Non-Payers are Big Players
Fact is, some customers will string you along for payments because it’s in their nature. They don’t want to let go of that money that is owed to you. They exploit even the smallest gap in your billing and collection system and in some cases they are very effective.
Approximately 3% of customers make you work overtime to get paid. People who fall into this category avoid payment even in a good economy. So how do you combat such clients? Using proven methods to train them to pay transforms a slacker into a good customer. Many times we need to look at our approach to billing and collection to determine how we can improve. Stop blaming the customer and take measure to combat their dead beat nature. It’s difficult for many business owners to admit there is room for improvement and they continue along the same path for years. We cannot continue in a pattern of begging some customers for payment or chasing money. How many customers have you fired because they are just too difficult? That translates into a loss of income when it could have been corrected.
Good billing practices and simple strategies such as return envelopes, the appearance of your invoice, and how you ask for payment has an enormous impact on revenue. Can your customers pay with ease? Do you take only cash or one kind of credit card? Make every payment option available and give easy access and complete availability to pay. How many times have you walked into a doctor’s office and were able to leave without paying the co-pay? This is just one example of a missed opportunity by your doctor to get paid right away which saves time and money. All they have to do is ask the patient for the co-pay when they go to the window. It’s that simple but not every doctor follows this simple procedure and they lose income and waste time. Fact is, more people would rather pay right there and get it done. While some doctors are finally catching on, others continue to ignore this simple strategy.
How do you contact clients? Do you use snail mail, phone or texting? If you are not keeping up with today’s fastest communication methods, you will soon fall behind and not properly compete in today’s market place. When you understand what motivates non-payers to pay, you will have the advantage in virtually every business relationship. You can create a sense of urgency in these clients. Once you know how to get them into a habit of payment, they become very good clients. Consistency, tact and proven methods are the key elements to your success and stress reduction.
Christopher Mangan is the President of CJM Billing Solution, Inc. and the author of the Top 10 Billing Secrets.
