How to plan and control late collection telephone calls
The Statement-Response-Rebuttal approach to telephone collection (see previous page) will improve cash flow. However, after two such calls, the Collector has pretty much run the gamut of its effectiveness. Another call on that approach would merely draw the same excuses, a wasteful repetition of history. Now is the time to use the late-collection technique.
Plan this call with the acronym "SPRA." Means Situation... Proposal... Reason... Action. Plan the call with a few key words answering these questions:
- What is the situation here? That gets right down to business.
- What shall be the proposal to the debtor? Be very specific in proposing.
- What is the best Reason why the debtor should do what the Collector proposes? IMPORTANT: The reason must come from the debtor's viewpoint.
- What Action is desired? Action is the payment commitment you want the debtor to make. Know the commitment you want before phoning. "If you don't know where you're going any road will get you there..." and will elongate the discussion. The second part of Action is what the Collector will commit after the debtor commits. Normally, that's the Collector's follow-up plan.
After completing the SPRA call, follow up to make sure the debtor keeps the commitment made... and, of course, the Collector must follow up according to his/her commitment.
The SPRA call should rarely exceed one minute. You'll like your improved cash-flow batting average from this approach.
