Automation of credit and collections is more important than ever in the new normal. AR teams are challenged by staffing issues and increases in delinquencies. The need for cash flow and working capital to sustain your company through the economic recovery is critical.
With manual credit and collections it is very difficult to makes the number of customer contacts needed to meet cash flow and working capital needs.
- It takes 25-40 minutes to prepare for a customer call, make the call, and record notes on the conversation for follow up.
- The average AR staff can make 40-60 calls per day.
- That means that less than 10% of your customers can be contacted after invoice presentment, because your team is focused on the 60 day past due and above.
You need automated credit and collections processes which provide you with:
With automated processes you will be able to touch your customers more often through multiple channels of communication. The more you are able to make contact with customers the higher your cash flow will be.
The most successful automated processes find the right balance of automated and manual collections activities. There are points in the process where appropriately timed personal contact should be used to supplement automated activities.
Rules at Different Stages of Collections Process
- Start off with automated communication
- Move into more personal communication as customers become more delinquent
Sometimes it takes a personal call to collect a past due account. But save those calls for when they are needed. Start with automated communications, and change to personal contact if a collection problem develops.
Customer Relationship Check-ins
Maintaining good customer relationships is important and can be helpful. You’ll get paid sooner if you have good relationships.
Check-in periodically with a customer on an anniversary date, birthday or some other occasion. Your AR team will have more time to do relationship building, if you have automated credit and collections processes.
Automated credit and collections activities supplemented with a balance of personal contact will increase cash flow, working capital, net income and shareholder value. Automating credit and collections activities can save time so your team can reach out to customers when needed to collect accounts and build customer relationships. Automation is key to an efficient and effective credit and collections process.
Lockstep Collect, a leader in cloud-based credit and collection platforms, can help you collect cash in 4 ways:
- Cloud-based solutions
- Automated customer communications
- Customer self-service
- Collections Activity Management
Lockstep Collect is an experienced software partner that can help you maximize your collections and cash flow in the new normal.
If you would like to learn more about how you can benefit from automated credit and collection solutions, please contact Lockstep Collect at www.anytimecollect.com.