Don McKinley Owner/Founder N3CS, LLC

2015 GCAT Annual Conference – Austin, Texas

Maintaining Control of Perceptions

Defining Excellent Customer Service

Understanding the Customer Profile

Reviewing the six-step collection process

Using Maslow in Collections

Reviewing Successful Negotiation Tips

Understand Common Causes of Delinquency

Offenders? Defendants? Customers?

The Image of Collectors

True or False-

“Collectors continually hassle people who

cannot pay.”

True or False-

“All collectors are the same.”

True or False-

“Tough, threatening collectors are the most

effective.”

Presumption - “Can’t Pay”

Randomly Set Terms

Weak Follow-up

Warrant As Solution

Low Priority - Expectations

Perception - Inconsistent

High Default Rate

Expensive / Can Be Ineffective

Negligent

Confused

Temporary financial difficulty

Seasonal

Unexpected disaster

Deliberate

50%

10%

Identify

Immediately Assume Role & Control

Establish a Serious Tone

Be Organized & Professional

Listen. Allow the customer to speak

Being prepared and informed is critical

Before you call review:

Total amount owed

Past due date(s)

Number of cases or accounts outstanding

How many cases are in warrant status

judgment and violation dates, types of cases

Have any previous contacts been made?

Any previous documentation and outcomes?

What options are available for the customer?

Denial of the Issue

Denial of Responsibility/Ownership

Belief that There is No Solution

Embedded Barriers

Identify the Root Cause Issue

Convince the Customer of Full Ownership

Belief then Development on the Solution

Practical Diagnosis

Examine

reasons why

payment hasn’t

been paid.

Identify the

defendant on

the Maslow

Model.

Define the issue

or problem.

You control the

conversation.

Help Customer Define

Solution

Give Customer

“Credit” for Solution

Listen to Customer

(Said and Not Said)

Most Often Negotiation will be

Used

Levels

Physical Level – My rent is due. How will I feed my children (basic needs)

Security Level – What about my credit/don’t mess with my credit rating

Social Level – Will my neighbors/friends/family find out?

Esteem Level – Do you know who I am?

Self-Fulfillment-Don’t bother me

Negotiation is a process where you

work with the defendant to resolve their

problem.

In most calls negotiation will be used.

When negotiating you should:

Maintain the lead/control of the conversation; Discover insight from the defendant; Show an interest in the defendant; Be organized and focused; The customer will use stalls and objections to

get you off track;

Use specifics in your statements.

Speak in simple terms and clear.

Be positive, friendly and calm.

Never use critical or offensive words;

and,

Remember use “THE PAUSE”.

Phone

Face-to-Face

Letters/Notices

Emails/Texts

Warrant & Arrest

Other Consequences

Understand your goal ( Jail costs everyone). Collections is selling the offender on the

idea it’s in his/her best interest to pay. Be as familiar as possible with the offender-

--his/her situation and needs. Be flexible, know your limits before you

make contact. Be firm and professional, not rude, smart, or

cute. Provide the offender with motive to

cooperate. Understand the difference between an

objection and a condition.

Determine the “Real Problem”

Listen, But Don’t Empathize

Evaluate & Analyze

Consider Options & Alternatives

Avoid Temporary Stop Gap Measures

Look For The Permanent Solution

The three basic appeals when working with customers. To inform or remind the customer you may use: 1) Honesty (always the best policy) 2) Pride (works best for the 3 upper

levels) 3) Anxiety (the hammer of arrest, or

turn over to a secondary collection vendor/lowest 2 levels).

Identify the Customer

Identify Yourself

Request Full Payment

Wait for a Response (The Psychological Pause)

Determine the Issue

Determine the Solution

Close the Deal

Update the Record/File(s)

The Angry Customer The Jerk Customer The Happy/Friendly Customer The Educated/Connected Customer The Crying Customer The Impatient Customer The Sick Customer The Slow Customer The Foreign Customer The Dangerous Customer

They are tired or frustrated.

They are confused or overwhelmed.

They have never been in a similar situation.

They are defending their ego or self-esteem.

They feel ignored, nobody has listened to them.

They may be under the influence of alcohol or drugs.

They don’t speak or understand the language very well.

They have been treated poorly in similar circumstances in the past.

They are in a bad mood.

They have waited an extended period of time.

Defendant says: Meaning: By the way… or Incidentally… phrases to conceal what is said

next-what follows is crucial info. As I’m sure you know… phrases are to shift responsibility to you-persuade you to their side. You are not listening… you aren’t seeing my perspective you will not change your request. You people never… I HAVE BEEN A PROBLEM BEFORE It may interest you to know… trying to divert you from the

issue at hand. I won’t lie to you…or believe me… I will lie to you. Here it comes…

1) Circumstantial-these defendants are unable to handle their fines and fees, due to life issues such as recent loss of job, natural disaster, sickness, or personal injury.

2) Emotional-these defendants usually live above their means and income.

“I want it – I deserve it on my terms”.

3) Intellectual-defendants have the means to pay, but aren’t good with finances/records. May have no idea about their financial situation.

4) Criminal Intent-these defendants use fraud and deceit…never intending to pay. “Know and play the system”. Group is 8-10% of our caseload.

Insurance Unsecured Debt

Luxuries Entertainment

Rent/Mortgage Auto

Utilities Food YOU

PETER PAUL

Keys to Success

• Attitude (influences Behavior)

• Commitment

• Patience

• Resolve

• Tenacity

Thank you for your participation!

Don McKinley

Owner/Founder N3CS, LLC

don.mckinley@n3cs.com