Hunting down customer payments isn’t the most practical approach to debt collection. Collection pursuit takes a lot of time and resources. Moreover, these efforts may negatively impact a company’s relationship with its clients. No one relishes being called out and pushed to complete a payment, especially so when doing the proper thing was always in their plans. Luckily, current technologies have given businesses across the globe more efficient ways to pursue past-due payments. Automating the reminder process was at the front of this line.
The Basics: Payment reminder notifications are a type of communication sent to customers to remind them of upcoming or overdue payments. These notifications can be sent via various channels, including email, text message, and mobile app push notifications. In the B2B space, payment notifications are most often sent VIA business email.
Automating payment notifications can be effective in increasing payment rates, reducing right-off losses, and improving customer satisfaction. Additionally, automating the dunning process can save time and manual human effort and help improve the efficiency and effectiveness of the accounts receivable process.
Automated payment reminders offer several benefits for users, including:
Improved payment rates: Automated payment reminders can help users improve their payment rates by reminding customers of upcoming or overdue payments, which can help prevent past-due payments.
Reduced workload: Automated payment reminders can help prevent past-due payments making the repayment process smoother and reducing AR staffs’ workload to focus on more productive activities.
Improved cash flow: Automated payment reminders can help users improve their cash flow by allowing them to send invoices quickly and schedule billing reminders, which can help shorten the invoice-to-cash cycle.
Improved customer satisfaction: Automated payment reminders can help improve customer satisfaction by providing timely and relevant information about their payment status and reducing the risk of late fees or penalties.
Overall, automating invoice reminders can be an effective way to streamline the collections process and improve payment rates, DSO (Days Sales Outstanding) and give a good boost to cash flow.
Businesses can seriously improve their collections processing and maintain positive relationships with their customers. Contact an eTreem expert to learn how our Intelligent Payments Platform solution can optimize your company’s receivables payments and collections processing. Reach out …