Improving AR collections using CRM (Customer Relationship Management) Software
Collecting your money! Next to providing excellent customer service, collecting AR is probably one of the most important business activities that your clients engage in. Read on to discover a great way of improving AR collections by using Improving AR collections using CRM (Customer Relationship Management) Software.
Are these part of your clients’ daily AR collection routine?
- Managing Ageing AR with Outlook.
- Stamping invoices with Past Due, or Payment Demands.
- Customer history in paper files…”oh, let me get back to you.”
- Managing communications on sticky notes.
Customers’ payment habits can’t be controlled. What can be controlled is the information that is collected, reported, analyzed and used to manage AR collections; and then used to ‘influence’ a customer’s payment habits.
- Your clients can go beyond just discounting for early payment…create and utilize reports on customer’s history in terms of payment timing vs. purchasing timing vs. their business cycle (seasonal, industry, etc.). Analyze the results to gain insights that can help develop more creative and accommodating payment solutions for their customers (i.e. increase frequency/lower each payment) that encourages them to pay in a timely, and hopefully earlier, manner.
- Create a report that analyzes the cost of late collections and loss of interest earned vs. the value of early payment discounting to run what-if cost/benefit scenarios.