How to get prompt payment from customers
These steps will need to be followed completely by every person who is involved with this sale. The reason is that if there is variance, the value of the process will deteriorate, and in time, money will be lost.
Step 1: Consistency
There is a need for consistency in every part of the marketing sale, and collection of the purchase price. The reason is that if there is a variance, in the process you will find that questions and confusion will be the result. This result will end in a pattern of lost money.
However, by simply keeping the standard across the board consistent you will have the same thing happening over and over. For instance, if every sale has the same price configurations, the same processes for payment and finally the same process for collection there will be no questions and no confusion.
This is an example of how this will work.
Sale price $54.00
The customer pays the full price at the time of the sell.
That is a consistent and complete process. If your process allows for payment, then you will be looking at a little more hassle. However, it is very possible to get the payment promptly.
Sale Price $54.00
Now it is time to collect prompt payments for the money left owing.
Step 2: Remind the customer
The next step covers what to do after the payment process is set up. What needs to happen is that with every outstanding account there needs to be the same process.
At the same time at equal time frames, someone will need to contact the customer to remind them of payment.
Here is how that works.
Starting June 1, 07 the purchase was made.
This is just an example. However, if the customer is not reminded by a phone call, or letter to get the payment in, then the next step becomes necessary.This is also time to assess the fees and interest that should be applied to the account.
Step 3: Collecting on missed payments
This is where getting prompt payment becomes more difficult. The customer has forgotten their payments for long enough that now the full payment is due and they do not have a great deal of time to come up with this payment.
The customer has however been reminded of their payment, hopefully they have had a chance to pay on some of the debt. However, this is not your concern. The concern you have is getting a prompt payment for the owing money. There is no emotional connection due in this situation. Maintain a professional and customer care position. However, also be firm in the fact that the payment in full is due at that time.
In some instances the customer will not be able to make that payment no matter what. This is when negotiations for the payment will be necessary. Request as much as the customer can pay at that time, and then get a for sure schedule of when that next payment can be. This would look like this.
This will result in a payment. However, you may still need to call the customer.
Step 4: Complete the collections
This is when you will follow up on that last payment of $18.60. When you call that Friday you are faced with a customer who says they have only got $10.00. This is when you need to accept the $10.00 and ask if there is any other way they can pay the remaining today or tomorrow. This will make it more difficult for the customer to blow off your payment.
If they cannot, you will need to set up the quickest payment promise. This is likely going to be the next payday.
Step 5: Get the last payment
Every penny counts. That last payment is needed. When customers are used to being late, missing payments, and having debt, they will often times not pay the last payment on a bill. This is why for you to be able to get the full payment due on a product or service you will need to maintain consistency.
Calling on the date planned to obtain the final payment is key. This way you retain your customer, and not lose out on the money owed. That last money is just as important as the first. At this point the payment amount is lower, the customer will more than likely pay. The collection of this product was completed rather promptly and the hassle was minimal all the way around.
The main thing in collecting prompt payments from customers is consistency and follows through.