Collecting from customers who owe money isn’t always easy. This is often hampered by the inherent embarrassment of the situation, as well as the fear that the measure could affect the relationship with the customer. However, know that tools like the collection rule can help in the process.

Adopting this strategy is important because late payments impact cash flow , compromising the company’s financial health. Using tools that can transform this delicate task into an efficient process mitigates financial risks.

Want to learn about the tool that helps reduce your customers’ defaults? Keep reading to learn more about the collections ruler—a powerful tool for account management!

What is the collection rule?

A collections system is a strategy that organizes and automates the process of collecting payments from your customers. It follows a schedule that determines how and when your customers will be contacted to remind them to pay.

Using the collections tool, you need to consider factors such as when the bill is due, how soon to notify the customer about the due date, and any delays. This tool is used to maintain contact with the customer, reminding them of upcoming debt due dates or the occurrence of a debt.

Consider, for example, credit card use . Banks often send emails informing you of your bill as soon as it closes. New notifications are sent in the days leading up to the due date.

If you don’t pay the amount due within the established deadline, a new alert is issued. These actions demonstrate how the collections rule works in practice. Various types of messages are sent at pre-defined times.

Furthermore, communications are personalized to the intended customer, respecting the company’s tone and language. Each company must decide which communication channels are most effective for its audience. Options include phone calls, email, SMS, or even WhatsApp.

How to organize the collection rule?

To organize the collections process within your company, you need to identify the steps involved in the collections process. It’s worth starting by planning customer contact points.

They correspond to the ideal moments to communicate with the consumer, such as:

  • period that anticipates the invoice due date;
  • expected date of payment;
  • after a few days of the due date, without due payment.

Once the communication timing is defined, the channels through which these messages will be sent are determined. These channels should be chosen based on the profile of the customers and the business itself.

Companies often prefer email to provide detailed information such as pricing and deadlines. SMS or WhatsApp messages are often effective for sending short reminders.

In turn, calls can be useful in more urgent cases, such as prolonged default , mainly by facilitating negotiations.

Finally, financial management tools are adopted to implement the collections process. They can automate the sending of messages, reducing manual effort and ensuring that each customer receives notifications at the right time.

How does the collection rule help reduce default?

The customer billing tool is used to organize communication between the company and the customer regarding accounts due or overdue. As you can see, you can integrate the actions you define in its creation with tools that automate billing.

Discover how it can reduce your customers’ insolvency and improve your company’s financial management!

Organization and planning of contacts

The collections tool provides detailed planning of customer contact points. This prevents both the creditor and the debtor from forgetting payment deadlines.

Sending reminders at strategic times, such as before and after due dates, constantly updates customers on their financial situation. This reduces the chances of late payments.

Personalized communication

By using a collections tool, your company can send personalized messages, tailored to each customer’s profile. This personalized approach creates a sense of connection, making the collections experience less invasive and more positive in the eyes of the consumer.

Reduction of constraints

Using a collections system professionalizes the financial relationship between company and client. Automating and standardizing communication makes the approach less emotional, for example. As a result, there’s less chance of embarrassment, which is common among those in debt.

Continuous monitoring

Because it’s based on automation, the collections tool facilitates the monitoring of accounts receivable. This allows the company to monitor its customers’ financial behavior.

This allows management to identify potential patterns of late payments, for example. Based on the information collected, collection strategies can be adjusted to be more effective and reduce default rates.

Easy receipt

Finally, automatically sent messages often contain instructions on how the customer can pay off their debt. Examples include payment links, Pix keys, or barcodes, making it easier to receive the funds.

How to use the collection ruler in your business?

To put the collection rule into practice, start by analyzing critical dates. Then, organize a collection calendar that defines the dates and content of the messages.

Some possibilities are:

  • sending an email reminder 3 days before the due date;
  • new notification, by email, on the due date;
  • call with playback of recorded message, after 3 days delay;
  • contact via WhatsApp after 7 days of delay.

Choose an automation tool, which should be fed with information such as customer names and due dates. Then, define messages and personalize them according to different buyer profiles.

To ensure your strategy’s success, avoid common mistakes like sending too many messages. Also, remember to monitor results to adjust communication and scheduling as needed.

Leave a Reply

Your email address will not be published. Required fields are marked *

Explore More

GPTW Seal: How to become a Great Place to Work company?

With a growing understanding of the importance of a healthy and productive work environment, companies are investing in strategies to improve their employees’ experience. The GPTW seal recognizes these initiatives,

Resume Analysis: 7 Tips to Avoid Hiring Mistakes

Even with investments in automation, artificial intelligence, and technology, a company’s human capital is still one of its most significant resources. Thus, it is essential to thoroughly examine resumes to

Likert scale: how to use it in the corporate environment?

The Likert Scale is a measurement methodology that combines psychology and statistics. In practice, it involves conducting questionnaires in which there are five response options for a statement or question.