Factors in Successful Collection

Success in collecting over-due accounts by letter depends largely on three factors:

1. Knowledge of on's customers.
2. Systematic follow -up.
3. Good Tone.

1. KNOWLEDGE OF CUSTOMERS:
Successful collection required not only broad knowledge of human nature, but also a knowledge of  business background and paying habots of on's customer. The writer of collection letters must realise that the people are sensitive about their credit standing end, so must he handled with care. Generally, business firms clears off their accounts more readily than indivisuals, but even business concerns some time fail to pay their bills ontime.
Many companies classify customers as (1) every good risk, (2) good risk (3) poor risk. But even the "very good risk" will need the extension of time if he has suffered from fire or some natural hazard, or illness, etc. The writer must Know or discover such circumstances if he is to adapt his collection letters to his readers and collect the overdue accounts , and retain the goods will of his company.

2. SYSTEMATIC FOLLOW-UP:
A customer is reminded when payment becomes overdue from him. The first reminder is only a biginning. If he fails to pay off his debt, he is sent a series of reminders one after the other. The pressure in three reminders increases steadily and gradually until finally he is threatened is consistent and unremitting, The customers, therefore,have developed a respect for the collection system. The timing of these follow-up letters is an important factor. If the customer is a good risk, he should be given enough time before he is threatened with legal action, conversely, the poorer, the risk,the shorter the time.

3. GOOD TONE: 
Collection letters, even more than others types of correspondence, require good tone. It depends on the respect and consideration for the recipient of the letter as an indivisual. The language used in a letter of collection should be temperate, especially in difficult situations. Common mistakes in tone are anger, scolding, bullying or threatening the customer. This should never be done. The letter must be written in tactful language and good tone.

Tone of Collection Or Dunning Letters

Tone of Collection Or Dunning Letters
No where  is tone more important  than in collection letters. It should be kept friendly up to the final legel break, after which the customer himself must decide whether he wishes a resumption a friendly  relations. Courtesy is possible even in letter of force .Collection letters never need to make themselves offensive with rudeness of insulting phraseology . We should always avoid tones of anger ,contempt and insult . "I cannot understand how a man of your supposed standing in your community can absolutely ignore his obligation". These words are insulting and dangreous. Certain standards of courtesy ,decency , and acceptable manners must in all circumstances be observed.

If credit has been wisly extended ,most of the outstanding  accounts can be collected not only with out punishment but also in a cheerful tone. "Business is friendship , not warfare". sharp language  and insistent threat should be held in reserve , to be calles upon only in the ultimate emergency. The cheerful tone can bring about astonishing  results. Note the following reminder.
It is brief ,cheerful , courteous and successful.

Dear Sir,
It is not going to take much to balance yout account because you owe so littel.
Only $100/-
It is for our bill of march23
will you please look it up and take care of it today? Here is an envelope.

                                                                                                   Thank you

Enquiry Letter for Holiday Accommodation

                                                                            Jun 15, 2011

The Proprietot,

The Holiday Inn,

Muree.

Dear Sir,

              Your hotel has been recommended to me by Mr. and Mrs Niaz, who tell me they spent a very happy fortnight with you last summer.

              I am planning to bring my family to Murree for two weeks between mid july and the end of august and hope you will be able to accommodate us. we require one double room and two single rooms . There will be my wife and myself and our son aged twelve and daughter aged fifteen.

              Our holiday arrangements are fairly flexible and any two consecutive weeks within the period mention would suit us.As i wish to complete the holiday arrangements in good time it will be most helpful if you could give me any early reply.

                                                 Yours faithfully,

                                                Saqib