Press Release | June 5, 2011

If you haven’t heard about the above article in the July 2011 issue (page 16), you will very shortly.  Pick up a copy!  It names the best and worst companies in 21 different business categories (hotel chains, on-line retailers, phone companies, tech support, etc.) from three years of subscriber surveys.  If you work at one of the companies under the “worst” column, this is a wake-up call that presents an opportunity to make the changes that you’ve wanted.  Even if your company isn’t listed, please continue reading to be sure that you are not on the list next year.

In my opinion, here are actions that should be taken immediately:

Abide by the “GetHuman standard” if you haven’t already done so.  This is a specification for how customer service phone systems and support should work.

Review and update your agent incentive program.  Focus on a few, high level metrics: reducing early-stage turnover, improving attendance (tardiness/absenteeism/adherence), improving sales (conversions, win-backs, etc.) and use call quality as a condition of participation in the incentive program.  Over the long run, only one third of incentive programs produce positive results.  The other two thirds are evenly divided between those producing negative results and those that aren’t monitored.  When did you last review your program and in which third does it stand?

Your incentive program should be continuous and follow four tenets: reward the daily homework, make work fun, pay immediately, and provide choice of rewards.  A well designed and managed Incentive program should improve KPI’s by 20% to 40% almost immediately.  You should spend about two hours worth of labor cost per FTE per month on your incentive program (that will provide an ROI that will make even the most tight-fisted CFO smile).

Attend a one hour webinar by Aubrey Daniels Ph.D.  “Using Positive Reinforcement to bring out the Best in People” on Thursday, June 9^th at 1:00 PM (Eastern Time).  There is no cost to attend but space is limited.  More information and to register: http://www.snowfly.com/Blog/post/2011/05/10/Upcoming-Webinar-Using-Positive-Reinforcement-to-bring-out-the-Best-in-People.aspx

Want to learn more?
Snowfly is the leading provider of Internet based employee incentive and loyalty programs.  Snowfly’s incentive system allows clients to harness the enormous motivational power of immediate positive reinforcement to focus employee behavior on company objectives.  Compared with home-grown programs, Snowfly significantly improves KPI’s almost immediately, reduces a huge administrative burden and reduces costs.  The results are easily seen within weeks and there is no long term contractual obligation.  Customers include multiple Blue Cross/Blue Shield providers, Hyatt Hotels, Time Warner Cable, financial institutions, utility companies, cable/satellite providers, various BPO companies (business process outsourcers), and collection departments/agencies.   Snowfly’s web site: www.Snowfly.com.  For more information, contact Snowfly at 1-877-SNOWFLY (766-9359) Robert Cowen at extension 709 or email rcowen@snowfly.com, Ryan Fabian at extension 710 rfabian@snowfly.com or Tyler Mitchell at extension 707 or email tmitchell@snowfly.com.

THE LESSON

Negotiating is a part of life. Although we might not realize it, each of us uses negotiating skills many times each day. We negotiate with our spouse when deciding what’s for dinner and with our kids when it is time for chores. Sometimes we even find ourselves negotiating with our neighbor over which lawn her Teacup Yorkie should be using as the bathroom.

Another thing that we might not realize is that we use a certain type of negotiating style based on our concern for the outcome of the conversation and our concern for the relationship with the other party. (I recently wrote about these two concerns in my post Two Reasons You Can’t Afford to Overlook Negotiating Styles.) There are five negotiating styles: Defeat, Withdraw, Accommodate, Compromise, and Collaborate.

As collection professionals, we negotiate more than most. It is what we do. It’s how we get paid. In a given day, we might find ourselves negotiating with dozens of consumers for payment. Sometimes these conversations are easy, sometimes they are downright difficult.

The better we are at negotiating, the more likely a decision will be reached in our favor. The more ineffective we are, the more likely it is that Princess will continue to use our front lawn.

Since we want to collect more money, close more deals, and keep Princess on her own turf, it makes sense that we should focus on increasing our awareness of both good and bad negotiating techniques in order to master the good stuff while weeding out the bad.

THE CHALLENGE

A common mistake that collectors often make is heading into each call thinking it’s a debate. The “survival of the fittest” mindset kicks in and the call becomes a battle of wills. There can only be one winner, and the collector wants to achieve victory at all costs.  There are times when this style (Defeat) might seem like the only option, but chances are a different style (e.g., Collaborate) can produce the same, if not better, result.

This week as you head into each call, remember that it is not a debate. It’s a chance to help a fellow human being overcome a serious financial setback. Instead of thinking you are competing against the consumer, try seeing yourselves as teammates working together to score a touchdown with only thirty seconds left in the championship game.

For more information on unlocking your personal negotiating style, consider joining me for a live 90-minute assessment-based webinar on June 3 or 17. Additional details about the time, costs, and assessment process can be found here.

THE REFLECTION

What do you find most difficult about working with consumers who are not willing to collaborate in order to reach a win-win solution?

Please share your thoughts in the comment section below.

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

© 2011 collector mentor  All rights reserved.

THE LESSON

Listening. It’s the one skill that every collection manager preaches about and the one skill that requires the most practice by collectors. It also happens to be the one skill that many consumers believe to be lacking in the collections industry.

As I pointed out in last month’s challenge, Listen to What Isn’t Being Said:

The listening process is a tool to build trust, develop rapport, and convey a message of openness. Through effective listening, collectors can identify a consumer’s intent and underlying motivation, values, attitudes, and desires — all of which are an important part of the negotiating process.”

The bottom line is that collectors who listen to consumers stand a better chance of getting paid than those collectors who don’t listen.

March is International Listening Awareness Month, and in the spirit of things, I thought it would be fitting to explore listening barriers and bad habits as part of this week’s challenge.

Barriers to Effective Listening

Unfortunately, not all barriers are within your control. That’s the bad news. The good news, however, is that the overwhelming majority of barriers are within your control.

Research indicates that the average person talks at a rate of 125-175 words per minute, yet we can listen at a rate of up to 450 words per minute (Carver, Johnson, & Friedman, 1970). Given those statistics, it is easy to see how a person can fall into the trap of rushing a speaker, finishing his or her sentences, or drifting off into a daydream.

In 1984, Watson and Smeltzer found three primary barriers to effective listening:

1. Environmental distractions (ringing phones, noisy coworkers, email, etc.)
2. Personal and internal distractions (hunger, illness, or preoccupation with something else)
3. Rebuttal tendency (developing a counter argument while the speaker is still talking)

Although the study is more than 25 years old, today those three barriers are still spot on. And while you might not be able to control everything within your environment, such as your obnoxious coworkers, learning to master those elements that you can control will give you a powerful competitive advantage.

In their book Listen Up, authors Larry Barker and Kittie Watson cite the following poor listening habits:

1. Interrupting the speaker.
2. Not looking at the speaker.
3. Rushing the speaker and making him feel that he’s wasting the listener’s time.
4. Showing interest in something other than the conversation.
5. Getting ahead of the speaker and finishing her thoughts.
6. Not responding to the speaker’s requests.
7. Saying, “Yes, but…,” as if the listener has made up his mind.
8. Topping the speaker’s story with “That reminds me…” or “That’s nothing, let me tell you about…”
9. Forgetting what was talked about previously.
10. Asking too many questions about details.

THE CHALLENGE

Thankfully, you have the ability to prevent each of the 10 bad habits from rearing their ugly head, and this week your challenge is to do just that. Spend a moment comparing your listening skills to the list above and make a point of practicing good listening habits in all of your interactions, including collection calls, meetings, and conversations on the home front. You might consider printing the list and placing it where you can keep an eye on it. You might find the visual trigger to be a helpful reminder.

THE REFLECTION

Please share your thoughts in the comments section below.

1. What do you find most difficult when attempting to listen to a consumer?
2. Of the 10 poor listening habits listed, which do you hear most often in your call center?
3. How does your company create an environment that supports the listening process?
4. Does your company have formal listening training program available for employees?

Listen up!

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

© 2011 collector mentor  All rights reserved.

THE LESSON

People who listen effectively are perceived to be great communicators, and in collections being anything less than a great communicator simply isn’t an option for anyone with hopes of being a top performer. Ask any collection manager for a list of their collection secrets and without a doubt listening skills is always at the top. And for good reason, too.

The listening process is a tool to build trust, develop rapport, and convey a message of openness. Through effective listening, collectors can identify a consumer’s intent and underlying motivation, values, attitudes, and desires — all of which are an important part of the negotiating process.

The wisest collectors know that being a great communicator means listening to not only what the consumer is saying, but also to what he or she isn’t saying. In fact, even the “Father of Modern Management” Peter Drucker, pointed out that

The most important thing in communication is to hear what isn’t being said.”

THE CHALLENGE

This week, your challenge is simple: Listen to what the consumer isn’t saying.

THE REFLECTION

1. What type of background noises are cues that cause you to adapt your approach?
2. How do you redirect a consumer who constantly avoids answering a question?
3. What three things do you listen for that aren’t being said?

Shhhh!

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

© 2011 collector mentor  All rights reserved.

THE LESSON

According to a 2009 Polk-Lepson Research Group study, 88% of executives and HR professionals believe that professionalism is related to the person, not the job. In addition, 97.7% claim that professionalism weighs heavily on their decision to extend or not extend a job offer.

Wow. Sounds like important stuff.

In training seminars, I often ask attendees to share their thoughts on what it means to be professional. As always, there are similarities and differences. Terry believes it relates to dress and appearance, John does not. Chris thinks it is okay to share personal problems at work, Sarah disagrees.

Definitions of professionalism revolve around the same central theme: It is a certain type of behavior in the workplace and includes such items as appearance, interpersonal skills, ethics and values, and yes, even cubicle etiquette (i.e., office manners).

So, what did the employers in the Polk-Lepson study say constitutes unprofessionalism? Take a peek:

• Appearance, which includes attire, tattoos, and piercings (39.1%)
• Poor communication skills including poor grammar (38.9%)
• Poor work ethic (37.0%)
• Poor attitude (28.3%)
• Being disrespectful and inconsiderate (27.4%)
• Having a sense of entitlement (16.6%)

Maybe you agree. Maybe you don’t.

THE CHALLENGE

This week’s challenge is to share your definition of professionalism using the three steps presented below.

1. Take out a pen and a sheet of paper and finish the phrase: Professionalism is ___________________.
2. Share your response in the comments section below.
3. Hold a team meeting and invite each person to share his or her definition. Discuss similarities and differences.

THE REFLECTION

1.    Do you believe that professionalism is related to the person or the job? Why or why not?
2.    How do you think professionalism impacts your company?
3.    In looking back, do you think your definition would have been different 5 years ago?
4.    What were the main similarities between team members? Differences?
5.    What behavior do you deem unprofessional?

Have a great week!

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

The latest issue of collector mentor is now available for download.

In this issue:

• Blending coaching and collecting w/Brent Stanton
• Tips for moving up the ladder w/John McNamara
• 4 tips for surviving the predictive dialer
• How to collect from difficult customers while keeping your cool w/Michelle Dunn
• Cubicle etiquette tips your coworkers wish you knew about
• Harnessing the power of paraphrasing
• Risk-based pricing regulations w/Joel LeBlanc
• An overview of the CFPA w/Attorney Tomio B. Narita
• Navigating the industry online
• Plus more!

THE LESSON

Last week’s challenge, One Word at a Time, encouraged us to improve our communication skills by strengthening our vocabulary. I suggested using Merriam-Webster’s “Word of the Day” email as a tool to help us do just that. If you took the time to sign up, then the word “phatic” hit your inbox this past Sunday. And, it is that word which inspired this week’s challenge.

Merriam-Webster defines the word phatic as “speech used for social or emotive purposes rather than for communicating information.”

An example of a phatic statement would be when someone asks you in passing, “Hey, how’s it going?”

If you are like most people, either you reply with a quick one-word answer (e.g., “good”) or with a question of your own (e.g., “Hi, how are you?”). Neither of you expect the other person to provide a long-winded response. In fact, you might not expect a response at all. It is merely a kind gesture.

I have monitored hundreds of collection calls over years, and there is one phatic statement that can be problematic even for the most experienced collectors. That statement: How are you today?

Collectors often inject this statement during the introduction as a way to break the ice and gently ease into the real conversation. The opening, however, is the most important part of the call and my experience has taught me that this one phrase can cause a call to get off track, especially when a consumer provides a less than favorable response, such as, “I’m doing horrible.” When this happens many collectors reply with a quick and heartless, “I’m sorry to hear that” and then launch right into a demand for payment.

Lots of collectors, especially the inexperienced among us, struggle to recover and redirect the conversation when a consumer responds in the negative, which is why I encourage collectors to think twice about using the phrase during the introduction. It sounds harmless enough, but few consumers believe you truly care about how they feel, even if you really do, and some consumers will use that phrase as an opportunity to attack the collector.

With that said, if the collector has an existing working relationship with the consumer, using that phrase can actually be beneficial to the conversation.

THE CHALLENGE

The bottom line is that in the absence of an existing working relationship using the phrase can create an awkward (and unnecessary) moment during the most important part of the call. Collectors should think twice about using it. Those who insist, however, must commit to mastering appropriate handling strategies to deal with negative responses.

This week, take a moment to analyze your introduction. If you use the phatic statement “How are you?” during the opening of your calls, assess the results it produces. If you find yourself at a loss for words when consumers provide negative responses, put some thought into how you can use their responses to redirect the conversation in an effective manner, or simply stop using the phrase altogether.

THE REFLECTION

1.    Do you think the question “How are you doing today?” causes problems in the opening of the call? Why or why not?
2.    How do you recover when you ask a consumer how they are doing and they respond with an unfavorable answer?

Stay cool, calm, and collected,

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

THE LESSON

Over the past few weeks, my two-year-old son has shown tremendous improvement with his vocabulary and comprehension. He is now at the stage where he points out and names everything he sees. His development is allowing the two of us to communicate more clearly, resulting in less confusion and frustration. As a parent, it’s pretty cool. As a collection professional, it’s a timely reminder of the important role that vocabulary plays in our conversations with customers, teammates, bosses, and clients.

In his blog post The Importance of a Good Vocabulary, author Bo Bennett lists the following benefits for strengthening your vocabulary:

• Increasing your vocabulary allows you to use more descriptive words to better communicate your thoughts.
• Understanding the meaning of more words will allow you to better understand information that you are reading or listening to (comprehension), thus increasing your retention. 
• Having a larger vocabulary to call upon will help your verbal communication flow and allow you to start eliminating noises such as, “umm” and “uhh”. 
• Being able to use more colorful words in speaking to others will allow you to project a more intelligent image. 
• Knowing more words will make you a better Scrabble® player.

Given the fact that our profession relies heavily on effective communication, certainly we can all agree that Bo makes some excellent points. After all, what collection professional doesn’t want to communicate thoughts more clearly, sound more knowledgeable, and improve his Scrabble® skills?

THE CHALLENGE

This week make a concentrated effort to upgrade your communication skills by strengthening your vocabulary one word at a time.

Here are three ways to make it happen:

1. Learn one new word each day. You might even consider using Merriam-Webster’s “Word of the Day” email to have a daily vitamin delivered directly to your inbox.
2. Look up unfamiliar words. Often times we come across unfamiliar words. When that happens, take the time to look up the meaning of the word to further your comprehension.
3. Use juicier words. Marketing pro Drew McClellan understands the importance of word choice. In fact, he’s a big fan of using juicy words. In his post, My language is just grating!, Drew provides a three fun and challenging exercises that you can use to sharpen your skills. Be sure to click through and check it out.

THE REFLECTION

1.    How does word choice influence your conversations with customers?
2.    Do you think a stronger vocabulary creates more credibility with your audience?
3.    What tips do you have for strengthening your vocabulary?
4.    What did you learn about yourself as a result of completing Drew’s exercises?

Be strong this week!

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

Economic Aftershocks: Managing Risk on Your Collection Floor in 2011

Live Webinar

September 21, 2010 1pm EDT/12pm CDT

Duration: 75 minutes

Cost: $79 USD

Reserve your seat today!

The economic collapse that influenced creditors and collection agencies over the past 18 months had varying effects. More consumers (and businesses) fell behind on obligations, some for the first time ever, and many companies were forced to do more with less.

According to the latest insideARM.com Confidence Survey:

• More than 50% of agency executives reported moderate to large increases in placements during the 2nd quarter.
• 26.6% are accepting more payment arrangements (meaning the relationship with the customer will be extended as a result).
• Even though placements are on the rise, 22.9% of agencies, 19.6% of creditors, 22.2% of law firms, and 16% of debt buyers eliminated jobs in 2Q 2010.

With placements, complaints, and lawsuits on the rise, collection executives must ensure their operation is adequately prepared to weather the storm as we head into 2011. This is especially true for those companies that have cut jobs and are now being forced to do more with less.

What You will Learn in Part 2

Attend The Perfect Storm - Economic Aftershocks: Managing Risk on Your Collection Floor in 2011 right from your computer on September 21st to receive these key takeaways: 

• Understand why a formal complaint system is important and the benefits it offers your collection business.
• Review complaint handling best practices and identify implementable practices that support your business philosophy and vision.
• Learn a systematic approach for implementing a formal complaint system at your agency.
• Familiarize yourself with quality assurance monitoring best practices to reduce compliance risk while increasing collections and customer service.

About the Presenters:

Jaci Minges, Training & Quality Assurance Manager, Security National Automotive Acceptance Corporation

Jaci is the Training & Quality Assurance Manager of Security National Automotive Acceptance Corporation. Jaci has been in the ARM industry for 9 years. She is responsible for training and development of new and existing employees through formal and as well as informal training methods, quality assurance and compliance throughout the call center (customer service, collections and recovery), and dialer administration. She is currently working on earning her MS.Ed. and is a member of the ACA (Creditor’s International) and the American Society of Training and Development.

John McNamara, Chief Marketing Officer, LiveVox

Chief Marketing Officer for LiveVox and director and founder of Fidelis Recovery Solutions, Inc, John McNamara is a 27-year industry veteran with experience in all phases of collection and recovery operations with intense focus on technology applications, call center optimization and compliance management.

Prior to joining LiveVox, John was COO for AMO, SVP of Operations for Nationwide Credit/ACB and VP of Operations for United Recovery Systems, LP.

John is a frequent speaker/panelist/consultant and author addressing key issues and trends in the collection industry. John was recently named to Collection Advisor magazine’s list of the Top 50 Most Influential Collection Professionals for 2006. In 2007, John was appointed Vice President and Board Member of the Georgia Collectors Association. John was inducted into the Gerson Lehrman Group GLG Leaders Program in 2008, and John is the 2009 winner of the ACA Kurt Swersky award for leadership.

John is currently Chairman of the ACA Affiliate Committee, Board Member for collector mentor and member of the ACA Technology Committee.

John is a summa cum laude graduate of Kennesaw State University with a Bachelor of Business Administration degree in Finance. Lastly, John is a long suffering Kansas City Chiefs fan and a diehard Kansas Jayhawk.

Gary Jensen, Founder & Chief Learning Officer, Skills World

Gary Jensen is the founder and chief learning officer of Skills World – a training , coaching, and consulting company which specializes in serving members of the credit and collection industry. Gary has twelve years of industry experience and is a former ACA Certified Instructor, past member of ACA’s esteemed Education Council, and former ACA National Director.

Gary is also the creator and editor of collector mentor™ – the credit and collection industry’s premier training aid for frontline industry professionals. He has appeared as a guest speaker at several industry events and his articles and advice have appeared in many of the industry’s leading publications.

This is a lesson that all collection executives must have!

Reserve your seat today and then get ready for Part 3 – The Social Media Swarm on October 26 at 1pm EDT.

Session Three Preview:

• Discussion of how social media is affecting business.
• Review of the popular social media tools and how consumers are using them to voice their frustrations.
• What strategies you can use to stay on top of the social media buzz.

THE LESSON – TREAT COMPLAINTS AS A GIFT

In late June, Apple launched the highly anticipated iPhone 4 and sold 1.7 million new phones within the first three days, nearly doubling previous iPhone product launches. In fact, pre-orders for the new iPhone allowed AT&T to have its busiest day ever for online sales (so much so that AT&T’s servers crashed). While it appeared that this product launch would go down in history as a huge success, it was only a matter of hours after the phones officially arrived in the hands of consumers that complaints about reception started to rear their head. The iPhone 4’s new design can cause significant reception problems if held in a certain manner (now dubbed “the death grip”). In response to one customer, Apple CEO Steve Jobs wrote in an email, “Just avoid holding it that way.” I could be wrong, but I am guessing that wasn’t quite the response the customer expected to receive, especially from a company as cool as Apple.

Watching the Apple saga unfold has really got me thinking about how we view customer complaints. Let’s face it. The credit and collection industry is ripe with complaints and proper complaint handling is an important part of our job.

In the popular book, A Complaint is a Gift (second edition), authors Janelle Barlow and Claus Moller encourage companies to change their perspective on complaints, and instead of seeing complaints in a negative light, see the complaints as something more positive—as a gift.

According to the authors:

Complaints are a feedback mechanism that can help organizations rapidly and inexpensively shift products, service style, or market focus to meet the needs of their customers—who, after all, pay the bills. It is time for all organizations to think of complaint handling as a strategic tool—an opportunity to learn something about products or services that maybe they did not already know—and as a marketing asset, rather than a nuisance, a cost, and a royal pain.”

The book describes a complaint as:

… statements about expectations that have not been met. They are also, and perhaps more importantly, opportunities for an organization to reconnect with customers by fixing a service or product breakdown.”

It can be all too easy to view complaints negatively. After all, while some complaints are legitimate, many are not, and sadly, some consumers simply want to get their squeaky wheel greased. Regardless, a complaint is a complaint, and a dissatisfied consumer will certainly share their frustration with others (e.g., FTC, Better Business Bureau, online blogs, Attorney Generals, clients, etc.).

The book goes on to state that:

When customers feel dissatisfied with products and services, they have two options: they can say something or they can walk away. If they walk away, they give organizations virtually no opportunity to fix their dissatisfaction. Complaining customers are still talking to us, giving us an opportunity to recapture their interest …”

THE CHALLENGE

Don’t worry, your challenge this week is not to read the book (although that wouldn’t be a bad idea). Your challenge is actually much more difficult than that. This week your challenge is to view each complaint as a gift and use the opportunity to recapture the interest of your customers.

Here are four things you can do with your gifts this week:

1. Thank the person for giving the gift to you.
2. Be appreciative, even if you don’t necessarily like the gift.
3. Be determined to do something useful with the gift.
4. Invite the person to give you more gifts in the future.

For extra credit, spend a few minutes watching Janelle talk about philosophy on complaint handling:

THE REFLECTION

1.    What do you think is the most important part of complaint handling?
2.    Does your company have a formal complaint handling policy?
3.    When you have a complaint about a product or service, how do you expect it to be handled?
4.    How do you deal with frivolous consumer complaints?
5.    Were you able to improve a business processes because of the gift you received?

Unwrap and enjoy!

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

Photo on Flickr c/o MarcinMogo