Collection Letter or Phone Call?
As a general rule in early collections, a phone call is ten times more effective than a written collection letter. This is mainly because at this stage a two-way dialogue is far more effective than a one-way communication.
But like many rules in collections, there are exceptions:
• You might need to send a first collection letter because you don’t have time to make all your calls that week.
• A letter will be less expensive than long distance calls to small balance out-of-town customers.
• If you do not have trained telephone collectors, it is better to use well-written letters and less telephone contact.
Your success rate using a letter with the format provided at the Stevens & Ricci Resource Center should increase drastically. The smaller the business you are sending it too, the more success you are likely to have. The larger the business, the less success you are likely to have. (more…)
