For member-centric organizations, collecting on past-due amounts is neither comfortable nor easy. Still, being proactive and prompt in your collections is essential, as is forming a standard operating procedure around processes. Here are some other ways to cut down on collections:
1. Cut down on collections with the tools you have.
So a member has an outstanding balance but hasn’t checked in for weeks. If a face-to-face option doesn’t seem likely, a phone call may be necessary. But instead of just calling the member to let her know she owes, use this time to engage and build a relationship.
Let her know of her flexible online options—the ability to login and pay right now from where she is via account management on your website. She will be more likely to pay balances online next time, and since she’s visited your website, she’s also exposed to the program information you make available online.
2. Cut down on collections with the processes you have.
Collections are much higher when returns and credit card expirations aren’t being managed. But there are ways to get out ahead of impending problems.
• Using your operations software, pull a report to see upcoming card expiration dates.
• Drive cardholders to your website to update their credit card information. They may not know this is something they can complete online.
• Consider setting up a program for getting ahead of card expirations.