Sometimes a Team, Sometimes a Contest
Credit/Sales teamwork has become a bona fide mantra in credit management, but in any poll on its value and effectiveness list Troy Anglin as a skeptic. "If a salesman is honest and above board, we have a team," says the veteran credit manager of Radiator Specialties (Charlotte, NC). "If he tries to deceive me, we have a contest." Anglin readily admits that his sometimes adversarial attitude toward his counterparts in Sales is largely a result of conditions in the automotive chemicals industry. Competition is 'fierce,' and terms (e.g., 2%/30 for sales under $5,000 and 2%/60 for sales over $5,000) prompt customers to wrangle for any extra leeway the can get. Recently when he called a customer about an overdue payment on a $750,000 balance, the customer told him he was supposed to have 120 days to pay.
"Both the salesman and the sales manager were on vacation, and I couldn't reach them right away," he says. "But when I finally talked to the sales manager he said, 'There's no way we gave them 120 days.' When I called the customer again they admitted they were having problems and weren't paying anybody on time. We received payment a week later." Anglin emphasizes that he never looks for trouble in his dealings with salespeople. "It's all a matter of risk," he says. "If risk is minimal, I'm more than willing to be lenient. I never fight on deals with blue chip accounts. But as the risk goes up so do my objections to changing terms and discounts." In those instances where he does agree to ship orders against his better judgment, he makes it clear that hevll track the account all the way to payment and remember if the salesman misled him. "They know better than to come back to me with something like that again," he says. If Anglin and the Radiator Specialties sales force are not always a smooth functioning team, he acknowledges that they are a community, sharing rewards and disappointments. He recounts their experience with one customer who, after five years of excellent relations, suddenly disappeared. "He fooled everybody," he says. "His landlord didn't even know he was gone. And he stuck his creditors for $2.5 million. We incurred a substantial loss due to our confidence in this customer. "Our salesman was distraught. He thought he knew the guy. He'd even been to his wedding." A Customer Letter You'd Like to Get
The Credit/Customer Service nexus is another top priority today. Image how delighted you would be to get this letter: I wish to call your attention to your particular employee, Nancy, in your headquarters office. As far as we can tell, Nancy is in your credit department. However, her skill and knowledge of your enterprise suggests that she belongs to, at least influences, all manner of departments, such as Credit, Accounts Payable, Service, Account Support, and Sales. Within the past few days, we have been experiencing some fiscal, contractual, and technical problems. With sure and swift fairness, Nancy became a focal point of information and action well beyond what I would think of a normal call of duty. We sought information; she made sure we got it. We needed action; she made sure it happened. Promises were kept. Nancy is a superlative representative of your time-honored corporation. Thank you. "If you have a lot of late accounts, it's often because customers are dissatisfied," notes the veteran credit manager who is Nancy's boss. "Until you get to the root of their dissatisfaction, you will always have problems collecting." When customers run delinquent, collectors (refers to by their boss as "first-customer-satisfaction-interface" specialists) don't bring out the big guns and start threatening customers. Rather, they assume that a problem exists, and they try to get to the root of it. A typical conversation might go like this: "Is everything OK? How is your system operating? Did the sales rep do what he was supposed to do? Did our service technician do what he was supposed to do? I'm, glad you're happy with our products and services, and we're pleased to be able to serve you. Can we expect payment shortly? I notice you're a couple of days overdue." Typically, if customers have no problems, they quickly apologize for their oversight and mail payment immediately. However, if they do report problems, the collectors can get right to work to resolve them. Collectors have the authority (and responsibility) to help correct any problem a customer may report. "They can call any department for help," emphasizes the credit manager. "If these departments are unable to help, then they can call me." To date, no one has had to call him, highlighting the fact departments in the company work cooperatively. "It's not a good situation when a customer has a problem," he says. "However, a customer will live with a problem as long as he or she knows someone will take responsibility and solve it." 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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