If you search “delinquencies” in relation to electronic payments right now, you’ll likely find that late payments are a more common problem than you may have originally believed.
With today’s companies under increased pressure to reduce costs and boost revenues, it is critical that they get a handle on reducing delinquencies. So how can you address these delinquencies in the most efficient way?
Here are four steps that can help organizations achieve reduced delinquencies:
- Offer a variety of payment options. You will find your number of delinquencies decreasing when you offer various payment options to your customers. According to one study, approximately one in five households changes the way they pay their bills each month, with nearly 30 percent doing so to avoid having to make a late payment. While some people’s circumstances change, such as the availability of funds, billing due dates and personal crises, at the end of the day, most customers really do want to avoid late payments. Thus, it is crucial to offer different payment options to customers to help make sure you get paid, and that your customers are able to make timely payments in a method that works best for their personal situation.
- Encourage recurring payments. You can aim to make bill payment easy by offering recurring payments to your customers. Not only is it secure and convenient for customers, but it also ensures you receive your payments on time. This method also eliminates mail delivery reliance, customers having to remember to pay their bill or any other reasons for missed payments.
- Encourage paperless adoption. Studies show that those customers who receive electronic bills tend to be more satisfied and reliable customers. By encouraging paperless adoption, you are in turn developing a more satisfied customer base. These customers, in many cases, are then more likely to be receptive to other types of account management features, including enrollment in recurring payments.
- Always use real-time data. Using a single, real-time data source of customer information keeps everyone on the same page. This approach also facilitates the seamless posting of payments and balances, regardless of the customer’s payment preference.
Remember: While each method can indeed work independently to reduce delinquencies, using them together is the best way to truly deal with reducing your organization’s overall delinquencies.
At BillingTree, we specialize in helping companies increase their electronic payment collections. We combine state-of-the-art technology with decades of customer-service experience to give clients the latest payment services available to succeed in a highly competitive marketplace.