3 Great Ways Creditors Benefit through Customer Retention Strategies Using Debt Relief Companies

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Debt relief is any form of debt management arrangement where a debt is either fully or partially restructured so that it is more manageable by the debtor. The restructuring can be in the form of:

A lower monthly payment

A reduction in the outstanding amount

A reduced rate of interest for the loan or

An extended loan repayment period

Usually, creditors who have held their customers debts for a long time, and feel that they have bad debts with their customers, usually seek to get out of the relationship as fast as they can. They usually write off the debt, sell the debt or try to recover the debt using the debtor’s assets.

Debt relief companies such as http://www.nationaldebtrelief.com/ try to bring both the debtor and the creditor to agree on new terms that will allow the creditor get some money back on a bad debt and for the debtor to get an opportunity to repay his debt.

Customer retention strategies are geared towards keeping the customers, who you have had a relationship with, to remain as your customers even after difficult circumstances have tested the relationship.

This is why customer relationship strategies can be very important in debt management. Instead of ruining relationships, the creditor will try and come to some sort of understanding with the debtor so as to resolve any issues in an amicable way.

Find below highlights of some customer retention strategies that creditors can employ through debt relief companies.

1.Reducing attrition

Instead of naturally letting relationships slip and allowing consequences on bad debtors take their course,  sometimes, it may be easier for the creditor to negotiate with the debtor through a third party such as a debt relief company.

The debt relief company can act as a sort of arbitrator to find an amicable solution that will allow the debtor to pay the debt in a manageable manner that is agreeable to the creditor.

2.Bring back successful debt relief candidates

Creditors can use the experience that debt relief companies have with their clients to bring back customers who have repaired their debt status.

Instead of spending a lot more money on new customer acquisition, a creditor can use the knowledge of debt relief companies to bring in customers who have successfully managed their debt. These customers are also very likely to be better customers due to their experience.

3.Unearth all complaints and act on them

Since debt relief companies are there to help debtors, it is easier for them to gather customer complaints and feedback about creditors. Creditors will then be able to adjust their business practices to better accommodate all customers, whether new ones or existing customers.

Customers who complain are basically giving you another chance to improve and be able to satisfy them. This is better than a customer who leaves and doesn’t tell you what the problem was. By acting on the complaints, you will be able to retain more customers and build customer loyalty.

There are many other customer retention strategies that creditors can employ to retain clients. Hopefully these ideas will spark you to come up with a few more that you can use.

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James Patrick
James is a financial expert who has contributed several business and finance related articles. His expertise and first-hand knowledge of economics makes his blogs and articles informative and helpful for those looking out for guidance and assistance in matters related to finance. He has an active schedule of TV and radio interviews He is co-host of the popular VT Radio show Jim and Gordie Show. latest-articles-buttonJim comes from an old military family dating back to the American Revolution. Dozens of Confederate ancestors fought for the South in the War Between the States. Uncles fought in WWII and Korea. His father was a WWII P-40 and later P-51 Mustang fighter pilot. Vietnam found several uncles serving, a cousin, and brother Wendell as a young Ranger officer. His mother was a WWII widow at 16, her first husband killed with all 580 aboard when the SS Paul Hamilton, an ammunition ship with 7000 tons of explosives aboard, was torpedoed off the coast of Algiers. He has been writing, speaking and doing public relations, television, consulting and now multimedia work for a variety of American heritage, historical, military, veterans and Intel platforms. Jim’s only film appearance was in the PBS Looking for Lincoln documentary with Prof. Henry Lewis Gates, and he has guest lectured at the Army Command and General Staff School at Fort Gordon. Currently he is working to take his extensive historical video archives on line to assist his affiliated organizations with their website multimedia efforts, such as the Military Order of World Wars, Atlanta, Sons of the American Revolution, Sons of Confederate Veterans , Assoc. for Intelligence Officers, the Navy League, Georgia Heritage Council, National Memorial Assoc.of Georgia.

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