounts prior to delinquency or as soon as an account has the most remote concern of moving past due. In most cases when accounts are placed at an early stage the long term results are far more significant regarding liquidation and customer retention.
This is creating changes in the Collection Industry as it pertains to working models and staffing. Staffing requires more of a “customer service” approach. Customers will need to be handled in an appropriate manner when dealing with accounts not yet delinquent or barely past due. No longer are the bully tactics of old acceptable, rather a business conversation is required.
The placement of accounts at an earlier and earlier date of delinquency has been experienced over the past decade, and this trend is escalating at a rapid pace. Businesses are realizing that providing customer service while outsourcing potential /or recent aged business, is in their best interests.
Experience providing recovery solutions for global conglomerates for decades allows D&S involvement in the latest trends and changes in the collection industry.
What are your thoughts about preventative collection tactics and services?