Legal Collections and Attorney Letters are way too much!

Gym Collections

It’s kind of like using a sledge hammer on a thumb tack. Yeah, it gets the job done, but the collateral damage is unnecessary and causes more harm than good.  In an industry where the lifeblood of your future revenue depends solely on how you are perceived within your local community, do you really believe a member who owes you for a past-due amount of only $100-200 truly deserves to feel threatened by a law firm.  It is widely known that consumers truly believe they are being sued when an attorney letter pops up in their mail box, when in reality a lawsuit is never even considered by the firm that sent the letter (It just would not be cost-effective to file suit).  

The alternative is to partner with a collection agency who has your best interests in mind (an agency with a lot of experience in health & fitness), and cares about your future reputation.  Look, consumers know that if they fail to pay a bill on time, there are repercussions for their delinquency, and generally speaking it is understandable if a collection agency chooses to report the unpaid balance on the consumer’s Credit Bureau Report.  The collection tactic that works best is to simply appeal to the consumers’ good nature and simply inform them of their obligation to fulfill the contract they signed…, and try to work with the member and get them back into the gym…, not threaten to sue them!

Yes, there is a time and place for a collection attorney, but it’s not on balances that fall below $1,000. It is overkill, and you will see the negative impact after the damage is done, and it’s too late.

Professionalism and common sense always prevail.

Learn more about First Credit Services, and their professional Collection Approach which is geared toward Member Engagement, and maintaining a very positive reputation for everyone involved. Maybe that’s why we maintain a perfect A+ Rating with the Better Business Bureau…

Who will we see at Club Industry next week?

The Club Industry Show is a great event to reconnect with many fitness industry leaders and showcase new and innovative ideas, programs, or products.

The Fitness Equipment is always the biggest hit, but if you are a gym owner looking for new software, billing & collection tools, marketing and sales CRM platforms, there are plenty of great companies to meet with.

See you there!

Volatility in the Marketplace (Collections)

State and Federal Compliance Standards are causing many collection agencies to look in the mirror and rediscover what really works for them.  You will find that collection agencies are becoming specialists within very specific business segments and not simply taking on business that does not fit into their core business model and/or capabilities.

This is actually great news for creditors. They are able to locate collection agency partners who have real expertise in their business, and can actually act as a consultant and share best practices that truly work well within their specific industry.

If you really want to receive an experts opinion on trends within the marketplace make sure you do your due diligence and locate a collection partner with experience that fits your business.  There is no room within our industry for agencies who are not willing to adjust to the times.

Health Club Membership Collections

www.firstcreditonline.com
First Credit Services has a long history as the leading and most innovative health club membership debt collection agency in the United States.  With decades of experience working closely with health and fitness club owners coupled with an experienced management team with decades of debt collection agency experience.  FCS offers the right mix to handle collections on health club membership debts with expertise and professionalism. Great Member Service is the main component of our success.  FCS manages both first and third party collections for many of the most prominent fitness brands across North America.

First Credit Services has built a department 100% DEDICATED to our Health Club Clients that require a customer service driven approach to debt collections. We offer health club collections in a way that impacts your fitness business positively.  Most Health & Fitness Club Collection Processes require a more detailed approach to ensure fewer members fall too far behind.

Your Collection agency should help save memberships, so make sure you understand your agency's core philosophy... Ask your Collection Agency Partner these simple questions:

Q. Does saving a member mean as much to you as simply collecting money? 
A. Yes, because we understand a saved member has much more value than a quick buck. We help facilitate Member Reinstatements.

Q. Do you work as an arbitrator to try and resolve issues, or are you too forceful in your collection tactics?
A. Look, customer service should always come first, and everyone loses when your agency treats your members with disrespect.

Q. What security Measures do you have in place to protect membership data?
A. FCS has the Controls in place to protect data and remain 100% Compliant. FCS is SOC 2 Type II Certified and PCI-DSS Level 1 Compliant.

Q. Do you employ enough resources to reach my members on the phone on a consistent basis?
A. Yes, FCS operates 3 Call Center Locations and employs over 300 Call Center Agents dedicated to gym membership collections.

Review your Agencies Ratings with the BBB, and CFPB.  Research Online Reputation Management to see what consumers say about the agents. Make sure your agency responds to customer inquiries and/or complaints in a prompt and efficient manner. If your agency does not respond it looks really bad, and leaves you to deal with unhappy customers.

There is a vast difference between the high and low quality debt collection agencies representing the Health & Fitness Industry.  Health Club Membership Collections does become much more successful when your agency partner has the resources in place. 

Also, if you handle the collection process internally, it could be a big mistake.  Remember, your staff needs to remain happy and friendly, and collecting past-due memberships is a very hard job.  Allow a reputable agency to assist. All health club membership collection needs to be handled in a back office away from the rest of your membership population.

Honestly, there is so much more to go over, and keep in mind that a quality agency should be able to discuss these and other issues with you, and offer back-up documentation to prove they are worthy to handle your business. In short, ask a lot of questions, and try to unmask your debt collection agency.  An Agency may not have the ability to supply you with sufficient information, which would be a red flag.

wjackson@fcsbpo.com

First Credit Services will be Exhibiting at IHRSA 2016

www.firstcreditonline.com
IHRSA is the best event in the Health & Fitness Industry each year. Attendees come from all over the world to find out what the next big thing will be in fitness. It's a great time to reconnect with friends and colleagues from some of the most prominent fitness brands.  As with most industries, Technology has been at the forefront the past few years, and 2016 is sure to follow that trend once again with some exciting new product developments and product enhancements.

Last year, a lot of the excitement was geared toward the smooth integration of advanced technology into indoor cycling, and I expect to see more of the same in Orlando this year. 

The Trade Show floor is always filled with new and exciting products that inspire every fitness professional to continue innovating and pushing the envelope further.

In my sliver of the fitness pie, (Billing, Collections, Member Retention) where we are responsible for communicating with the members outside of the club, we have spent the last year developing new technology which allows us to stay ahead of the compliance curve in the United States. Federal Regulations continue to stifle the way we communicate with consumers, and we continue to come up with innovative ways to feed the revenue cycle and keep a gyms bottom-line extremely healthy.

Will we see you there?

Here is a link of all exhibitors expected: http://hub.ihrsa.org/ihrsa-2016-exhibitor-list