Modernizing AR: Customer Engagement Matters
This guest post was contributed by Ernie Humphrey, CTP, Treasury Webinars & Rachele Collins, Ph.D. APQC.
An often-ignored benefit of modernizing accounts receivables (AR) processes via automation is the opportunity to engage customers in a way that directly benefits the bottom line. Happy customers pay more quickly, they pay it all, and they are receptive to suggestions on how they pay you. AR excellence is driven by the relationships that your AR team has with your customers, and those relationships are inherently more positive with automation support.
Typical pain points related to key areas of AR processing include the following:
Interactions with customers relative to mitigating any of these pain points matter. The good news is that technology can directly help address these challenges. For example, customer relationship management systems can reveal what customer interactions occur across departments, central customer portals can allow organizations to coordinate dispute responses, and automated data capture of all customer interactions can provide visibility for managing communications standards. Finance leaders would do well to meet with every employee that interacts with customers to better understand process pain points and determine what process improvements and automation investments can help.
The electronic exchange of invoices, remittance information and portals where customers can view open invoices, payment activity, manage payments, and communicate effectively with suppliers mitigate disputes, the time spent on disputes and cash application, and facilitate relationships that allow companies to take more control of how and when payments are made by customers.
The following metrics can be leveraged to monitor and manage customer relationship success relative to accounts receivable to help determine where to focus resources to impact accounts receivable success:
At the heart of accounts receivable success is effective and efficient communication with customers. AR automation mitigates barriers to effective collaboration with customers, and as such, positively impacts customer relationships. It is time for companies to recognize and manage the impact that the accounts receivable function has on customer relationships.
If you want to learn more about how accounts receivable automation impacts the bottom line I invite you to experience the webinar recording for the recent webinar AR Modernizing to Impact the Bottom Line: Automation, Analytics, Customer Engagement.
Experienced Marketing Associate with a demonstrated history of working in the computer software industry with a focus on creative and outside of the box thinking. Skilled in Project Management, Communication, Digital Marketing, Adobe Creative Cloud, Leadership and Planning. Currently studying through the University of Guelph and Cornell University.
Oct 22nd, 2018
Set Your Business Apart with an Automated Collections Process
May 27th, 2020
Buyers’ expectations around what makes a good customer experience has undergone significant transformation in recent years. In today’s world, we expect things to be easy to use, and to receive things how and when we want them. Naturally, these expectations have migrated to the business world and are now impacting the collections process. Your customers […]
5 Ways Your Finance Team Can Stay on Top of its Receivables Today
May 13th, 2020
The End of Economic Prosperity As reported by the International Monetary Fund, the United States is now in the worst economic downturn since the Great Depression. Unemployment, retail sales, economic output and industrial production are all at record numbers. In this time, it is critical for organizations to recognize the severity of the current situation, […]
The Risks of Not Accepting Electronic Payments
Apr 29th, 2020
The present economic environment is leading organizations around the world to make stark realizations about their current business processes. Of particular concern, business leaders are learning how unsustainable traditional payment methods like checks and lockboxes can be, and they are looking for new ways to enhance or replace their existing systems to bring continuity to […]