Be aware of spending too much time on customers that are not worth it. How often do you make calls and send reminders to the same customers? Could it be that around ten per cent of your customers take up about half of your time? Check out how much value those customers actually provide you and start spending your time wisely.
1. Asking for extra service, rather than upgrades
Customers asking for extra service doesn’t have to be a problem – some people just need more help than others, and that’s OK. However, if the reason they need extra care is because they’re using an old or outdated product, the difficulties that they run into could be unnecessary.
One solution is to make it policy that you can only provide support up to a certain point – such as a certain version of the product or year of manufacture. If customers don’t upgrade, then you won’t be responsible for providing service for older products.
2. Not sticking to agreements
If you’ve made special arrangements with your customer regarding when they’re going to pay, it’s certainly reasonable to expect them to stick to that agreement.
And it’s also reasonable for you to be willing to alter those agreements if the customer falls through. However, if this continues, it puts the credit management team in a difficult position. After all, it’s not fair to your business if a customer keeps failing to meet payment terms they have agreed upon.
Credit management software makes it easy to keep track of old agreements. It ensures you have all the necessary information at your fingertips when you speak to a customer. You can remind them of the agreement they made – and when they made it, and even tell them about old agreements that they also failed to fulfill.
In addition, by analysing the old payment information, you can spot trends and recommend a payment plan that works for both you and your customer.
3. Always having an excuse
- “I didn’t receive the invoice.”
- “Oh, we moved offices – didn’t we tell you?”
- “Sorry, the person who deals with that has been on holiday.”
There are plenty of excuses as to why a payment hasn’t been made – and as a credit manager, you’ve probably heard them all. Credit management software keeps track of those excuses and allows you to remind your customers that you’ve been patient up to now.
4. Using complaints as a way to postpone payment
Some customers try anything to postpone making a payment: even thinking up things to complain about in order to avoid sending in the money. Credit management software can be helpful to keep track of complaints, it tells you whether they’ve been dealt with and identify trends between complaints and payments. This can help you see whether you’re spending too much time on the wrong client.
Start spending your time wisely: Contact OnGuard today
Get in touch today to find out more about OnGuard credit management software and how it can help you keep track of the payment behavior of your customer and your mutual relationship.
Contact us on +31(0)294 256 666 or via firstname.lastname@example.org. We also invite you to follow @OnGuardHQ on Twitter.