When you make it easy for your customers to pay, you reap the rewards by getting money in the door faster and freeing up working capital. Here are our top 5 tips to help you collect from your customers faster.
Enabling your customers to pay invoices at times convenient to them increases the likelihood that they will pay on time or early. When you follow these five best practices, you improve your chances of collecting payment on time even further.
1. Targeted follow-ups
Send targeted follow up messages to specific groups of customers. For example, send more frequent follow-ups or more assertive messages to customers who have a history of late payments.
2. Enable credit card payments
Giving customers the ability to pay with credit card can give you a competitive advantage by making it easier for customers to do business with you. Enabling credit card also allows customers to reap the benefits of whatever loyalty reward program they are a part of.
3. Stay on top of credit card expiration dates
Automatically remind customers who pay with credit card to update their card when the expiry date is coming due.
4. Include online payment information on your invoice template
Sometimes the person receiving the invoice isn’t the one making the payment. By including all payment options directly on the invoice, when it’s forwarded to another team member, they will be made aware that there’s an easier way to pay.
5. Update your payment terms to include online payments
As you look to renew and sign on new customers in 2019, consider including a clause on your contracts that explicitly states payments are to be made electronically. Now is a good time to collaborate with your legal team to update any legal clauses for new contracts.
All of these approaches can be achieved easily using an AR automation solution like ARC. Our customers, on average, reduce their days sales outstanding (DSO) by 5-25 days. Our client success team guides you through the whole process - from implementation and beyond - to ensure you are continuously enabled and optimized to offer your customers the best payment experience. Contact us to find out more.