Marketing & Business Development Flashcards

In a SWOT analysis of a collection agency, which item counts as an internal weakness?

Answer: High collector turnover and outdated dialer technology

Weaknesses are internal factors the agency controls, such as staffing and technology.

An agency's brochure says it achieves the 'highest recovery rates in the nation' but has no data behind the claim. What is the main risk?

Answer: The claim could be treated as deceptive advertising under the FTC Act

Performance claims in business advertising must be substantiated, or they risk being found deceptive.

Which business development channel usually gives an agency the most credible access to creditor decision-makers?

Answer: Active participation in industry and trade associations

Trade association involvement builds credibility and puts agency leaders in direct contact with creditor executives.

What does a clear value proposition in an agency's marketing communicate?

Answer: The specific benefit a client gets from choosing this agency over others

A value proposition states the distinct benefit a client receives from the agency.

Which practice most directly improves client retention for a collection agency?

Answer: Holding regular performance reviews with clients, such as quarterly business reviews

Proactive performance reviews build trust and let the agency fix concerns before the client leaves.

An agency surveys clients with the question 'How likely are you to recommend us?' on a 0–10 scale. Which metric is it measuring?

Answer: Net Promoter Score

Net Promoter Score uses the 0–10 'likelihood to recommend' question to gauge client loyalty.

A company sells creditors cheap letter series that falsely suggest a third-party collector is involved when it is not. Which FDCPA practice is this?

Answer: Flat-rating

FDCPA §812 (15 U.S.C. §1692j) bans furnishing deceptive forms that create a false belief that a third party is participating in collection, a practice known as flat-rating.