When it comes to the collection of account receivables, recent research has shown that customer service has a more integral role to play in payment collections than previously believed. This may come as a surprise to many organizations, as the collection space hasn't necessarily been seen as synonymous with customer service in its history, but the simple facts can't be ignored. Evidence has shown that the breakdown of human interaction in modern business is causing many of today’s revenue difficulties across a wide range of businesses and industries.
In the past, people communicated face-to-face. However, today, technology has eliminated the need for some personal interactions. While this is great news for streamlining businesses and improving productivity, it can erode customer service. However, organizations that have embraced both the customer service and the digital payment platforms have seen spectacular returns on their foresight into what today's consumer is really looking for. And that's a convenient, enjoyable payment experience with only as much direct interaction as needed, with no direct interaction being the typical choice when utilizing a simple, easy to navigate payment options.
How can better customer service aid companies in improving their ARM processes? Let’s look at the reasons.
The Avoidance of Customer Contact
At one time, not so long ago, customer contact was the goal of organizations. Offering a more personal level of service was the key to success. Today, personalization is still important in business. However, AI and other technological developments manage to achieve this. The real hands-on experience is no longer in evidence. In grocery stores, self-scanning checkout machines have replaced many human assistants. In the bank, screens have often replaced the human teller. In collections departments, however, this lack of contact leads to revenue problems.
Poor Customer Services Leads to Collections Issues
Many organizations fail to see the connection between customer service and collections. Poor communication can lead to up to 50 percent of accounts ending up in collections. Companies that excel in their customer support find that their delinquent account numbers drop.
The more a company talks to its customers to resolve problems, the easier the collection of accounts receivable will be. While automation has a lot of uses and can be instrumental in many areas, humans have a role to play. By finding ways to improve the customer experience, a company can resolve its collections issues.
Improving the Customer Experience
So, what does it mean to improve the customer experience? It means communicating with customers at all stages of their experience to build up a relationship. It means staying on top of any financial issues affecting customers. It means raising issues as soon as they occur in order to resolve them.
Is that all that is necessary for customer service to improve? The answer is no. Human contact has a role to play in collections, but there also needs to be convenience. Once an account becomes delinquent, the key lies in making it convenient for a customer to pay it. Without a speedy and accessible solution on hand, receiving money on time becomes increasingly difficult.
BillingTree offers cutting-edge solutions to the collection of accounts receivable. By integrating all aspects of accounts management into a single convenient platform, BillingTree simplifies the process of receiving payments. Web portals represent one simple ARM solution. This makes it easy for consumers to make payments in the method and at the time of their choosing. When consumers have this flexibility in their options, they are more likely to pay on time and in full. BillingTree’s solutions are all fully secure and compliant for peace of mind. They are also simple to use to facilitate speedy payment.
Although personal contact is vital in the early stages of collections, online solutions are also a vital customer service tool. Today’s consumers value automation and online convenience. Offering them an Internet solution for making payments has its advantages. Customers want to know that their needs and preferences are being met. Through the right combination of human contact and online collection of accounts receivable solutions, a company can increase its customers' satisfaction. Together, today’s modern solutions can increase revenue while improving the customer experience all around.
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