B2B Customer Service: The Competitive Edge

Just as consumers on the high street expect a good level of customer service, businesses too expect their service providers to respond effectively to their needs, particularly if a problem occurs. Rather than selecting a contract solely on the basis of cost or "product," customer service levels and a demonstrable code of ethics are increasingly important considerations.

This is especially so in the debt collection industry, where working with more than one agency is standard practice. While there is an obvious need for an agency to demonstrate professionalism in all its working practices, a positive customer relationship experience can be a determining factor in winning new business, particularly when there might be issues to overcome along the way.

Managing Expectations

The expectations of a client/customer relationship and the way in which it will be handled are generally determined in the selection process. Tenders seek to uncover whether a DCA is a member of the Credit Services Association (CSA), and such details as its insurance cover, its complaints procedure, collection facilities, quality of -- and investment in -- its personnel, and its commitment to working with them to meet their targets.

To ensure the latter, at the very least the client needs to be assured that the client relationship will be built on honesty and openness that will engender trust in the long-term; conversely the agency needs to know the client is also working toward long-term goals, as investment is expensive and occasionally underestimated by the client contact.

At a practical level, it is important to ascertain how the client handles its customers when in default. It is particularly important, for example, to understand at what stage a customer will be instructed for further action, what actions are permitted, and whether there are any constraints to those actions (for example litigation permitted only on balances above a specified amount). Audit conditions are increasingly important, and alongside internal and external accountants and ISO auditors, many if not all clients will want to audit its chosen agencies.

Setting out expectations of both parties is key to establishing good working relations from the very outset. This relates to both performance measurement criteria (for example monthly collections against balance instructed/outstanding and the speed of settlements) and the frequency and location of face-to-face review meetings. In many cases reciprocal site visits are deemed vital for the respective organizations to better understand each other's working culture and practices, and thus nurture mutually beneficial relationships.

Managing Relationships

With the rules of engagement set and the client's needs understood, the management of the client relationship is accorded to a senior level client account manager. Their role is to act as the principal point of contact, the regular liaison between Agency and client to ensure that service level agreements (SLAs) are being adhered to, and that any issues raised are quickly and effectively resolved with appropriate escalation procedures to director level defined if required.

In terms of managing a relationship, greater confidence can be engendered between both parties when they know that if there is a problem, it will be taken seriously. There can be nothing more damaging to client relations than the feeling that complaints are not being listened to, and that questions are not being adequately answered.

Regular review meetings, of course, help prevent a minor irritation from becoming a major issue. They are the benchmark for reviewing performance, and provide the opportunity to recommend refinements to operational procedures where they can be to the client's advantage. Transparency is key, and 360-degree feedback encouraged.

Of course there may be difficulties along the way, and so time should be invested in developing and building relationships at all levels of the business, and not just day-to-day contacts, but any stakeholders who may influence decisions in the future.

Competition within the collections industry is fierce, and there will always be those willing to take on new business as a loss-leader in order to gain market share. Clients too may be tempted by such approaches, that on the face of it appear to offer a better "deal." Some might also be tempted to use them as a lever to drive a harder bargain form their existing agency. This is where relationships really count. Understanding a client's needs at both a tactical and a strategic level helps the incumbent to stand out, but that does not mean that they can rest on their laurels. Client satisfaction surveys should be issued regularly and feedback used to continue to drive improvements. Being proactive is one of the keys to success.

League tables

As the agency expects to be measured against the competition, proper use of the client league table information is important to improve performance. The Lewis Group, for example, maintains internal measures with frequent monitoring to ensure collections are driven proactively. This will always be one of the key focuses alongside ensuring all relevant regulations and legislation are strictly adhered to, attention to TCF (Treating Customers Fairly) is applied throughout and minimal or no complaints are received.

There is another saying in business that customers often buy a product, but then stay for the service. This is perhaps also true of the collections industry. Differentiating what are often outwardly plain vanilla services can be a challenge. Strong customer service is key, and ultimately provides the opportunity to 'sell' a broader range of services that can help clients with their wider business objectives.

While good customer service is unlikely to be the sole consideration when choosing a DCA, it clearly ranks of great importance in ensuring a smooth and mutually agreeable working partnership, offering greater potential for further projects or contracts going forward.