Debtors are Your Customers
The debt collection department is notoriously
unfriendly, and usually not customer-centric. Of course delinquent
accounts need to be managed effectively, but imagine the destruction
of customer value when a legitimately late payment incurs a
response from the company that is so harsh, it leads to a lost
customer. The challenge is to manage your debtors as customers,
but at the same time identify those accounts that may become
delinquent and then to categorise the level of response based
on the amount to be collected.
application is premised on communication. An effective
approach to debtor management is to engage your customers
early. Provide value for the customer through reminders,
opportunities to report timely queries and hassle free
methods of payment. These communications can be established
to automatically recur each period, and are effective
in that they act as an early warning system. The benefit
of engaging the customer in dialogue is that the communications
remain customer-centric, without the involvement of notoriously
unfriendly debtors departments.
Your Debtors for Profit
a system so flexible that it allows you to build your
own debtor management system. Well you can. The system
will accommodate as many variables as you want, to effectively
segment your accounts for different types of action. Poor
debtor management is a rapid method of eroding margins.
The crucial issue is to identify potentially delinquent
accounts early enough to take action. The dialoguemarketing
application engages the customer throughout, from before
an amount becomes due to past due.
due are easily segmented into categories for action, from ignore
through to legal proceedings. Failure by a customer to meet
a due date is immediately detected by the application and reported
to the relevant personnel, with accelerated dialogues being
sent to the customer. Continued failure to make a payment by
the customer automatically triggers action requests by the application.
Of course payment is automatically met by the appropriate customer-centric
responses. Such a system allows you to effectively manage the
money due to you, and to take appropriate action on accounts
that may become delinquent, without unnecessarily damaging a
relationship that may remain of value.