CHAPTER 6: COLLECTIONS
All call activity should be documented in the collection call log, with notes describing the call and the outcome. Notes should be detailed enough for you and your managers to understand the non- payment by the customer. All attempts to collect, all conversations with the customer, promises to pay, etc., should be documented in the call log. Electronic routing of updates keeps department managers and sales reps aware of the status. Be prepared to follow up on any commitment dates to make sure payment is actually received as promised.
BEST PRACTICES
An effective collector needs to have specific personality traits to ensure they are well-suited for their role. Cindy Clark, Senior Manager for Vision Care Billing & AR Services for VSP Vision, says, “The competencies we’ve identified as critical include: action-oriented, resilient, customer-focused, effective communicator, results-driven, a nimble learner, and good at managing ambiguity.”
Courtesy Calls Courtesy phone calls are a recommended practice for customers who are slow to pay their invoices. Call the customer before the invoice is past due to ensure that the customer has the invoice, it is correct, all is in order, and there are no surprises for nonpayment. While a courtesy call may not be possible for all of your company’s billing, such calls are worth considering for customers with larger invoices, as well as for both high-volume and consistently slow-paying customers. Courtesy calls also provide an opportunity to solidify your company’s relationship with the customer. The calls allow you to see if there is anything else your organization can do to support a customer and provide the opportunity to inform them about other services or products your company can provide, potentially increasing revenue. CUSTOMER VISITS In certain cases, collectors should consider calling on the customer in person. In-person visits are most often done with large customer accounts, where substantial amounts of money are tied up in open invoices on accounts receivable. While in-person visits are very beneficial, they are also time- consuming and can involve substantial travel expenses. For these reasons, care should be taken to ensure the benefits outweigh the costs. While this is a practice more common in B2B, there are some B2C industries in which a collector meets with the consumer—either in the company’s offices, a public location, or the consumer’s residence.
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THE ACCOUNTS RECEIVABLE SPECIALIST CERTIFICATION PROGRAM E-TEXTBOOK
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