Feb 1, 2024

How To Ease Your Followup Pain

Are you one of those entrepreneurs who struggles to get the payments on time? If yes, this blog is for you!

Whether you are an SME or a freelancer, or a big company, one of the most important aspects of any business is the timely collection of payments. Timely payment is essential to keep your business rolling. It brings a lot of stability to your business and supports the business health.

However, irrespective of how much we dislike it, timely payments are a struggle for every company. As per a recent survey, 54% of businesses said it took too long to receive customer payments, and 77% said their clients did not pay on time. Sometimes unpaid invoices can put companies in an inconvenient situation.

While it is essential to maintain a strong relationship with clients, that relationship will not do much good if you are not getting paid on time.

6 Steps for Easy Payment Follow Up

1. Clear Credit Policy :

It is essential to clarify the credit policies to the clients. While it is ok for some industries to have 30 days credit policy, some enterprises prefer 90 days of credit. While in some circumstances, policy differs from client to client or product to product.  Whatever it is, it should be communicated clearly while providing the service.

The due date and other terms and conditions should be stated clearly in the invoice.  Also, the credit policies vary from industry to industry.

2. Customer Segmentation :

Do the customer segmentation based on their payment terms under the heading due, overdue, and under due. It will help the organization clarify which customer needs a rigorous follow-up and which one needs a simple reminder. This will save a lot of time and energy.  Such handy information about customers also requires proper maintenance of data.

3. Multiple Payment Gateways

In this digital era where everything is happening online, and everything comes with two or more options, it is vital to have an option in payment mode. As per the recent survey, 37% of the companies have experienced faster payments by offering more than seven ways to accept payments like Paytm, BharatPe, NEFT, RTGS, Debit card, Credit card, etc.

The more option you will provide to your clients for payments, the easier it will be to receive the payments on time. Also, various invoicing software available in the markets can help you on a larger scale.

4. Discounts :

Offering a discount on the payments before the due dates attract an instant amount. A small percentage discount before the payment of due date can be enticing enough for the clients to make the payment. In the same way, regularly informing the clients about the penalty on late fees will work wonders and fetch you timely payments.

These two have proven to be the most effective ways to collect timely payments.

5. Efficient Follow-up Process :

The sales team should be thoroughly trained in the follow-up process. An entrepreneur can’t keep a check on every client’s payment due. Here the salesperson should be given authority to provide discounts when needed.

Also, several factors under the process, such as automated reminders for, e.g., overdue payment reminders or payment reminders before the due date, payment follow-up mails and messages, and polite payment reminders over an SMS, should be discussed based on their segmentation.  Reminders, which are system driven, not taken negatively by customers compare to reminder made by person.

6. Average Payment Collection Days :

We can keep track of APCD and accordingly schedule the follow-up. Regular visibility of APCD Trends helps identify the gaps in payment collection. This gives a clear idea of which payment follow-up strategy to use for a client. The trend for APCD along, when looked at ahead with margin, helps the decision-maker make an insightful decision.

Timely payment is a struggle everyone faces. However, it is essential to get payments on time to keep the business in a healthy state of mind.

Following the simple steps discussed above can help you relieve your pain and get the payment on time. Which of the above-discussed tricks are you going to imply in your system? Let me know in the below-given comment section.

Create MIS Reports with Magenta Insights

MIS reports are essential for the effective management of computer networks. Many organizations use MIS reports to format the entire organization, for which a good MIS is a must. It’s important to adopt efficient ways to obtain MIS reports. Once you get used to using tools like MagentaBi to create your MIS reports, you can obtain such reports regularly and without fail, which will help you stay updated and make important business decisions.

Customer retention is the key

Lorem ipsum dolor sit amet, consectetur adipiscing elit lobortis arcu enim urna adipiscing praesent velit viverra sit semper lorem eu cursus vel hendrerit elementum morbi curabitur etiam nibh justo, lorem aliquet donec sed sit mi dignissim at ante massa mattis.

  1. Neque sodales ut etiam sit amet nisl purus non tellus orci ac auctor
  2. Adipiscing elit ut aliquam purus sit amet viverra suspendisse potent
  3. Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
  4. Excepteur sint occaecat cupidatat non proident sunt in culpa qui officia

What are the most relevant factors to consider?

Vitae congue eu consequat ac felis placerat vestibulum lectus mauris ultrices cursus sit amet dictum sit amet justo donec enim diam porttitor lacus luctus accumsan tortor posuere praesent tristique magna sit amet purus gravida quis blandit turpis.

Odio facilisis mauris sit amet massa vitae tortor.

Don’t overspend on growth marketing without good retention rates

At risus viverra adipiscing at in tellus integer feugiat nisl pretium fusce id velit ut tortor sagittis orci a scelerisque purus semper eget at lectus urna duis convallis porta nibh venenatis cras sed felis eget neque laoreet suspendisse interdum consectetur libero id faucibus nisl donec pretium vulputate sapien nec sagittis aliquam nunc lobortis mattis aliquam faucibus purus in.

  • Neque sodales ut etiam sit amet nisl purus non tellus orci ac auctor
  • Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti
  • Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
  • Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti
What’s the ideal customer retention rate?

Nisi quis eleifend quam adipiscing vitae aliquet bibendum enim facilisis gravida neque euismod in pellentesque massa placerat volutpat lacus laoreet non curabitur gravida odio aenean sed adipiscing diam donec adipiscing tristique risus amet est placerat in egestas erat.

“Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua enim ad minim veniam.”
Next steps to increase your customer retention

Eget lorem dolor sed viverra ipsum nunc aliquet bibendum felis donec et odio pellentesque diam volutpat commodo sed egestas aliquam sem fringilla ut morbi tincidunt augue interdum velit euismod eu tincidunt tortor aliquam nulla facilisi aenean sed adipiscing diam donec adipiscing ut lectus arcu bibendum at varius vel pharetra nibh venenatis cras sed felis eget.

Subscribe to our newsletter today!

You'll receive One Metric for Growth (OMG) every week. 1 Actionable Metric that you can implement in your Business.

Thanks for subscribing to our newsletter
Oops! Something went wrong while submitting the form.
Subscribe to Our Newsletter - Marketup X Webflow Template