In my last article, we discussed the importance of having the right collectors for your DCF dealership. Once the sale or lease is completed, no one will have more contact with your customers than your collectors. If you fail to hire, manage and train the right collectors, it will be very difficult for you to actually realize the profits you generated during the sale or lease of the vehicle. Without successful collectors, cash flow will suffer, perhaps even to the point where your dealership becomes starved for cash and cannot function properly.
In the first part of this article, we listed 11 traits to look for when hiring collectors. It is equally important to evaluate your current collectors for how many of those traits they possess so let’s review them now.
Your collectors should be:
- EMPATHETIC… Your collectors should understand and be sensitive to the debtor’s position but they should still be able to move for “payment in full today.”
- IMAGINATIVE… The effective collector constantly develops better-than-average collection approaches.
- RESOURCEFUL… A good collector has the ability to review a file quickly, yet completely then locate the meaningful points on which to concentrate to resolve the issues causing the delinquency.
- INTELLIGENT… Collectors must be able to quickly and completely absorbs training in policies and procedures and adhere to those policies continually.
- ELOQUENT… An effective collector commands the language. They must be able to communicate effectively and, when talking, makes very few mistakes in grammar.
- ENERGETIC… A top-notch collector moves quickly and with purpose throughout the day, even in the last hour of the day.
- AMBITIOUS… The successful collector desires and expects promotions, at reasonable intervals, when their performance is above average and they have earned it.
- COCKY…A first-class collector is confident and assertive. They are driven to dominate, but do so without arrogance.
- ENTHUSIASTIC… Superior collectors love to collect, to “get on a telephone roll.” They regularly brag about their ability to collect.
- RESULTS ORIENTED… The skillful collector consistently collects more dollars than the average Collector, consistently makes more than average number of phone calls per day and consistently makes more than the average number of debtor contacts per day.
- CONTROLLED… Effective collectors thrive on pressure, or, at least, are not overly bothered by pressure. They are able to control their emotions and remain focused on the task of collecting.
Observe your collectors closely. Discuss each trait individually with your collectors to help both of you evaluate a collector’s strengths and weaknesses in each area. Your training should then be designed to assist collectors in growing in the areas where they are deficient. Training for your collectors should focus on helping them improve in each area where they are weak, improving their job skills and maintaining compliance with company policies and the various laws and regulations related to collecting. There is an old saying, “Training doesn’t cost, it pays’ and this could never be any more true than it is for collecting. Training pays with improved results and better cash flow and failure to train could cost you your entire operation if not done effectively or legally.
Competent collectors are not easy to supervise, because each has his/her own ways of attacking an issue; however, competent collectors are easy to manage, when you let them pursue entrepreneurial instincts within your policy guidelines and the law.
Counseling Collectors
Explain the acronym “IDEAS” to each of your Collectors.
“I” = Intelligence.
Intelligence is the ability to read, listen and absorb and then to act, when collecting, on that which was learned.
“D” = Drive.
Drive is the desire (followed by action) to succeed as a collector.
“E” = Eloquence.
Eloquence is the ability to express intelligent thinking by writing and talking (the only two ways collections can be made).
“A” = Attendance.
No definition needed. But, no matter how competent the collector, it doesn’t count if they are absent.
“S” = Social Ability.
Social ability is the talent of being able to collect in full and not offend the debtor.
Ask each of your collectors to “add value” every month to one of the five IDEAS. Ask each to report to you every month exactly how they added those values. Help them in developing those ideas and share them with their fellow collectors as part of your on-going training program. The collectors who follow this program well may give you “ideas” about their future with your dealership. Those who don’t go along may just give you ideas about their future, as well.
Standards of Collectors’ Conduct
Collecting, when performed properly, is a highly professional skill. So, help your collectors establish high standards of conduct. Try the acronym “DECK:” Dignity… Eloquence… Competitive… Knowledge.
Dignity comes in two parts: (1) The collector’s own dignity manifested by his/her ability to remain calm under emotional conditions, and (2) the dignity of the debtor. The collector earns his/her PHD (Preserve Human Dignity) by responding to colorful words and phrases with firm payment demands, but in a calm and professional manner. Demeaning or belittling the debtor will never produce positive results. Getting in an argument with the debtor will not produce the results you desire either.
Eloquence is mastery of the language. Collecting is performed with only two skills: writing and talking. Improve your language skills to master the language and dominates without arrogance. This doesn’t mean using the largest words you can find and trying to intimidate the debtor with your skills; however. Remember, the goal is to effectively communicate with the debtor. Structure your argument logically to convince the debtor to pay now and focus on how it benefits the debtor to pay today.
Competitiveness means the collector must be, and must know he or she is, better than all those other collectors from other organizations contacting the debtor. Knowing that the demand for a debtor’s money may be great, your collectors must believe they can succeed in getting your debt paid where other will fail.
Knowledge means the collector will know your organization and its policies and procedures and be well-versed in the regulations that apply to collecting. They will have the knowledge necessary to feel confident they will be able to solve any problem or complaint without transferring the call and then be able to collect the amount owed in full.
Tell your collectors to strive for perfection, to reach for the stars. They may not quite reach one, but they won’t come up with handfuls of dirt, either.
When your collectors believe they’re competent, they will then become competent. That competence will appear in your dealership records in the form of increased money collected and lower delinquency. Utilize these tools to improve your collection staff and you’ll be managing an outstanding group that produces increased cash flow for your Buy Here – Pay Here or Lease Here – Pay Here dealership.
