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.
Wouldn’t it be nice to be marking all invoices as “Paid,” within the payment due date period?
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.
What if the AR collections department/clerk had the relevant information instantly available, up to date in real-time, and at the click of a mouse to provide higher levels of service, and positively influence customers’ 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.
How can all this be achieved?  Helping your clients to understand how CRM software can significantly help with their accounting procedures, will help them improve AR collections.  CRM software is a powerful tool for tracking customers, their employees, all associated relationships, and any communications with these people.  When integrated with an accounting system, authorized personnel can use the CRM system to access sales, invoicing and payment histories.Implementation of ”best-in-class” CRM software can do the trick.  Whether AR collections are done by someone in the accounting/finance department, by customer service reps, or even sales representatives, a well implemented CRM system can help a company maintain stronger control, and gain a better understanding of their AR collections results.
All this clarity allows personnel to have instantly relevant conversations with customers based on information and analysis (through reporting) that will facilitate a change in customer payment behaviour to their advantage.
Speeding up collections can have a significant impact on the bottom line.  Help your customers understand this, and…
They’ll thank you for it!