The Conference Coach™

In today’s economy, collections are a critical part of everyday business.  Several smaller size businesses sometimes fail to recognize the importance of the collections process, for fear of turning away future business. However, that is a mistake. The longer a bill is past due, the less likely it is to get paid.

Maintain Customer Relationships
One of the most vital things to remember in collections is to maintain positive relationships with customers. It is better to get a partial payment, or put the customer on a payment plan than it is to get angry and walk away with nothing.  It is also important to not just collect, but to understand WHY the customer cannot pay the bill – it can help gauge further business transactions, or how to adjust payment terms to meet their business needs.  At Copper Conferencing, good customer relationsihps are a priority.

Use Technology
Another critical step to improve collections is to implement technology that helps in this process.  Technology tools have a direct relation to reducing the time that the collector spends focusing on actually contacting the customers. Having a “one stop shop” for collectors to look up any and all information needed helps them spend less time figuring out who to contact and more time actually talking to the customers. For example, the billing system at Copper Conferencing, Phoenix, keeps track of all customers accounts receivable sorting it by past due date and amount – therefore very little research is needed; the list of customers to contact is readily available.

Put It in Writing
Some companies try doing collection phone calls, which they think is more effective then letters. While this may be effective for them, we have found that e-mail has been by far the most effective because we can reach more decision makers than just the accounts payable contact.  Copper has effectively increased collections by invoicing customers more quickly than in the past. We also send out past due statements on a monthly basis to remind the customer to pay in a timelier manner.

Get Noticed
One thing that Copper Conferencing does is up the ante with customer contact. It is important to get noticed, and have Copper bills go to the top of the pile of invoices on the accounting manager’s desk.  Here at Copper we send brightly colored e-mails, and we copy the people who it will affect the most – the people who actually use the services.  The color catches the reader’s eye and most of the time the people who use the service will push their payables department to pay the bill to ensure that the service will be available to them.

Be Objective
Finally, one of the most important things to remember when collecting is to use your aging report – not your feelings. Several accounts could go uncollected if a collector “feels” that they are going to get paid. You must make critical decisions which can turn a difficult situation into a win-win for both the business and the customer. Be firm, yet courteous. The goal is not only to bring the customer current, but maintain a good business relationship with your customers.

The collection process is often considered to be a negative activity in a business, yet it is an opportunity to continue to cement your relationship with your customer.  Keep in mind that being flexible, but firm, and objective can not only improve cash flow, but keep the customer coming back to your company.

About Conference Coach Renee
Renee Gregory is the Accounting Manager for Copper Conferencing. She has been in accounting for 14 years. She graduated from The University of Colorado at Denver with a Bachelors degree in Business Management. She loves to spend time with her husband, 5 year old son and 10 month old daughter. She loves to camp, and enjoys the outdoors.

Have questions about Copper Conferencing or need to do an audio conference or web meeting?  Contact a Conference Coach today.