Debtor management is an important part of your business. It ensures that your invoices are paid on time, that your cash flow is maintained and that your profitability is not compromised.
But debtor management is more than just sending invoices and reminders. It is also a form of customer contact and customer relationship management. In fact, how you approach your customers affects how they perceive your business and how they respond to your requests for payment.
That is why it is important to personalize the customer approach in debtor management. This means considering the characteristics, wants and needs of each customer and tailoring your communications accordingly.
Step-by-step plan: personalizing customer approach in debtor management
Here are some tips:
- Know your customer: Collect as much information as possible about your customer, such as their business details, financial data, payment behavior, credit risks and preferences. You can obtain this information from a variety of sources, such as your own records, credit reporting agencies, online platforms or direct contact with the customer.
- Segment your customers: Divide your customers into different groups based on relevant criteria, such as turnover size, payment term, payment history, credit limit or risk profile. This allows you to determine an appropriate debtor management strategy for each group.
- Choose the right communication medium: Match the communication medium to the customer’s situation and preference. For example, some customers prefer e-mail, while others prefer to be called. You can also use modern means of payment and communication, such as text messages or payment links.
- Choose the right communication tone: Match the communication tone to the purpose and relationship with the customer. For example, some customers need a friendly and informal approach, while others expect a businesslike and formal approach. You can also determine the most effective tone based on the customer’s historical payment behavior.
- Choose the right communication timing: Tune the communication timing to the urgency and occasion. For example, some customers need a quick reminder after the payment deadline has passed, while others need a longer lead time. You can also use data analysis to determine the optimal time to increase the likelihood of payment. Consider an independent construction professional who is too busy during the day to do his administration. In such cases, it is best to automatically send an SMS message in the evening hours.
In short, by personalizing the customer approach in debtor management, you can not only get paid faster and easier, but also increase customer satisfaction and loyalty.
Software in personalizing customer approach in debtor management
Then contact us for a no-obligation demo. We will be happy to show you how our software can support you in sending, tracking and collecting invoices in a personalized way.
