How to Use CRM as a Collection Tool in an Economic Downturn
 |
Most salespeople recognize the value in keeping in touch with and reaching out to clients, leads and prospects with a well-utilized CRM tool. In tough economic times, CRM can be especially useful to the collection process, too.
Accounts Receivable can be hard to manage in the best of times. When a particular industry that your company targets falters, it can mean that a whole segment of your business becomes less active at once. Not only can you find that you are generating less income, but collecting what you are due becomes more important to your bottom line on a day-to-day basis.
Using your CRM system to help manage receivables can be a very effective way to target your potentially tardy clients. By remaining active in your collection process and keeping a steady dialog, your company is positioned to get the first dollars released by your client’s Accounts Payable department. Here are a few ways to use your CRM to help turn around a late paying client:
- Know your clients’ Accounts Payable contacts – Make sure you know who to talk to when a payment concern comes up. The contact that your salesperson sold the job to may not be the person who pays the bills. Keep that information up-to-date and accurate in your CRM database. Make sure your contact information is on your invoices. This may sound pretty elementary, but if your client doesn’t know who to call for payment, payments can be delayed. Verify that your invoices clearly reflect who to call if payment will be late.
- Remain true to your terms – Enter a task for each client’s due date. If a client becomes past due, make them aware of it. Send a statement or a past due notice the day the account becomes past due. Often, Accounts Payable departments are shuffling multiple payees. A mailed or e-mailed reminder helps to get your company to the top of the payment list.
- Follow-up with regularity – If, within a reasonable time, you do not get a response from your mailed or e-mailed contact, call that person. If you get the person’s voice mail, and they don’t call you back within a day, follow up with another call. When you connect, get clear arrangements as to how much will be paid and when. Be friendly and courteous. Your mother was right — you do catch more flies with honey than with vinegar. Alienating an Accounts Payable professional is the last thing you want to do when times are tough. If you have to withhold product or services because of late payment, an explanation of your terms and what measures you have taken up to that point is totally understandable and reasonable.
- Notation, notation, notation – When you are in the collection process with a client, it is important that your sales team and service professionals are aware that the client is behind in payment. By notating the account as to where you are in the collection process and making arrangements for payment before additional work is delivered, you are helping to ensure that you will receive payment for your time and materials.
Your CRM system is intended to improve customer relationships through improved efficiencies and effectiveness by utilizing its power as business process automation and follow up tool. The same strengths that help your sales team reach more clients and prospects can help your Accounts Receivable department or person keep the money flowing through your organization through difficult times.
Related Posts
with RSS Reader