Collection letters are written in series. Each successive letter comes stronger in tone. However, letters should be written in such a way so as to collect the dues promptly by maintaining relationships with the customers. A thorough consideration of the following factors may help the seller to achieve the goal of writing collection letters:
- Expressing regret: In collection letter, the seller should regret that the account of the customer is still unsettled.
- Mentioning the dues: The amount of dues, due date of payment, terms of sales etc. should be clearly included in the collection letter.
- Persuading the customer: In writing an effective collection letter, an attempt is to be taken to persuade the customer to pay the bill promptly.
- Honour to the customer: The language of this letter should be courteous, polite and gentle. It should be written in a motivating tone. No such word that can hurt the customer should be used.
- Considering the nature of customer: In writing collection or dunning letter, focus should be given on the particulars of customers like their previous dealings, position in credit rating, goodwill, business honesty, size of business, present circumstance of the customers etc.
- Mentioning the reference: If collection letter are written in a series, every subsequent letter should mention the reference of the previous letter.
- Giving importance to the customer: In order to realize the dues, the seller needs to put importance and value upon the customers. For doing so, the seller can use some motivating words or phrases.
- Indicating legal action: If the customers do not pay the dues after sending reminder and appeal letters, the final letter of the series should be written by indicating that necessary legal action would be taken against them.
- Sending through post: The seller should send collection letters especially, the last letter of the series through registered with acknowledgements. It helps to avoid unnecessary delay or missing of the letter, or denial from the part of the customer.
Finally, we can conclude that the ultimate goal of a collection letter is to maintain goodwill while getting overdue payment form the customers. Lack of concern about customer’s goodwill cause them to do business elsewhere. Therefore, collection letter should always rely on the art of persuasion.