Published on : 28 September 20224 min reading time
In principle, the main objective of business enterprises is to maximise profits and turnover each year. Collecting cash on time and on the due date is therefore one of the major challenges for any business wanting to be financially stable. However, non-payment of invoices by customers often jeopardises the achievement of this goal. Even if customers are not necessarily acting in bad faith, paying their bills is often not a priority for them. In fact, customers may simply forget when their invoices are due for payment. For the good management of the company, it is then necessary to contact these customers again so that they pay you as soon as possible. However, this reminder requires tactics and methods so that it doesn’t negatively affect the relationship with the customers. Here are some of the secrets to an effective customer reminder.
Use the same dunning procedure for all customers
Customer reminders can be done in different ways. It can be carried out by e-mail, by telephone or by letter. But the question here is how to do it without breaking the bond between you and your customer, so that they remain loyal to your company. The first method of reminding customers is to set up the same reminder procedure for all your customers. Of course, each customer profile is different from the others. To carry out a customer reminder, you must then personalise your reminder according to your customer’s profile. In this case, you must choose the frequency, the communication channels to use and the tone you will use. Obviously, you will lose a lot of time and several employees will be mobilised on the project if you treat the reminders on a case-by-case basis. In this case, it is advised to classify the different customers into groups and to assign each group a specific procedure.
Include a warning step in the customer dunning procedure
In order to do a good customer dunning without offending your customers, you need to include what we call a warning step that comes before the deadline for your customers’ invoices. This step is important because most companies that wait for invoices to become due before starting the procedure are usually unpaid in due time. This step reminds customers that their invoices are due and that they should think about paying. By doing this, you are doing your customer a huge favour, you will know whether your customer would be able to pay you on time or not and as a result you will take the appropriate steps to deal with the situation. You will also have a good chance that your customer will pay you promptly.
Therefore, if your customers pay you, you are advised not to close the files immediately, but instead you should thank them. This acknowledgement will be useful to preserve your company’s image, to respect your customers and to encourage them to pay their bills next time instead.
Use powerful software to automate your tasks
We are currently living in the age of technology. It is therefore necessary to take advantage of this evolving technology to do customer reminders. We recommend that you find a powerful software to manage the collection of all your invoices. The advantages of this software are numerous. They automatically classify all customers and apply personalised dunning procedures to them. They allow you to save a lot of time, because they apply dunning procedures to all your debtors in just a few clicks. And finally, they optimise your dunning procedures by sharing the necessary information on their interface.