It has happened to all of us: forgetting to settle an invoice in time. It’s human. Actually, according to Rollector.ai’s data on payment reminder volumes, approximately 30% of overdue payments occurred because people just did not remember to pay. For a company cherishing it’s customers and focusing on low churn rate, it is essential to pay attention to this.
Surprisingly enough, payment collection can be used for building customer loyalty. When every customer is charged for the products and services they consume, it is evident that billing is the most obvious, inevitable touchpoint during the customer journey.
This means that the messaging related to invoices and communications regarding overdue payments are also the moments that present the highest potential for churn – and excellent opportunities to prevent customer from churning.
If you are responsible for credit management and debt collection, you should apply best practices of good customer service to the debt recovery process.
Regarding Payment Reminders as part of Great Service
For most businesses, invoices represent the forgotten churn prevention potential. Seen from the customer perspective, the after-the-due-date communications play a massive role in the customer journey.
Is your company’s customer communications scarce? Do your customers mostly hear from your firm when they receive the monthly invoice?
If yes, you have a very strong reason to revise the way you communicate and an even bigger reason to make your best not to lose existing customers during your A/R activities.
1/3 pays late without having Financial Problems
According our surveys, one third of your customers did not pay because of mere human error. Rather than threatening clients to settle their debt and prompting them in an impolite manner, there are at least two considerations to be taken into account:
- It is 5-10 times more expensive to acquire a new customer than keeping your current clients satisfied (investments in customer retention).
- Overdue payments do not always occur due to the inability to pay. Indeed, according to Rollector.ai’s data, over 30 % of all late payments are due to mere human error. Therefore, many consider it as a good service if the company kindly reminds them. Some companies even choose to inform customers before the due date.
Customers appreciate multichannel reminders
Rollector.ai surveyed opinions of hundreds of customers who received a friendly and timely multichannel payment reminder sequence.
It can be stated with confidence that carefully designed cadences of automated reminder calls & SMS messages truly improve customer satisfaction and prevent churn. Customers perceive the calls and messages as good service when used for payment reminding.
Our survey results reveal it: The reaction of the respondents was very positive when asked how they felt about receiving the automated reminders via mobile native channels – The customer satisfaction score was 4.2 (out of 5) for our client in this case.
Would you also like to see this high customer satisfaction on your payment reminder messaging?