I just got off the phone with a customer that reminded me how much progress they have made in the last 6 months.
When they started looking at their AR collection process, they found over 2,000 new invoices every month. They had one simple email collection template “Just pay” that they would send every 2 weeks. If the customers did not pay, they would write off the bills or suspend the account and stop trying to collect. Once we started working together, we explained how you could use various workflows to handle customers differently.
An automated accounts receivable management software can generate invoices, send invoice reminder to customers,
For instance: For new customers with low balances, one simple email and then a rapid account suspension to help avoid larger unpaid account balances.
For the more strategic customers: use a more personal approach by reminding the customer of the value they were receiving. A notification a few days before the invoice is due and progressive escalation of the payment reminder can help with the long term relationship. We can even insert a call after the second email to make sure they notice the deadline.
Now in between the small balance customers and the strategic customers, you have the thousands of mid size customers. That’s where the customer portal is invaluable, one click at the bottom of the email gives your customers access to a portal with all past invoices, statements and documents shared. This help reduce DSO and maintain proper cash flow. But also the ability to enter a promise to pay; open a dispute and communicate back and forth with the collection specialist.