There are three common customer complaints in AR. Do you know how to solve them?
Take a moment to think about your favorite brand.
Can’t think of one? I’ll tell you mine.
Netflix.
Yes, I know that their share price has recently taken a hit. Primarily because investors overestimated the company’s growth potential after a prosperous couple of years.
However, I’m focused on the fantastic customer service that helped them achieve success in the first place. How they tailor people’s viewing experiences to adapt to their interests. The way they contact customers on WhatsApp when their favorite series has released a new episode. And their intuitive interface that makes it effortless to sign up, cancel, and of course, quickly find something fun to watch.
It’s personalized, engaging and easy to use.
Now, compare that to a manual collections process that provides a slow, generic and hard-to-navigate customer experience. Today, B2B services are expected to match B2C ones and when they don’t, customers jump ship. In fact, Emplify found that 86% of consumers will leave a brand they trusted after only two poor experiences.
So, what are the major customer complaints around manual collections and how can organizations address them?
Complaint #1 — Stop contacting me late for payment
Did you know that firms reliant on manual collections take 67% more time to follow up on overdue payments? And that these businesses have 30% longer average days sales outstanding (DSO) than companies that rely on automated processes?
You may think that customers would be happy when you’re not chasing them for money. However, slow follow-ups can signal that their business is being neglected. And giving them this impression will not get you paid quickly.
PWC identifies speed and consistency as key ingredients for a great customer experience. The truth is, people enjoy a systematic approach. They like knowing what to expect and they become reliant on reminders and updates.
An automated AR system handles many of the manual and repetitive collections activities, ensuring you’re never too busy to reach out to customers. Automated emails enable you to contact your clients on time, every time. This not only alleviates your team’s stress — it lets companies know that you are invested in them.
Complaint #2 — Stop sending me generic emails
Netflix has shown how powerful it is to customize experiences. By getting to know what your customers want, as well as their habits, you’ll be able to build a service that truly makes them feel valued. This isn’t just a B2C priority. A recent PYMNTS’ study found that 67% of B2B buyers have switched to vendors with more consumer-like experiences.
When it comes to manual collections, this is close to impossible to achieve. Accounts receivable professionals are burdened with the task of contacting a large number of customers each week and they simply don’t have the time to individualize their approach. Unfortunately, this impacts how engaged a client is and therefore how quickly they pay. Our friends at Jumio, an identity verification company and YayPay user, experienced this problem firsthand.
“I spent an entire day each week manually contacting customers with overdue balances. We realized we needed to automate our efforts to save time and improve collection speed.”
Staff Accountant, Jumio
With an automated AR system, you can create a smart communications program for each customer segment. For example, an accounts payable manager will want to receive billing information regularly so that they can stay on top of payments. On the other hand, a CFO requires less frequent communication and is likely more interested in receiving business updates and market information. Automated workflows enable you to deliver these personalized experiences that keep people paying for your brand.
Want to learn how to improve the AR customer experience — from a finance industry expert? Join our 20-minute masterclass on May 24th at 10am ET / 3pm BST!
Complaint #3 — Stop making it so hard to pay
Even if you are contacting customers on time and providing a personalized service, these efforts will be undermined if your payment process isn’t optimized.
If your customers need to spend time on the phone with your team asking about copies of invoices or balance updates, your payments will be delayed. If they have to dig through their emails looking for account information, they are likely to get sidetracked and move on to something else. And if you expect them to travel to the post office to send a check, you’re making it even harder. Believe it or not, 25% of B2B transactions are still processed via this method.
There is a solution that not only reduces how much time finance teams spend interacting with customers to resend or clarify information. It also empowers customers to manage their accounts almost independently.
A self-service portal provides companies with secure anytime, anywhere access to account information and it offers payment options via wire, ACH or credit card. This provides customers with the flexibility to manage their business on their own terms. The result? A B2C-esque experience that impresses and improves on-time payments for your organization.
What Next?
If you’re interested in learning more about how to improve the AR customer experience — with and without technology — register for our upcoming 20-minute masterclass.
Our finance industry expert, Sarah-Jayne Martin, will share her top tips on Making your AR Customer Experience Shine.
Save your seat today! 👉 https://www.yaypay.com/making-your-ar-cx-shine
