Finance News & Insights

2 steps this company used to get a 72% payment rate

If your Collections department doesn’t have the time or resources to send out those gentle reminders to late payers, you may have success with these tactics.

Here are two painless — but effective — ways to get late customers paying sooner:

1. Sync your e-mail with late-payers. With this move, you’ll be able to pull info from the A/R system and personalize an e-mail message once a customer hits a certain late mark.

2. Hit em early. The sooner you remind customers, the better. Try sending the e-mail out around 5-7 days after the customer is past due.

The late-payer e-mail strategy worked wonders for one Virginia-based credit union. The company started sending e-mail reminders to customers that were five days past due.

Result: 2,257 notifications got the company a 72% payment rate.

One caution: This strategy probably won’t be effective with extremely late customers. In these cases, you’ll likely have to opt for a more personal approach.

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