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How automated payment reminders reduce DSO

If you’ve been in business for any length of time, you know what it’s like to sell without actually making money. The very act of selling costs money and when customers don’t pay (on time), the cost of selling, coupled with overall costs of business can really put a strain on day to day operations.

It’s unfortunate that nowadays, fully staffed departments are needed in order to ensure due payments are received. From sending out payment reminders to making and answering phone calls with sometimes difficult customers, dunning takes up a lot of time and it also costs money.

There has to be a better way, right? How can businesses collect payments on time, reduce DSO and improve liquidity? The answer is automation.

Here are three big reasons why automated payment reminders are effective at reducing DSO:

1. Customer friendly

Stay friends with your customers by reminding them of due dates and offering a complete range of secure payment methods. When customers don’t pay, it usually comes down to one of two things: either they forgot to pay or they lack the funds to do so. In both cases, a friendly reminder along with a wide range of payment options is your best bet.

Automated payment reminders make this entire process a whole lot easier. For example, the available payment methods, including the option to pay later or in instalments can be selected and agreed to by the customer, without the need to converse with company staff.

Moreover, by sending personalised reminders, customers feel more at ease and in control. This is especially true for millennials. They respond well to a friendly approach. A 2013 poll found that millennials were more forgetful than seniors. Among the possible causes were high levels of stress. In a 2015 report by the American Psychological Association, this was proven once again. This generation, marred by high debt and financial stress could definitely use a bit of TLC.

2. Relevant and effective

The traditional letter in the mail doesn’t cut it anymore. On the whole, many consumers have adopted a ‘digital first’ mindset. In other words, if you don’t expect customers to show up with paper money, why limit your approach to paper letters?

Automated payment reminders can be sent via the communication channels your customers prefer, whether it’s WhatsApp, interactive video, QR code, email, SMS, voice etc. Communicating with your customers through the means they prefer is cost-efficient and highly effective.

Voice reminders are especially effective at freeing up staff so they have more time to focus on complex matters like helping customers with invoice queries and custom payment plans. Learn more about voice reminders by checking out our Effective Payment Collection whitepaper.

Moreover, by segmenting your customers you could use different communication channels for different customer groups. For example, you could send payment reminders via WhatsApp to a millennial audience and traditional mail to baby boomers. Clear messages sent through relevant communication channels increase conversions and reduce DSO.

3. Insightful

Automated payment reminder platforms like the one offered by Alphacomm Solutions offer valuable insights into customer behaviour. Use the business intelligence data to find out which methods yield the best results and adapt your strategy accordingly.

 

Your people are your most valuable asset. Make sure they are free to focus on valuable tasks that push the company forward by automating the payment collection process. Contact Alphacomm Solutions for more information on our Payment Reminders solutions.

Get in touch with our team for more information on our business solutions.

Alphacomm Solutions whitepaper: how automated payment reminder systems boost your credit management performance

Michael Martens
Head of Sales

Latest articles

Automatic Top-Up - Alphacomm Solutions - Reloads

How automated payment reminders reduce DSO

If you’ve been in business for any length of time, you know what it’s like to sell without actually making money. The very act of selling costs money and when customers don’t pay (on time), the cost of selling, coupled with overall costs of business can really put a strain on day to day operations.

It’s unfortunate that nowadays, fully staffed departments are needed in order to ensure due payments are received. From sending out payment reminders to making and answering phone calls with sometimes difficult customers, dunning takes up a lot of time and it also costs money.

There has to be a better way, right? How can businesses collect payments on time, reduce DSO and improve liquidity? The answer is automation.

Here are three big reasons why automated payment reminders are effective at reducing DSO:

1. Customer friendly

Stay friends with your customers by reminding them of due dates and offering a complete range of secure payment methods. When customers don’t pay, it usually comes down to one of two things: either they forgot to pay or they lack the funds to do so. In both cases, a friendly reminder along with a wide range of payment options is your best bet.

Automated payment reminders make this entire process a whole lot easier. For example, the available payment methods, including the option to pay later or in instalments can be selected and agreed to by the customer, without the need to converse with company staff.

Moreover, by sending personalised reminders, customers feel more at ease and in control. This is especially true for millennials. They respond well to a friendly approach. A 2013 poll found that millennials were more forgetful than seniors. Among the possible causes were high levels of stress. In a 2015 report by the American Psychological Association, this was proven once again. This generation, marred by high debt and financial stress could definitely use a bit of TLC.

2. Relevant and effective

The traditional letter in the mail doesn’t cut it anymore. On the whole, many consumers have adopted a ‘digital first’ mindset. In other words, if you don’t expect customers to show up with paper money, why limit your approach to paper letters?

Automated payment reminders can be sent via the communication channels your customers prefer, whether it’s WhatsApp, interactive video, QR code, email, SMS, voice etc. Communicating with your customers through the means they prefer is cost-efficient and highly effective.

Voice reminders are especially effective at freeing up staff so they have more time to focus on complex matters like helping customers with invoice queries and custom payment plans. Learn more about voice reminders by checking out our Effective Payment Collection whitepaper.

Moreover, by segmenting your customers you could use different communication channels for different customer groups. For example, you could send payment reminders via WhatsApp to a millennial audience and traditional mail to baby boomers. Clear messages sent through relevant communication channels increase conversions and reduce DSO.

3. Insightful

Automated payment reminder platforms like the one offered by Alphacomm Solutions offer valuable insights into customer behaviour. Use the business intelligence data to find out which methods yield the best results and adapt your strategy accordingly.

 

Your people are your most valuable asset. Make sure they are free to focus on valuable tasks that push the company forward by automating the payment collection process. Contact Alphacomm Solutions for more information on our Payment Reminders solutions.

Get in touch with our team for more information on our business solutions.

Alphacomm Solutions whitepaper: how automated payment reminder systems boost your credit management performance

Michael Martens
Head of Sales

Latest articles

Automatic Top-Up - Alphacomm Solutions - Reloads

Alphacomm interactive video reminders simplify the payment process and reduce the need for dunning.

[Leest u dit bericht liever in het Nederlands? Klik dan hier.]

ROTTERDAM, November 2018 – Alphacomm Solutions launches interactive video reminders solution for payment collection.

Many households have problems when it comes to paying their bills on time. While low income or forgetfulness usually play a role in late payments, the fact that language can also be a barrier to effective payment collection is often underestimated.

What often complicates matters is the fact that many customers with arrears also tend to have low literacy. This makes understanding a request for payment in letter-form with complicated jargon or legal speak a daunting task.

Moreover, various solutions offered in arrears are fragmented and therefore add to the problem. While payment arrangements and debt assistance are often possible, they require the debtor to call a special phone number or log on to a specific page of a website. These challenges are compounded when customers have low literacy.

Alphacomm video reminders
In an effort to better support this vulnerable group, Alphacomm has successfully developed and launched a video reminder platform. A video reminder is an interactive and personalised video, that uses clear animations and understandable text to remind debtors of an outstanding payment. Various contact options and solutions are also offered alongside the video. For example, debtors can immediately opt for making a payment arrangement, pay the full amount at once or object to the request. The video reminder also offers a clear route to debt assistance.

Alphacomm video reminders can be sent via SMS, email, WhatsApp or included in a letter as a scannable QR code. What’s more, Alphacomm has a dedicated team of experts managing the entire production, hosting and distribution of the video reminders. The upshot of which is an optimal and efficient handling of the whole process.

Alphacomm

Alphacomm is a trusted global partner in all top up, reminder dunning and payment challenges. Alphacomm was founded in 1997 by CEO Huub Sparnaay on the promise of securing revenue for companies around the world. Currently, Alphacomm is striving to become the world number one in securing payments by the year 2025. Alphacomm is based in Rotterdam, The Netherlands.

Video reminders are changing the world of creditmanagement

Just as options for payment are changing rapidly, so are options for debt collection. In fact, with personalized video reminders, the future of payment reminders is here now. What differentiates this payment reminder solution from other methods is that it centralizes all payment options in one reminder. Not only can debtors opt to pay immediately, they can also select other payment solutions such as payment via email, settling the debt in installments or setting up debt assistance with a credit counselor, all with just one click. This cutting-edge payment reminder solution also offers a unique channel for reaching the visually-impaired, illiterate customers, customers who speak another language, and younger customers who are all harder to reach via traditional channels.

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