Coloring your collections, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association.

October 15-17, 2014 - CreditScapeConference.com - #creditscape

Diana CroweIAB SolutionsOctober 17, 2014

Coloring Your Collections

THE POWER OF PERSUASION

• Motivational Value Style (MVS)

We all do what we do in order to feel good about ourselves; that is, we act in order to satisfy our

needs (i.e. what motivates us)

In the credit and A/R world…Our Needs = Money

Review Common CharacteristicsBehaviorsValuesHow others perceive our styleWorking with other stylesCollecting from the colors

TRUE BLUES

TRUE BLUESAltruistic-Nurturing

LoyalFriendlyDependableEasy GoingSupportiveResponsiveCooperative

TRUE BLUES

Basic Value System

Genuine Concern for the Protection, Growth and Welfare of others with little thought of material reward in return.

Open and responsive to the needs of othersAlways looking for ways to be helpfulWant to make life easier for others and avoid being a burden.

TRUE BLUES

Difficult to determine what they truly want.

Negotiations challenging – not sure what their “win” is.

TRUE BLUES

Typical Behaviors

• Unhurried reactions• Maximum efforts to relate• Minimum concern for effecting change• Current time frame• Tend to reject conflict

TRUE BLUESIN SUMMARY

MAIN VALUE:

NEED:

SPECIALTY:

WEAKNESS:

People & Relationships

Stability

Support

Reluctance to Initiate Change

TRUE BLUESCollecting from Blues

Take note of any personal information they share (kids, vacation, pets, etc.) When you follow-up, ask!

Reds especially need to be careful – push too hard and a Blue will shut down, back away and, whenever possible, avoid your calls in the future.

Developing relationships with our customers is always important – with a blue, it’s critical!

RED HOTS

RED HOTS

Assertive-DirectingObjectiveDeterminedRequiringDecisiveIndependentPragmaticEfficient

RED HOTS

Basic Value System

Seek gratification through their concern for the accomplishment of tasks

They want to organize people, money, time and opportunity and any other resource towards that end.

They have a clear sense that through their accomplishments, they have earned the right to be rewarded for success.

RED HOTS

Typical Behavior

Swift ReactionMaximum effort to controlMinimum concern for caution in relationshipsImmediate time frameDirect actionTend to reject inaction

RED HOTS

Difficult to work with (can be a bit bossy at times)

Very “bottom line” driven…which sometimes leads to stepping on toes, etc.

RED HOTSIN SUMMARY

MAIN VALUE:

NEED:

SPECIALTY:

WEAKNESS:

Action

Results

Control

Don’t always listen orSeek input – simply act!

RED HOTSCollecting from Reds

Be Prepared! Have all your facts and information ready before you call. Get straight to the point.

Be Direct. Reds respect the bottom-line – deliver.

Note what form of communication your red responds best to: Email, Phone, etc. Utilize that format first. If response level changes, something else is typically going on.

COOL GREENS

COOL GREENSAnalytical-Autonomizing

IndustriousPersistentSeriousPreciseSystematicDetail OrientedExacting

COOL GREENSBasic Value System

Great concern for self-dependenceNeed assurance that things have been thought through and sorted out so meaningful order is achieved and maintained.

Objective and in control of their emotions.Cautious and thorough; fair and principledAlways want to think before they act.

COOL GREENSTypical Behavior

Slow reaction timeMaximum effort toward organizationMinimal concern for relationshipsHistorical time frameCautious actionTends to reject involvement

COOL GREENS

Difficult to work with due to long analysis time... hesitation to commit

Analysis Paralysis

COOL GREENSIN SUMMARY

MAIN VALUE:

NEED:

SPECIALTY:

WEAKNESS:

Thinking

To Be Right!

Details & Systems

Inability to Declare

COOL GREENSCollecting from Greens

Don’t skip on the details!

Emails are typically their preferred method of communication as it allows them to have and process the information without undue pressure.

Know when to escalate. Analysis paralysis can make it challenging for them to complete a review and set up your payment when there are disputes.

RAINBOWS

RAINBOWSFlexible-Cohering

ImaginativeEnthusiasticOutgoingFun lovingStimulatingAmbitiousSpontaneous

RAINBOWSBasic Value System

Open minded and willing to adapt and change

Like to know a lot of people and be known by a lot of people.Consider flexibility to be a key factor in their success

Concern for the welfare of the group, membership in the group and flexibility in pursuing group goals.

RAINBOWSTypical Behavior

Rapid reactionMaximum effort to involveMinimum concern for routineFuture time frameImpulsive reactionTends to reject isolation

RAINBOWS

Considered “wishy-washy” at times.

Greens consider them highly emotional.

Blues consider them highly demanding.

Reds consider them too sympathetic.

RAINBOWSIN SUMMARY

MAIN VALUE:

NEED:

SPECIALTY:

WEAKNESS:

Intuition

Approval

Social Skills

Not Checking

RAINBOWSCollecting from Rainbows

Potentially challenging as their color may change from contact to contact.

Because they change to suit the situation, you can opt to deal in your preferred style.

Remember their main need is approval, formulating your approach to recognize them for the value they bring to the trading partnership.

IAB SOLUTIONS

When Positive

GREEN18%

RED14%

RAINBOW22% BLUE

46%

IAB SOLUTIONS

When In Conflict

RAINBOW 6RED 13% BLUE 34%

GREEN 46%

RED - BLUES

Assertive nurturing types: Compete to win for the sake of others

RED-GREENS

Judicious Competing:Want to outwit the oppositionWithin the limits of the rules

BLUE - GREENS

Nurturing-AnalyticalWant to use their head to

Be of help to others

IN CONCLUSION Know your Color (MVS)

Learn to recognize the Color (MVS) of others

Use what you know to collect and communicate better!

Wanna talk some more? Have Questions?

Diana CroweDCrowe@iabllc.com

630-537-0840