It is our job as 'consultants' to find out why they're not renewing on time, not
just react when they don't.
Your greatest ally in collections is not the persistent calls, It's the "relationship"
By: Shawn Sparks (bio)
Gen-X of RTO
Somewhere in your store, there
should be a banner that reads "It's the relationship stupid!"
Never tolerate the judging of a customer based solely on the
past due list in which they reside. To make judgments without
regard for history is foolhardy. All too many associates take
the easy way out and assume that since Mr. Smith is 30 days
non-renewed he must be a bad customer.
The attitude that a past-due-list, which is at best a snapshot,
is a reliable indicator of an individuals overall value as a
customer is RTO version of intellectual laziness.
Every Relationship is Unique
Each customer has a different set of issues and a unique history with your company. It is our job
as "consultants" not collectors to find out why they're not
renewing in a timely manner, not just react when they don't. The
traditional view is that this customer has entered the
'forbidden land of delinquency' and can never be washed of
their sins, right...Wrong!
I believe that fewer than 1% of customers enter into a rental
agreement with the intention of not renewing. If a customer does
not renew, there is a reason. It
is our job to find out why.
|"Customers sometimes leave "on
time" land to explore the realm of the 4 weeker. But I promise
they will return. Its our job to show them the way"
So, the next time you review your lists with fresh-from-training
convinced that 7 days past due is 7 days past due regardless of
the circumstances...here are a few things to consider.
1. Have they made the last 6 payments on time and now
A quick glance at the merchandise may be the answer. If its an
electronic device or an appliance, perhaps they are unhappy
with the performance, or they have a service problem and, based
on an experience with another RTO company, assume you won't take
care of the problem. You'll never know unless you ask.
2. Are they having temporary financial difficulty? Are
they too proud
to ask for an extension even though they may be entitled to one
according to the agreement? Understanding their problem can make
a customer for life.
3. How long have they been a customer? Have the failed to
renew before? Will pick-up, if it comes to that, be a problem?
Your greatest ally in collections is not the persistent calls,
the myriad of letters that in our paper arsenal, or even
a super hard knock at the door. It's the "relationship".
your customers really do become numbers, and I promise you, they
will not be the
numbers you want.
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