Listen long enough and you will hear a solution

Owners and managers of Collection agencies are just like the collectors that work for them and in most cases they got it honestly. They just don’t listen. When I do collector training 50% of the training is listening skills I teach the collector to listen long enough to get some offer of payment. Owners and managers who probably started as debt collectors have similar issues regarding improvements to the collection process.

As a consultant I am constantly sending emails like this or writing blogs that provide Solutions or at least hint at the solutions to today’s problems in the ARM industry. But just like the collector that doesn’t listen long enough to get a commitment of payment which will start the negotiation process the owners think they already have all the answers and turn their minds off two other solutions. When I started consulting 15 years ago I worried that finding better solutions would be difficult I quickly learned that what is difficult is getting the persons by-in to a new process. Most people do not like change and therefore just ignore improvements.

The face of the debt collection industry it Is changing and becoming much more electronic. As this change occurs everyone in the industry must embrace those changes and be willing to make the proper improvements. As we move to a self cure collection strategy how we use our live agents becomes even more important. More and more consumers will choose to self cure as the electronic options become more consumer friendly and available. Self cure liquidation rates will only be driven by the strategies used to drive consumers to that website or IVR. Once the consumer is logged in to your payment portal only the strength of your portal Will collect the bill.

The biggest gains in liquidation rates Will be driven by the inbound and outbound call strategies. As the self cure options reduce the number of inbound and outbound calls the quality of those calls becomes more important exponentially. Owners need to listen to experts like myself who are able to provide solutions that can blend self cure with call strategies that maximize both the timing of the contact, the type of contact and the strategy behind that contact method.

Emails, Texting, IVR’s, Manual calls, Letters, Payment sites and inbound calls all need to be blended not only for a effectiveness but also for compliance. As we move to a multichannel collection process including all of the methods listed above we will need to track Communications not only for compliance, Best practices and the results we will also need to understand what drove the consumer to pay. Was it the letter that drove them to the payment site, or was it the message they heard while on hold at your call center? We need to be able to track all of those consumer interactions to be able to create best practices.

If you ever heard what I am saying and you are ready to hear more I would love to talk to you. Please call me at 904-687-1687 to discuss.

Phillip W. Duff

CEO Lighthouse Consulting

Do you want to control your companies online reputation on all the top consumer review/complaint websites?

Lighthouse Consulting aggregates your good and bad consumer reviews from over 100 websites like Facebook, BBB, Twitter, Pissed Consumer and Google so your company can easily monitor what your customers are saying about you — in real-time!

You can hear every word stated about your business on Social media. Lighthouse Reputation Beacon is a service that automatically sends a review request to your company or the CEO’s cell phone, scoring new reviews for your business directly on Google and Facebook.

Lighthouse Reputation Beacon aggregates your reviews from top review sites. See what consumers are saying about your agency or law firm, in real-time.

With Lighthouse Reputation Beacon, your business can manage negative reviews with easy-to-use tools to address customer feedback quickly.  Your companies great reviews are collected from major sites are indexed by search engines for higher search ranking

Your positive reviews are auto-published to Facebook, Twitter, website, custom review site and 50+ consumer site.

You can generate a steady flow of positive reviews from your happy customers, via mobile, check-in, SMS & email campaign. And all the aggravated reviews are sent to you in real time so you can take action immediately.

With the Lighthouse Reputation Beacon, your business is found by search engines — accurately and up-to-date — across all the major consumer sites.

Lighthouse Reputation Beacon will generate and download ROI reports showing growth in reviews, ratings, traffic and ROI to support business decisions.

This service is very affordable, to learn more call Phillip W. Duff at 904-687-1687 X 101.

Is Your Payment Website going To Penalized By Google?

Google wants the web to be traveling over a secure channel. That’s why in the future your Chrome browser will flag unencrypted websites as insecure, displaying a red “x” over a padlock in the URL bar. If your payment site is not secure your site can be labeled as non-secure by Google and this could stop your revenue stream.

Lighthouse Consulting provides marketing services to many companies in the ARM industry and we have many programs to make sure your technology is advanced and able to handle todays consumer actions with ease and securely. This is why we felt it important to notify the rest of the industry as we now most of you have no idea of these types of changes till they have been impacted by the changes.

With this upcoming change in Chrome, Google makes it clear that the web of the future should all be encrypted, and all sites should be served over HTTPS, which is essentially a secure layer on top of the usual HTTP web protocol.

Starting in January with Chrome 56, password or credit card form fields on non-encrypted sites will be labeled “not secure.”

In following releases, those warnings will be extended by labeling HTTP pages as “not secure” in Incognito mode, where users may have higher expectations of privacy.

Eventually, all HTTP pages will be labeled non-secure, and the HTTP security indicator will change to the red triangle/exclamation mark that Google uses for broken HTTPS.

If your current website host or marketing team needs a professional edition then call Lighthouse Consulting today and ask for Phillip W.Duff at 904-687-1687 X 101.

Hey Phillip, How do I become successful in the collections field? This was a recent question posed to me recently.

Years ago that was easy for me  to answer and hard to do, now its hard to answer and even harder to do. But there is a clear path to success in 2017 in the debt collection industry its just a big wide, steep road with lots of pot holes that can swallow your whole company so pick the correct lane and do not just follow the car in front of you.

So as a consultant to the ARM industry people ask me often why I do not open my own collection practice and the simple answer is people. Managing people is the biggest problem of every client I have ever had with more than 2 people. But I do believe I have the blueprint to  be successful in 2017 in the ARM industry as a collection agent.

The first thing imperative to success is the people, second is the technology and lastly is the consumer experience. Yes, the debtors experience dealing with your agency or law firm is very important these days.

The People

The staff in a collection operation are very important even though in most cases they are not highly paid. The staff that are actually talking to the consumers are task with producing all the revenue in the old collection strategy. A company of 20 had 12 collectors who had to generate all the revenue to pay the 20 staff, overhead, vendors and the owners profits.

In a newer strategy the collection staff are still burdened with producing most of the revenue but now there is a silent collector who ask for no wages, the payment website. (More about this in Technology)

The collection staff are also task with compliance which is a big task these days one that technology can help immensely. But the support staff are very important in the new and old strategies as every dollar spent by the support staff must be recovered 5 fold by the collection staff and technology.

The biggest problem I see with companies is a lack of training and development programs by the company. The second biggest problem is a person with a golden umbrella within the organization. This can fall into two categories 1) the person is a relative, friend or some connection that the owner refuses see all the faults in and even when confronted with the damage they create still refuses to even discipline the person, much less fire them. 2) Or is a person who is making much too much money due to the length of service to the company. This is stopping the company from hiring 3 new hires, or buying new technology, or just making money.

All the above equal people problems.

The Technology

This is now the new compliance officer and the silent non commissioned collector. If you have a modern software package you should be using it to create compliance by only showing accounts to staff when it is proper to call them, to count contacts, limit letters, to create automation of many tasks and much more. Technology from collection software to your IVR all all now very important to the multichannel collection strategy required in todays electronic world.

You must be sending emails, texts, voice mail drops, calling, letters, IVR and pushing the consumer to self cure at your payment site with every channel. So technology becomes the 24/7 collector as the pay site gathers revenue at Midnight and beyond.

The Consumer Experience

This is a part of the business that is overlooked or over focused in recent years. This includes both the clients experience and the debtors experience dealing with you. As you see from the technology section we are trying to drive that consumer to self cure at our payment site so that consumer experience is very important. You must build a comprehensive pay site that is easy to authenticate for the consumer and then easy to navigate to payment, usually a <6 click navigation.

Also the tone and look of the letters, pay site, voice mails, callers, company website and emails have to create a positive consumer experience.

If you can get the right people, working the right technology and creating the right consumer experience you will succeed in the ARM industry, if you need a guide please call me.

Which star from “Gold Rush” best describes your management style, Parker Schnabel, Tony Beets or Todd Hoffman?

beets

Is it like a Hurricane?

Tony Beets was described as a hurricane manager by his son in the show Gold Rush on the Discovery channel in a recent episode. So what is a hurricane manager? Its a manager that likes to arrive unannounced and immediately begin to question everything that has happened that was not his or her decision. They tend to be loud, look or dress in a manner that is unconventional.

Tony’s son stated that all you can do to weather a hurricane is duck and wait till the high winds subside or it moves on to reap havoc on another location. You try not to get blown away by the storm.

So how do you deal with a hurricane manager? Well from experience I can tell you what happens is the team become a team against the manager not a team with them. The team feels they all have one thing in common, the hurricane as it hits everyone without prejudice so they tend to band together. This is probably how unions got formed.

The staff work well together when the hurricane manager is not present as they have formed a strong alliance and work as a team well. In the long run the hurricane has created the team so the system works but it is all filled with stress.

The largest issue with the hurricane is that all the good things the hurricane blows over and sees improvements in are overshadowed by the team as they huddle together in the corner while the water rises and the wind increases. In many cases the hurricane is very smart and sees the solutions easily but the delivery is so bad the point never gets properly delivered.

If you are a hurricane manager try to reduce the damage by becoming a tropical storm instead, the damage is much less and the staff are much less scared. The best way to do this is to just stop and listen to the staff.

todd_hoffman_gold_rush

Is it based on faith in the leader?

Todd Hoffman’s crew is called 316 Mining because they share a faith in God. Todd’s management style would also be best described as faith based. The 316 crew seem to have many issues just like all the other crews featured on Gold Rush but they do have one clear direction and that is to get gold and they have faith that they will find the gold. They have faith that God is really leading them to the gold not Todd Hoffman, not that they believe he is hearing words directly from God, just that God is in charge of everything and it will all work out if they keep the faith and be good followers.

So when the team disagrees with Todd they tend to be less likely to revolt as they have faith. They have faith that Todd is the leader for a reason not known to them but their faith leads them to follow the leader.

Faith is about followers and a team that follows the leader is great until the leader gets in over his or her head or leads the group off the path. This makes for a great team as long as the leader is truly a leader and can lead without the help of his crew. But most leaders are truly great because they have a great team of advisors.Like a President that has a group of advisors the best leaders also use this method to lead.

A leader like this will be very successful because he or she has a great team that will follow them anywhere.

parker

Is it a bit risky?

Parker Schnabel is very well liked by his crew and the watchers of the TV show Gold Rush. He has a likable personality that is laced with a high level of risk taking, something inherent to the idea of gold mining and with his young age. His management style follows that same flow as he is constantly trying a new machine or a new piece of ground believing that each will be better than the last.

Parker leads by example he will do any job on the gold mine and in fact prefers to do it himself it possible. He has almost driven equipment off a cliff and had many close encounters as he pushes the limits of the ground, his crew and his equipment. But his crew want to follow him because he is so hands on as a manger. The crew just follow his lead to push the equipment, ground and themselves to the breaking point all to make Parker proud of them.

This is a great management strategy as long as you don’t actually fall off a cliff. The team is one that needs little direction to get motivated they just need to follow the leader. The issue is when the leader is absent the team is lacking that level of motivation to make the leader happy.

Lighthouse Consulting Provides An Advertising Opportunity

Lighthouse Consulting does marketing for many vendors and providers in the ARM space. We create websites, web marketing, content creation, ghost writing for things like blogs, social media management, remarketing, set up sales campaigns and much more.

If you are interested in getting your product in front of the decision makers then we are your platform for blast emails as Lighthouse has a loyal newsletter following that sends to well over 15K emails.

Lighthouse is offering ad space in it’s newsletter if you are interested in any of these services please contact Phillip W. Duff at phil@lighthouseconsultinginc.com or at 904-687-1687 X101

Jamacian Call Center News

One of the services provided by Lighthouse Consulting is near shore call center management, consulting and agency set up, particularly on the island of Jamaica. So in order to better educate my US call center operators I will start providing information about call centers that are involved in debt collection, debt settlement or other ARM services in Jamaica.

an overturned boat on the beach in the Caribbean. Boat is painted "Rasta" colors.

an overturned boat on the beach in the Caribbean. Boat is painted “Rasta” colors.

Let’s start by giving you some information. Jamaica is a major call center destination receiving and making calls around the world to English-speaking countries. Call centers handle everything from Pizza delivery orders in Montréal, Medicaid healthcare products sales, Cable TV sales, debt collection and many other projects. There are tens of thousands of trained call center workers in Montego Bay and Kingston. Vistaprint has they’re only worldwide call center in Montego Bay and is one of the major employers of the city. Delta, Fingerhut, American Airlines, Insurance companies and many more all use call centers on the island.

I first came to the island as an auditor for collection accounts that were placed in there with Alliance One in 2000. So as you can see the island has a long history of debt collection. In future articles I will provide information on some of the call centers that currently exist on the island and how they may Bring value to your debt collection operation. With the average wages for a trained bill collector in Jamaica equaling half that of the US and similar results, the ROI is easy to caculate.

Reasons to use a Call Center in Jamaica

English is the primary language 

Accents are mild and pleasant

Jamaica is a call center hub

Favorable wages 

ROI is high VS USA staff

Close to manage (1 hour flight from Miami, 2 hour flight from D.C.)

Work lower unit yield accounts at a profit

Data entry and admin functions

Insurance reps

Transfer agents

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“¡Me pica qué, me rasca aquí! Translated “It itches me here, but you are scratching me there.”

The Quote above is from Judge Million of People’s Court. In the court case, the judge quoted this Cuban phrase, describing a defendant’s avoidance in answering her question, by answering a different question.

judge-milian-photos-i18

Question avoidance, intentionally or unintentionally, is a common issue in the debt collection process. The agent is seeking specific information that will help him or her collect the debt. Yet they ask a question that leaves the door open for a variety of answers. The individual on the other end of the line ends up providing useless data to the agent.

A debt collection call is much like the job interview process. Many common questions are looking for specific answers, even though the question is vague. For example, it is common to ask an interviewee to, “tell me about yourself.” The manager wants specific work history that relates to the job in question, helping the interviewer to evaluate their work experience. If the applicant responds with places they have lived and their growing up years, this information does not provide valuable insight regarding the type of employee they are. Employers are fortunate that most job applicants understand the questions intent and give the manager what they want, even when questions are obscure.

The collection industry does not work with customers educated in the debt collection process. Consumers require more guidance and handholding, in the form of the right questions. Customers are not typically experienced with the debt collection process, and may be hesitant to cooperate because they don’t want information they provide used against them.

It is the agent’s job to ask quality questions that provide clear guidance on the information they need, and this comes with proper training. Staff training is essential to your business because the agents must remain compliant with regulations, obtain valuable information about the consumer’s financial situation, and bring them into an agreement on a payment arrangement. Those are not the skills of a rookie.

In order to avoid the situation faced by Judge Million, agents must have the grace of a Gazelle with the questioning skills of a lawyer. They must lead the consumer to the conclusion that the agent will help them pay off the debt within their financial constraints and move the collection process forward. Lawyers much like debt collectors must phrase each sentence in a specific manner to increase the likelihood of gathering useful information.

Lighthouse Consulting has almost two decades of experience working with companies just like yours. Their industry experience can train your staff to quickly and efficiently obtain the information required to collect on the debt.

Contact us today to learn how we can increase the efficiency of your staff through proper training.

My Recap of the Denver ACA Conference 2016 and Comic Con 2016

The 2016 ACA conference in Denver was refreshing, to say the least. It was apparent from the moment I arrived that this was going to be a different conference. Not only was it an educational event full of enthusiasm, but the week also coincided with Comic-Con and Denver gay pride week. The city was lively with activities and fun events, creating many memorable moments.

Even though the Costumes from Comic Con were very distracting, (not to mention FUN), my biggest takeaway from the ACA conference, is that the industry is alive again.

27674227832_85dde03242_bOver the last few years, with all of the compliance issues and a decline in placements, the industry has experienced a theme of doom and gloom. This year, Denver’s conference reflected an optimism and upbeat attitude towards the future. Companies were anxious to find solutions that would stimulate growth and a bright future for industry leaders.

Compliance, which was the main topic over the last few years at ACA, DBA, and NARCA, was a secondary topic, rather than the primary focus. It seems the industry has gotten used to dealing with the compliance issues of today’s collection environment and are now looking for ways to perform business at a higher level that still produce acceptable profit margins.

The decision-makers I met with were looking for technological and operational improvements for their collection agencies or law firms, rather than just moaning and complaining about the increase in regulation. It appears the mourning period is over, and now we are ready to morph into a new life. Companies are focused on opportunities for automation, process flow improvements, more profitable vendors, and advances in technology opportunities that can improve their bottom line.

Vendors like Vo Apps have been around for many years and are now getting traction as the industry is ready to try something new.

There was a lot of buzz at the conference regarding the merger of Columbia Ultimate and Ontario Systems. The two vendors set up booths next to each other and took advantage of all the questions and interest regarding the recent merger acquisition. I expect it to take a year or before we will fully understand the direction of the new company.

There was a smaller number of vendors in the exhibit hall, but that has been a trend at each of the conferences in the last three years. Several new vendors to the industry were represented, and a few from the old guard were noticeably missing. Based on the vendor selection custom programming, contact management, data append, and software development made up the bulk of the service providers.

Overall, I believe the industry has turned the corner and is looking forward instead of backwards or just looking down at their feet. Even though the industry is very challenged by compliance and a lack of placements, it appears that providers who are forward thinking will lead the industry for many years to come.

To learn more about my thoughts or recommendations going forward, or if you just want Comic-Con photos, please give me a call at 904-687-1687 X 111.

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The Truth About Debt Collection Emails

Email vendors have become the used car salesman of the debt collection world. They are more focused on dated platforms and strong armed sales tactics to scare collection companies into buying their services, than providing meaningful solutions.

notification-of-new-message-on-smart-phone

Common tactics include convincing debt collection companies that you must send an encrypted email with a PDF of your collection letter to be compliant. They claim that you have privacy responsibilities that stop you from doing it any other way and the BEST delivery method they offer ensures the delivery of the email. These companies offer minimal reporting that confirms an email was delivered but shows no record of whether it was actually received or read. For example, if you send an email to John@debtors.com, who is to say it did not wind up in the consumer’s spam box? Most email vendors tell you this is all the reporting that is available.

Well, guess what? Most email platforms can only complete the above tasks because they have not invested in the newest available technology. It is easier to convince you nothing else is available than to update their platform to more useful technology.

The truth is that you can deliver emails to the consumer’s inbox. Dynamic reporting paradigms are available, but the service costs extra to vendors, so they avoid offering the additional services. Reporting can tell you when and where the email was delivered, read, opened, deleted, saved and much more. The technology available identifies if the consumer clicked a link and visited your payment site. We can track how long they were on your payment site and what the outcome was.

You can send emails with no consumer ID info or ID to the debt and not encrypt them! We can set up triggers in the email platform that send an email based on the consumer’s actions. Let’s say the consumer gets the email and clicks to the payment site and then authenticates himself. They view a monthly payment offer and then abandon the pay site without completing the transaction. We can set a trigger that sends them an email asking if he needs help paying or wants an agent to call?

With the use of Message Transfer Agents (MTAs) you can communicate via email, through a secure connection, authenticate the user, and provide repayment solutions to the debtor, through their preferred communication channels. This technology is available today, and SoftVu specializes in helping debt collection companies streamline collections in a cost effective way.

Email communication is the future of debt collections. Other vendors are way behind in their technology. But I have your back! Reduce your costs of collection and regain control of your collection strategies through today’s latest technology.

Call me for more info at 904-687-1687.