DCM Group

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A Tale of Two Debt Counselling Companies

Why managing your consumer experience matters to your bottom line

Here is a tale of two well-established debt counselling companies:

Co A and Co B are both experiencing growth in new applications and sign-up an average of 30 new consumers per month. However, there is a seemingly small difference between these two similar companies. Company A is able to convert 81% of its new applications into paying consumers, whereas company B converts only 72% of its new applications.

Although this may seem like a marginal difference between the two companies, by the end of the year Co A will have gained an additional 32 paying consumers without any further increase in its operational costs. More importantly, Co A has increased its bottom line by over R160 000 per annum. The key difference between Co A and Co B is simply that Co A is better able to convert debt counselling applications into paying consumers.

Finding new clients is 10 times more expensive

The Gartner Group, a world leader in business research, has established that finding new clients in a typical business is 10 times more expensive than converting and retaining ones that have already walked through the door. You probably spend a considerable amount of money every month on advertising, website maintenance, and salaries in order to attract new consumers. How much effort and investment are you placing on ensuring that once consumers contact you they are left feeling reassured, well informed and knowing what to expect?

Consumers who have a positive first experience with your business are more likely to convert into paying consumers. First impressions are vital to build trust and credibility. But equally important are second and third impressions. The ongoing conversation and engagement that you have with consumers will determine whether that consumer stays for the long journey or opts out at the first sign of distress.

Ultimately, to increase your revenue significantly, you need to change your consumers’ habits and behaviour. These consumers have a history of poor debt management habits. Your role is to reverse these habits, get these very same consumers to start living within a budget, manage temptation and to pay their debt obligations every month. Changing habits and behaviour is not an easy task and a tall order for many of us. Anyone who has made and broken a New Year’s resolution will understand that this is challenging. Because human behaviour is so complex to understand and manage, DCM has developed a programme to assist Debt Counsellors and consumers during this process.

DCM Business Partnership Programme

The DCM Business Partnership Programme comprises a series of interventions and materials that assist Debt Counsellors from the very first encounter with their consumers up until the first payment is received and beyond, with the goal to fully rehabilitate consumers. It is designed with in-depth knowledge of how over-indebted consumers think and behave. This knowledge together with key scientific behaviour principles is woven into the programme’s interventions to help consumers pay regularly. The programme has a proven track record of success, increasing the number of first payments amongst new debt counselling applicants by 20%. With no changes to your operational costs it means that this increase in first payments not only increases your revenue but also goes straight to the bottom line of your business.

Participating debt counsellors have seen their revenues increase by approximately 32%.

But, increasing the number of new paying consumers and your revenue isn’t the only benefit of the programme. The programme helps to re-assure and build trust amongst consumers. Consumers who’ve had a positive experience are more likely to refer friends and family, and that is exactly what consumers do. Research conducted by Lithium, an American social media company found that 92% of consumers trust recommendations from friends and family more than any other form of advertising. Thus, not only does the DCM Business Partnership Programme increase your revenue it also brings more business through your door.

If you need help managing your consumer experience contact the DCM Group at businesspartner@dcmgroup.co.za and sign-up for the DCM Business Partnership Programme.


The Central Nervous System and

Payment Distribution Agencies have a lot in common

Could you live without yours?


“The Central Nervous System is the processing centre for the human body. This system is responsible for sending, receiving and interpreting information from all parts of the body” (biology.com) Payment Distribution Agencies (PDAs) like the central nervous system, receive, interpret, integrate and process information, ultimately ensuring the correct collection and distribution of funds.

Human beings cannot function without their central nervous system. Likewise, the Debt Review Industry would certainly struggle to function without Payment Distribution Agencies. According to the Payment Distribution Agent Association of South Africa (PDASA), PDAs have since their inception paid in excess of R14 billion to creditors, approximately R400 million per month.

The core function of PDAs is the collection and distribution of debt counselling consumer funds. However, in reality PDAs play a pivotal role in verifying, integrating, analysing and processing vast amounts of debt counselling information. Financial switching is only a small component of the total job that PDAs do. To ensure that consumer payments are distributed according to the rules and regulations set-out by the National Credit Act and the National Credit Regulator, PDAs have developed and integrated with sophisticated debt counselling software and payment engines. PDAs also play a pivotal role in managing exceptions that often arise due to payments with poor referencing, over and under-payments, and account validation issues. Many PDAs additionally invest in debt counsellor training as well as initiatives that help educate consumers and assist in modifying their behaviour.

PDAs play an independent, intermediary role between consumers, creditors and debt counsellors, and frequently liaise with all parties to ensure that consumer assets and interests are protected. The NCR regularly audits and renews the licenses of PDAs in the industry, ensuring compliance with strict guidelines, whilst adhering to Reserve Bank regulations. PDAs are expected to keep comprehensive audit trails of all transactions and provide detailed monthly statements and reports to consumers, the NCR, creditors and debt counsellors. Furthermore, PDAs conveniently store and track the history of debt repayment plans, and handle.

The National Payment Distribution Agency (NPDA) is a subsidiary of the DCM Group, accredited by the National Credit Regulator (NCR), to collect and distribute the funds of over-indebted consumers to creditors. The DCM Group takes a holistic industry approach with the purpose of building sustainable financial well being that enhances the lives of all.


DCM Group

DCM Web_GroupThe DCM Group is a pioneer in the debt restructuring industry since 2001 and is affiliated with a premier network of leading, independent debt counsellors to assist over-indebted consumers.




The National Payment Distribution Agency (NPDA) is a subsidiary of the DCM Group, accredited by the National Credit Regulator (NCR), to collect and distribute the funds of over-indebted consumers to creditors. The DCM Group takes a holistic industry approach with the purpose of building sustainable financial well being that enhances the lives of all.




10 comments on “DCM Group

    • Is there a reason why you would want your PDA to stop the deduction? Don’t you need to make your debt review payment any more? Please rather talk to your Debt COunsellor about this and then maybe have them cc you on an instruction to your PDA. That way you have a legal written trail of your instruction in case you face problems later.

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