After countless collection calls and careful observation, I have come to a key realization: forming genuine connections with people you may never meet face-to-face is vital for productive conversations. While some may argue that building relationships over the phone is unrealistic, I beg to differ. Let’s talk about some practical tips to make this happen smoothly during your next collection call.
The Seven Components for Building a Relationship Over the Phone:
- Communication Skills
- Listening
- Questioning
- Positive Phrases
- Clarifying
- Explaining
- Guiding the Conversation
Communication Skills
Communication Skills over the phone are definitely different than when you are speaking with someone in person. You cannot use your hands, eyes, body language and expressions to reinforce your interaction.
Without gestures or facial expressions, you rely heavily on your tone. But remember, shouting will not necessarily help if someone is struggling to understand you. Instead, speaking slowly and clearly works better, especially if there is a language barrier.
I believe how you speak—your pronunciation and pace—is crucial. In a collection call, the collector is like the responsible adult in the relationship. They need to guide the conversation and ensure clarity. Using simple language increases the chances of being understood, whereas jargon only confuses things further.
Listening
Listening is absolutely key in any conversation. If you were to survey folks about their multitasking prowess, I bet a whopping 90% would claim they are champs at it. But research suggests otherwise – apparently, only about 7% of us can really juggle tasks effectively. So, it is safe to say most of us struggle when we are juggling too much.
The same goes for listening. Truly attentive listening means putting aside your own agenda and really tuning in to the other person. It might slow things down a bit, but the payoff is worth it.
So, what gets in the way of good listening? Well, often it is our brains jumping ahead to what we want to say next instead of truly digesting what is being said. Active listening means holding off on formulating your response until the other person is done speaking and you have fully grasped their point.
And there are other obstacles, too:
- Background noise
- Difficulty hearing
- Feeling worn out
- Too much info overload
- Emotions running high
- Trying to do too many things at once
- Bias and stereotypes creeping in
Bottom line: Active listening is all about making a conscious effort to understand the other person.
Questioning
Questioning plays a pivotal role in debt collection, particularly in assisting individuals with their financial predicaments. Each person brings their unique circumstances, and effective listening is paramount in grasping their situation. The art lies in asking the right questions to glean pertinent information.
There are two primary questioning techniques: open-ended and closed-ended.
- Open-ended questions aim to elicit comprehensive responses, allowing individuals to provide detailed explanations. For instance, prompting someone for their current address encourages them to provide the necessary information.
- Closed-ended questions, which demand simple yes or no answers, are useful for steering the conversation and obtaining specific details, such as confirming an address or a payment arrangement.
Strategically employing both types of questions facilitates steering the conversation in a focused direction, preventing it from veering off course.
Positive Phrases
Positive Phrases foster goodwill and strengthen relationships. When people feel appreciated and valued through positive language, they are more likely to develop trust and rapport with others. Words of encouragement and affirmation can inspire individuals to strive for excellence and persevere through challenges. Positive phrases contribute to a more relaxed and harmonious environment. They can alleviate tension and anxiety, making interactions more enjoyable and productive.
What is your reaction to this statement? “You are the one who forgot to mail your payment. I told you the payment would be late if you did not make your payment over the phone with me.” Could this statement be changed to a positive statement? For example, “Unfortunately there is a possible delay when payments are made through the mail. We will be more than happy to waive the late fee and for future reference if the payment is due the same day you call, we suggest you make the payment over the phone to avoid a delay.”
Overall, using positive phrases enhances communication, strengthens relationships, and promotes a more supportive and productive environment in professional settings.
Clarifying
Clarifying involves seeking further understanding or resolving confusion about a particular topic, concept, or statement. When you clarify something, you are typically asking for more details, elaboration, or confirmation to ensure that you have correctly understood the information provided. Clarification helps to eliminate ambiguity and misunderstanding in communication.
Clarifying techniques start with listening so that you know what you are clarifying. Listening to understand requires you to listen and ask questions. As you ask questions you begin to better understand what the person is trying to say.
One area of clarifying I have picked up on over the years is the use of a Phonetic Alphabet. Maintaining a consistent approach significantly streamlines communication, both at an individual level and within an organization. Standardizing tools like this underscores the presence of a structured communication process within your organization.
A community that particularly values the use of a phonetic alphabet is the military. People often respond favorably when you speak their language.
These phonetic words are universally recognized and used by military personnel, pilots, emergency responders, and others who require clear and precise communication over radio or telephone channels. The US military phonetic alphabet is as follows:
|
A – Alpha |
B – Beta |
C – Charlie |
D – Delta |
|
E – Echo |
F – Foxtrot |
G – Golf |
H – Hotel |
|
I – India |
J – Juliet |
K – Kilo |
L – Lima |
|
M – Mike |
N – November |
O – Oscar |
P – Papa |
|
Q – Quebec |
R – Romeo |
S – Silo |
T – Tango |
|
U – Uniform |
V – Victor |
W – Whiskey |
X – XRAY |
|
|
Y – Yankee |
Z – Zulu |
|
Explaining
Explaining involves providing information, details, or context to help someone understand a concept, process, or idea better. When you explain something, you are breaking it down, offering insights, examples, or analogies to make it more comprehensible to the listener. Explanation aims to convey knowledge or understanding in a clear and coherent manner.
As a collector, you are well-versed in the options available to individuals seeking to address their financial challenges. Many consumers facing financial strain often find it difficult to navigate their options. As a professional in the field, your role entails guiding them through potential solutions and resources.
Here are some effective tactics for conveying information:
- Exercise patience.
- Prioritize active listening to fully grasp their situation.
- Address their inquiries promptly.
- Master the use of your organization’s procedures.
- Present viable solutions tailored to their needs.
- Project confidence in your recommendations.
- Maintain firmness when necessary.
- Always show respect for the individual’s circumstances.
Remember, who knows the most about solutions and available resources regarding a consumer’s account, the consumer or you?
Guiding the Conversation
Guiding the Conversation involves engaging with the consumer to find solutions to their financial issues that benefit both them and your company, ideally, in a timely manner.
How do you achieve these dual objectives?
- Keep the consumer focused by using a mix of open and closed-ended questions.
- Minimize personal conversations to stay on task.
- Employ empathy appropriately to address the consumer’s concerns and steer the conversation back on track.
- Adhere to your company’s procedures to resolve the issue efficiently.
- Listen attentively to the consumer to avoid the need for repetition.
- Present your suggestions with confidence.
Remember, effective listening is paramount; without it, achieving the desired outcomes becomes challenging.
Conclusion
In conclusion, building a relationship over the phone is not only possible but essential for effective communication, especially in scenarios like debt collection. Through mastering the seven components discussed—communication skills, listening, questioning, positive phrases, clarifying, explaining, and guiding the conversation—you can navigate conversations with clarity and empathy.
Communication skills over the phone demand a nuanced approach, relying heavily on tone and clarity rather than physical cues. Active listening, despite its challenges, forms the foundation of understanding and rapport. Questioning, whether open-ended or closed-ended, helps uncover vital information while fostering a focused dialogue.
Positive phrases and clarifying techniques contribute to a supportive and productive environment, easing tension and promoting clarity. Explaining complex concepts with patience and confidence aids in guiding individuals towards viable solutions tailored to their needs.
Remember, each interaction over the phone presents an opportunity to build trust and understanding, ultimately strengthening relationships and fostering positive outcomes. Embrace these principles in your next collection call and watch as your conversations become more productive and impactful.
Author: Ken Evancic
Ken.Evancic@ResourceManagement.com
Ken Evancic is a Vice President at Resource Management Services, Inc. Ken Evancic is a collections veteran with over 25 years experience. He has managed all phases of collection, including all levels of delinquency, automated dialer units, early out agency management, recovery, and skip tracing. In addition to collections operations management, he has lead initiatives in the areas of performance management, collections strategy development, collector and manager training, collector desktop design, collections reporting systems, and risk and compliance.
As a consultant for Resource Management Services, Inc., Ken has specialized in developing and completing third party compliance and performance audits for collections agencies and collection attorney firms for many top credit grantors and debt buyers. He has leveraged his 25 years of experience to develop multiple collector and collection management training classes designed to maximize collector performance. In addition to collection training, Ken helped develop and facilitates the RMS Third Party Vendor Auditing training.
Ken Evancic also developed and teaches BUMPIT UP! Collections for various groups and companies.
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