Is there a difference between credit management and customer service? In years past, there may have been but not today. Credit and Customer Service are not only related; they are interdependent, in that both focus on meeting customer needs.

Customers demand and are entitled to expect courtesy, efficiency, honesty, and responsiveness. Showing concern, providing comprehensive information, and utilizing a consultative approach are the best ways of meeting these expectations. Interestingly, this value-added approach does not cost much, but it reaps substantial benefits in terms of customer loyalty.

Editor's Note: This article originally appeared in the Credit & Collection Manager's Letter, which Credit Today purchased in 2006.

A study conducted by TARP (a Washington, D.C. consulting firm) for the White House Offlce on Consumer Affairs found that:

• 96% of unhappy customers never complain about rude or discourteous behavior, but
• 90% or more who are dissatisfied with the service they receive do not come back or buy again.
• Furthermore, each of these customers tells his or her story to at least nine other people. 13% tell their stories to over 20 people.
• 68% of customers who leave a business do so because of real or perceived indifference to their needs, situations, or problems.

In order for the credit department to properly engage in customer service, it must possess three components:

• Strategy (focused on meeting customer needs)
• Systems (computer systems that support the process with speed and efficiency)
• People (who treat all customers with fairness and respect)

Of these, people may be the most important. Each person in the credit function must possess four traits:

• Empathy with people
• Inner need to persuade
• Service motivation
• Ability to manage stress and change

This is what you should expect of your employees. What should they expect of you?

• Clearly defined objectives and procedures
• A clean, attractive work environment.
• Comprehensive training
• Sufficient staff to meet work levels.
• Sufficient resources to meet work requirements.-
• A team management mentality.
• Empowerment to serve the customer
• Competitlve compensation and benefits.
• Recognition for individual and team accomplishments

A final point: It's not your products or product support that keeps customers coming back. Most of your competitors also offer these. What keeps customers coming back is enhanced service, and the credit department can play an integral role in providing that service.

Paula Thorpe
National Credit Manager
Mediacom, Inc.
Etobicoke, Ontario

A 20-year credit management veteran, Paula Thorpe conducts training seminars for other credit professionals on coping with changing times, customer service, and new developments in the field. She participated in the reengineering effort that converted Mediacom from a departmental to a cross-functional team structure, and she trains company employees in "internal customer intimacy."

Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, a newsletter purchased by Credit Today in 2006. This article originally appeared prior to 2000.

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