Customer Retention

It is far more expensive to find, attract and to qualify new customers than it is to find ways to keep current customers. Customer service has become an important part of every company's strategy to retain as many customers as possible. The credit and collection department has important role to play in providing customers with the help they need.

Often, the credit and collection department has more contact with the customer as anyone in the company. With this fact in mind, it is essential that credit department personnel understand the importance of customer service - and that they take an active role in helping the customer by either:

(a) Resolving problems for the customer, or
(b) Referring the customer to someone who can help them

One note of caution: Referring a customer to someone else in the company can upset the customer. The customer might feel that the credit department is "dumping" the problem on someone else. To prevent any misconceptions along these lines, when transferring a customer to another department, the credit representative should:

• Stay on the line to make sure the call does not go into voice mail
• Introduce the customer to the person they have referred the call to
• Give a brief overview of the issue or problem
• Ask if there is anything more they can do at that time
• Invite the customer to call them back if they feel they need any additional assistance
  

Source: Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore.