Friday, September 26, 2008


"Using The Telephone To Hold In Sales" After Welcome Call To 90 Days Past Due

Presented By: Frederick H. Conte , Chief Operating Officer, Preferred Equities Corporation

Corporate Philosophy: Customer Service, Reservations and Collections work together to handle customer problems quickly and fairly to avoid cancellations. This philosophy is an important reason why
the Company's over-60-day delinquency rate is less than two percent.

1. Customer Service
• Reasons for cancelling
1) Non-use

2) Confusion about use

3) Financial trouble

• Solutions
1) Non-use: Department works with Reservations to get customer on vacation.
2) Confusion about use: Program is explained to customer. Offer
may be made for complimentary 3-day/2-night accommodations in Las Vegas.

3) Financial trouble: Customer may be offered a refinancing of the contract with 3-6 months with no payments (interest accrues) or a rewrite of the contact with a less expensive resort, season and/or unit.

2. Reservations
• Reasons for cancelling
1) Confusion about reservations procedure

2) Lack of satisfaction with last vacation experience

• Solutions
1 )Confusion about reservations procedure: Reason for confusion is
ascertained (missed deadline for Space banking, etc.). A reasonable
judgement on reinstatement of lost vacation time which is possible through RCI Bulk Bank Account.
2) Lack of satisfaction with last vacation experience: A 3-day/2-night stay
(good for one year) may be offered. Department Manager may talk to RCI
about special exchange. Reservations Manager speaks to RCI several times
a day to solve problems, often conferencing with Customer Service Manager.

page two
"Using The Telephone To Hold In Sales"

3. Collections
• Call/Letter Flow
Call 1:
Letter 1:
Call 2:

Call 3:

Letter 2:
Letter 3:

• Problems/Solutions
Over 20 days, customer is called to find out about payment.
At 30 days past due, computer generated reminder letter is sent. Collector asks for payment. About 70% of customers send post dated check for payment when asked at this point. Ask for honesty. Collector may offer refinancing or longer length of contract in response to financial problem.
Default letter is automatically sent at 45 days past due. Cancellation letter is sent at 60 days with 20-day deadline.
1) "Don't like program". A complimentary 3-day/2-night stay in Las Vegas may be offered in this case.

2) "Can't get reservation ; Department Manager works with Reservations to get customer on vacation. Manager can offer a bonus week too.

3) "Have financial problems"; Refinancing may be offered with 3-6 month payment moratorium or longer length of contract so payment drops.

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