Collecting Past Due Payments
Whenever an account comes up in Club Ready as past due for payment, we want to reach out right away to the member as a service to help return their account to good standing.
If a member is in default:
Their credits have a hold placed automatically and they cannot book
We have 10 days to bring their invoice current before a late fee is automatically assessed our corporate collections team starts calling them (!)
It is an inconvenience and annoyance to them to deal with
We often work with an affluent group of people. Be sensitive and respectful when a card doesn’t work. It could be an innocent error and members may be embarrassed about this. Reasons for a declined card could include;
They need to move money from one account to another
their current credit card has expired and they just have not thought of giving us a new card on file until we call them
a banking errorFraud or lost or stolen card (many clients travel often)
Changed accounts
Holiday shopping maxed them to their card limit… many reasons!
COLLECTIONS STEPS:
We always want to reach out with respect, empathy and caring and from a place of problem solving for our member when we initially contact them. We always want to do this first by phone and NOT by text message, again because tone is so important
Often we can
reach them with one call
they give us a new card on file
Run their past due invoice for payment in POS while they are still on the phone to make sure there is no issue with the new card.
Finish the call by asking what benefits they are seeing from stretching and make sure they have app access so they can book their next session or offer to block it for them (it may take 1-3 business days for the hold to come off their session credits in Club Ready as this has to be manually done, so we can help book them in the meantime).
Once the invoice shows paid, set a task for your Regional Manager to remove the payment hold on their sessions so they can start booking again. Club Ready does not automatically remove the block when payment is made.
IN PERSON LIVE CALL SCRIPT:
If you reach them in person on the phone you can use language like this:
“For whatever reason it looks like the card we have on file did not go through this month. I wanted to reach out and get a new card on file for you so you don't have any interruptions in scheduling your stretches. Are you able to take a moment and read me a new card so I can take care of that for you right now? Great!”
They may offer an explanation or not. Go throught the steps above. If there is an issue to address, involve your LSA as appropriate. Note your conversation.
FOLLOW UP COLLECTIONS:
If you call on the phone and you are not able to reach them, we do NOT want to leave a message about personal financial information on the first call. Instead, use the scripts below and follow up with a similar text.
We want to do all we can to help remedy their past due bill right away, because after the 10th day they are assessed a $20 late fee and our corporate collections team begins to call them to collect on the invoice. It’s always best if we can reach them first - these are our members! We know them and can work with them, and we certainly don’t want them hearing about an account issue for the first time from a collections company! Automated tasks will continue to generate to remind Sales Associates to call again.
Days 1-3 Past Due:
Example Early Voicemail Message: “hello this is [EMPLOYEE NAME] with Stretch Zone looks like I need some additional information on your account. Please give me a call back here at the studio as soon as you are able to. The number is xxx-xxx-xxxx”
(The information we are missing is a valid card on file). This is a nice, soft first attempt to respectfully reach them and give them an opportunity to fix their account. Often, once they hear the message, people may have an idea of why we called and will call right back to fix it.
Days 4-7 Past Due:
Add polite urgency “... we need to hear back from you right away to fix an issue on your account…”
Days 8-10 Past Due:
“[MEMBER NAME] this is [EMPLOYEE] with Stretch Zone. It’s very important that you call me right away. There is an urgent issue with your account and I don’t want you to be negatively impacted by it, so please call us back at xxx-xxx-xxxx. We are open today until xPM”
Let's work together as a team helping our members have a great experience and continued relief with us. Invoices are what pays our payroll, buys snacks and pays for parties as well as rent and expenses. Thanks for your help in keeping our business running strong!
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