Debt collection is a tough and technical profession, yet fascinating: obtaining payment of invoices contributes to the good financial health of the company – sometimes to its survival – which is a stimulating challenge. Moreover, debt collection is not just about chasing customers in a mechanical and impersonal way: a real strategy makes you more efficient, and the benefits are visible both in terms of DSO and in terms of customer experience.
By definition, debt collection encompasses all the steps taken to obtain payment of an invoice from a debtor. The law authorizes the creditor to use several avenues – in a progressive and proportionate manner:
Amicable collection . In stages, you encourage the debtor customer to pay his invoice late. A simple phone call or a cordial email to start, then one or more follow-up letters if the payment default persists. Final step: formal notice to pay, to be sent by registered AR.
Judicial recovery . This contentious phase requires seizing the judge. You ask for an injunction to pay, or you assign your client to the merits in summary proceedings, to obtain payment of your claim.
Judicial recovery takes place in a contentious context. To be avoided as much as possible, in order to preserve the customer relationship …
Effectively manage your debt collection, and improve your customer experience
Because this is the last stage of their journey, the client keeps a memory of it that is all the more impactful. Your objective: to ensure that payment is made under the best possible conditions, with regard to customer satisfaction – and without forgetting your cash flow issue. By doing so, your customer maintains a good image of your company. You put him in the best position to contract with you again, you increase your chances that he conveys your good reputation in his entourage.
The essential precautions:
Organize your debt collection with precision, so as to have clear and reliable visibility of your actions . In particular, this avoids reminding a customer by mistake – unpleasant for the debtor who has paid his debt on time – and forgetting about it.
Do your customers a favor, remind them of the deadline beforehand ! This thoughtful step allows the debtor to organize himself to pay without delay, he is satisfied with this reminder which comes at the right time in his busy schedule. Another service to provide: facilitate payment by offering dematerialized and secure means.
Personalize your dunning scenarios, depending on the customer profile . Also personalize the text of your emails and letters, to establish a close link. In addition, be sure to remain open to dialogue: you can negotiate with your client in temporary difficulty a longer payment period – always shorter than if you engage in legal proceedings.
Thank your creditors ! This last message from you allows us to conclude on a positive note.
Effective amicable collection avoids going through the litigation phase: your adapted speech and your efficient scenarios prevent litigation, you are paid on time and you improve your customer experience.
The Clearnox software to quickly collect your receivables while caring for your customers
Clearnox, cloud-based debt collection solution, takes an innovative approach. 2 inseparable objectives: reduce your payment terms, and pamper your customers! 3 effective action levers to manage your cash flow: visibility, communication, collaboration.
Focus on 3 Clearnox features for a successful customer experience:
An exhaustive dashboard : you monitor your outstandings in real time, to determine the relevant actions at the right time. You are immediately alerted in the event of an anomaly, you react quickly: by establishing communication with the debtor without delay, you reduce the risk of litigation.
