Deadbeat Customers
Some clients drag their feet every month when it comes to paying. They drive high-end automobiles and avoid paying their bill while spending money on the latest gadget. While we stay away from using the term “deadbeat” these clients exude the very essence of the term. So what can you do to stop them? Better yet, what can be done to change their complacency?
It’s important to know that you can train deadbeats to pay. You can change their bad habits and poor payment history and bring them into a habit of payment. Remember this; “everything is marketing” and you must sell clients on paying their bill. This includes your entire accounts receivable process which consists of your invoice appearance, timing of billing, past due letters, payment methods, and client contact strategies. Let’s not forget client expectations which you set from the first meeting. When you communicate the proper expectations from the beginning, you create an environment where customers pay. Many times the standards and expectations are not communicated from the onset and the business relationship declines from there. This happens too often and your rate of success is directly tied to how well you sell customers on paying their bill. Different clients respond to different techniques so covering all the bases from start to finish increases your chances of getting paid in full and on time.
With the proper examination of the billing, collections, and accounts receivable process, it becomes evident where you can stop debtors from taking advantage. Virtually all non-payers are playing a game and exploiting any weakness in the billing and collection process. So many good businesses continue to perform the same every month because they are content, for the most part, with the amount coming in. They are not fully aware what they are losing. It’s this revenue loss, the related costs and the frustration felt by employees that should prompt executives to make the necessary changes. We waste too much time chasing problems that could have been avoided. This is a serious problem and far that too many firms overlook.
Finally, your ability to recognize when a change occurs and make suitable compensation to clients can garner a trust that builds your relationship. This “created” environment guarantees greater success of timely payments and builds your company’s reputation. All of this translates into guaranteed greater revenue and ongoing success.
CJM Billing Solution, Inc. is becoming one of the leading accounts receivable firms in the nation because of our ability to recognize the problems of non-paying customers and how to retrain them and keep them current. We are effective in helping firms overcome the “business as usual” mentality that stifles growth and creates complacency in many of today’s companies. Christopher Mangan is the author of Top 10 Billing Secrets.
For more information on how we can help your business, call us toll free (855)867-2455.
