Debt relief is the restructuring of debt so as to ease the financial burden that a debtor may have due to the inability to pay the money owed.
Creditors usually offer debt relief when they deem a debtor’s situation so severe that, there is a risk that the debtor may altogether default on the debt.
Companies that offer debt relief, like NationalDebtReliefPrograms.com, usually have customer retention in mind because they look at their relationships as long term investments in their customers.
Debt relief and customer retention strategies are a good marriage because both intentions are the same. A lender wants to make sure that they keep the debtor as a customer, while customer retention strategies clearly have the same goal.
Below are some customer retention strategies that a creditor offering debt relief can employ in order to keep debtors, and ensure loans are at least partially, if not, wholly paid off.
- Forge real and long term relationships with your customers
Doing things as simple as knowing your customer’s names and personal details can make you more personable to your customers and thus make your customers loyal to you as well.
Treat each customer like they are worth a lot to you and they will reciprocate your intentions.
- Incentive customer loyalty
Find a way to incentivize your customers for being loyal to you. Offer incentives that your customers will see as a gesture of appreciation. This strategy will always work in your favor.
- Keep your promises and manage expectations
Avoid making promises that you cannot keep and manage the expectations of your customers so that you are as dependable and predictable as possible. You could also gain a lot of favor if you under-promise and over deliver on your commitments to your customers.
- Professional employees
Customers usually dislike two types of customer service.
- Aloof customer service that makes them feel ignored and not catered to.
- Over-bearing customer care where the customer is not given space to breathe.
Both extremes are not good. Your employees should be trained to cater to customers’ needs in just the right way so that the customers can enjoy their experience whenever they think about your business or interacting with your staff.
- Cross-promote other businesses or services
One great way to retain customers is to recommend to them services that you feel they will need. For example, you could recommend a credit counseling officer, or a business development officer, to a customer who owns a business and who has probably let you know of a difficulty he/she is going through with their business.
By observing these customer retention strategies, debt relief companies will find that their overall bad debts will reduce because their customers will remain loyal to them even in difficult financial times. The idea to keep in mind is that often, debtor’s financial cycles can change for the better and as long as the creditors have the debtor’s loyalty, the relationship and debt can be salvaged.