WILL CHASING DEBTS HURT MY BUSINESS ?
Drop and run:
We believe that once a member runs up a $30 debt, they don't come back or they go to the store around the corner. Nudging these members with a Courtesy Reminder on a Store Letterhead will get them re- renting. We've seen good re- activation rates with inactive members sometimes as high as 80%.
You have to figure, they've run up a debt at your competitor as well, so if you push them
to settle their debt with you, they will say, "we might as well rent there again now that we don't owe them any money".
WE ONLY EVER TARGET MEMBERS WHO HAVE NOT BEEN BACK IN THE STORE FOR 3 MONTHS.
Non-returned stock:
If your member hasn't brought your stock back after 2 weeks and you've called and smsed, its time to send a letter. Members put "take movies back to the video store" at the bottom of their list below shopping, watching TV and taking the kids to the park.
A Courtesy Reminder on a Store letterhead is not unreasonable. If you've already sent a letter, we recommend going straight to an eCollect letter.
Often members are simply unaware, your counter guy hasn't smsed them like he's supposed to, the mobile number is changed, they don't have an answering machine. Letters are the best option to begin the recovery process.
Chasing your debts sends a strong message to your customer base that you can rip off the store down the road but this store wants their movies back and won't tolerate a drop and run.
So why outsource to a debt collection company?
- We're more thorough. We pull a report and examine and repair the list of debtors. It's the operator's job to focus just on this debt list. Often we find there are simply postcodes missing. Our operator is not serving customers, scanning in movies, dealing with the Coca Cola guy, he's updating addresses and smsing mail returns and focusing just on the debt list.
- You can play good cop bad cop. Make us the bad guy. Tell them to come to the store and we'll cut you a deal. We're used to $300 debts being settled for $20. At least you're got something and you've reconnected with the member. You'll get you're money back slowly if he buys popcorn and rents again.
- Mailing is expensive. Do you really want the headache of sending hundreds of letters? You have to buy stamps, envelopes, paper, a printer, ink cartridges. Physically go to the post office. Then you have to update mail returns. Etc Etc.
- Abusive Customers. Are unavoidable. If you run a business that sells to the general public, you can't avoid the bored and angry housewives. If you outsource your debts, you can simply hand the difficult members over to us.
