When customers pay late it has real costs to your business
Not only is your cash flow delayed, but chasing customer payments has operational costs. The majority of customers simply forget to pay, but late payers can easily turn delinquent, resulting in increased cost of debt collection and increased business risk.
Engage messaging solutions are designed to help speed up late payment and reduce the cost of collection
With a 98% open rate, SMS payment reminders are one of the most cost effective and efficient communications for payment reminders.
Paying the Price for Late Payments ?
Managing profitability has become a key challenge for many businesses. Not least is a substantial increase in late and delinquent payments. Risk management and collection processes have always been crucial but never more so than now.
Its not just the Financial Services Sector suffering from the cost of late payments. From Utilities, such as Gas, Water, Electricity and Telecoms; to Internet Service Providers, Cable TV and Entertainment companies.
Indeed, any company that takes regular payments is at risk from the damaging effects late payments can have on a business.
The Knock-on Effects on your Customers.......
Would it surprise you to know that the majority of customers do not intend, or even want to, become late payers?
The knock-on effects on your customers are significant in terms of
1. Financial penalties for late payments
2. Detrimental effects to credit scores
3. Affect on future borrowing capability
The truth is that most customers simply forget to pay a bill by the due date, resulting in your business incurring a series of necessary costs simply to remind them to pay a bill which is overdue, as well as impacting your business's cash flow.
Negative experience of the collection process may actually cause your customers to move to one of your competitors.
Not only is your business now bearing the cost of bad debt and poor cash flow but at this stage it is also bearing the cost of new customer acquisition.
Did you know?
19% of Aussies pay their bank, credit card or personal loans late.
The average is 13 days late ( source Pocketbook April 2014 )
Who Can Benefit?
- Retail Banks
- Mortgage Lenders
- Credit Card Issuers
- Insurance Companies
- Utility Companies
- Telecoms Companies
- Internet Service Providers
- Cable TV & Entertainment Companies
- Estate / Travel Agents & Rent Collection Agencies
- Local Authorities
In fact, any organisation collecting regular payments from consumers
How can companies improve their collections processes, whilst decreasing business costs & keeping customers happy ?
1. Understand Payer Behaviour - which customers are unable to pay and which just forgot? Sloppy payers frequently miss payments not because of a lack of funds, but due to simple disorganisation.
2. Be Proactive, Don’t Wait Until It’s Too Late - good collections processes begin before a customer misses payment. Be proactive in communicating. Schedule automated voice, text, or email reminders when bills are due.
3. Use Multiple Channels to Maximise Contact - use a variety of communication channels and messages to maximise
4. Keep the Message Simple - clear and concise contact through a variety of channels will yield the best results.
Business Benefits of Messaging for Late Payment Reminders
- Decrease the Cost of Collections - using live agents to call customers for collections dramatically increases the cost of collection and using direct mail to send out reminder letters is expensive with no guarantee of receipt.
- Improve Cash Flow - by speeding up late payments, you improve your business cash flow. The quicker money is received, the quicker your business can re-invest.
- Increase business efficiency - just how many of your reminder letters end up in the bin? Using voice and text messaging communications, you can instantly see online who has received your bill reminders and who responded.
- Better Management Information - with online statistics and immediate calls to action, you'll be better able to understand your customers’ payment behaviour.
- Improve Customer Satisfaction and Retention - customers that forget to pay on time will appreciate the opportunity of being reminded before they incur penalties. Customers will see this as a value added service and with less complaints about late penalty fees, your customer retention will be higher
- Improved Environmental Footprint - these days, everyone is focused on improving environmental footprint and cutting down on unnecessary paper. Telephony and messaging solutions can cut out the need for paper communications.
Why Choose Engage to help with your Collections Process?
We have a complete range of services which can help your business improve its Collections Processes
From text messaging solutions to voice broadcast systems, we have helped other companies to save money within their Collections Processes and improve their cashflow with exceptional returns on investment.
Engage is cost effective to implement and little upfront investment required, enabling your business to fast track implementation.
Scaleable and flexible whether you are a global banking enterprise or a small rent collection agency.
Simple APIs to integrate to your enterprise systems quickly and efficiently and our management dashboards give you instant access to the information you need to run your business.
Integrate directly into payment gateways to take customer payments directly from an SMS message
Whether you operate in Australia, or internationally, we can help. With connectivity to over 150 countries and offices in 10 territories, we have true global coverage.