Boost Profits on Easy Payment and Other Credit Offers
By Robert Graham, SVP SKO Brenner American
If you are a merchant or service provider, offering flexible credit options can help convert more sales. Beyond extending a line of credit, other credit options can include multi-pay, easy-pay, bill me, free trials, installment plans or other continuity programs. Offering these types of credit terms to your customers and prospects will certainly lift your order response rates significantly. A good credit and collections policy will:
- Stimulate qualified response
- Reduce promotion costs
- Protect from non-essential write-offs.
However, when you make the sale and fulfill an order with one of these credit terms you have created an account receivable that has a risk of default during its repayment cycle. Credit offer default rates can range between 5%-15% of orders fulfilled. Having the right customer retention and collection program can make the difference.
SKO Brenner American, a national billing and collection agency, has developed turnkey solutions to overcome customer retention and collection challenges that Direct Marketers face. SKO’s resources are focused on re-establishing contact with the customer to resolve the delinquent situation and salvage the relationship with the marketer.
Dependent on age and source of the delinquent account, SKO can represent the marketer or merchant either as the “Customer Service” department of the marketer for “First Party” contact. Or for older or previously contacted consumers, SKO can act as a “National Collection Agency”.
Historically SKO Brenner American has converted between 35 – 50 % of our customer’s delinquent accounts to a “paid” status. About one-half of these accounts were converted during the “customer retention” or “first party” contact period, thus restoring their relationship with the marketer for future continuity shipments or new product offers. This results in higher customer retention and longer-term profitability.
The recovery campaigns are a coordinated collection effort between SKO and our marketing clients to provide:
- An extended letter series postured as the client and or collection agency
- Customer care call center for inbound and outbound contact
- Proprietary billing system designed to support Direct Marketers
- Metrics analysis and performance reports
Pricing options for SKO Brenner programs include being self-funding with the majority of cash recoveries remitted to the client, contracted on a fixed fee for service, or in tandem with a risk-free contingency program. Fees will vary dependent upon type and length of recovery campaign selected.
Visit our http://eleadsmanager.com/sko to learn more about SKO Brenner American
Senior Vice President - Consumer Division