As a supplier, staying proactive with accounts receivable (AR) collections is not only good business practice, but is also good customer relationship management. How can your AR process foster better client relationships?
With 15 years of experience, Nicole Dwyer, YayPay's Chief Product Officer, is familiar with the complex space of business to business (B2B) transactions. In her 25-minute conversation with PayPod’s host, Scott Hawksworth, Nicole explains how AR metrics tend to be lagging indicators when measuring the health of a business. However, when developing a positive customer experience, they can also be used as leading indicators to tell you about the health of your client relationships. (Learn more about how to read and understand AR collections metrics.)
Having done extensive customer interviews as YayPay’s Chief Product Officer, Nicole highlights these three ways that AR management can be used to enhance customer relationships:
- Visibility: Clearly define your metrics and keep them highly visible. Whether you are on the finance, sales, or customer success team, anyone who impacts customer relationships should have easy, real-time access to these metrics. Understand ahead of time the implications of metric shifts and identify the corresponding collections and customer success actions that must be taken as a result.
- Predictability: The only true way to be strategic instead of reactive in managing customer relationship is through accurate predictions of payment behavior. Know when your customer will likely pay an invoice and plan your communication accordingly. But first -- get yourself a crystal ball.
- Self-Service: Self-service is a form of customer empowerment as well as supplier empowerment. By providing a simple-to-use customer portal, not only are your customers able to take ownership of their outstanding invoices, but you can also take back the reins in determining payment options.
Today, Nicole has incorporated these three key learnings into YayPay’s product features and user interface. The YayPay platform focuses on providing:
- one-click access to all relevant metrics to evaluate the AR pipeline
- provide self-service capabilities, and
- predict payment behavior at 94% accuracy
Check out Nicole's podcast episode on AR management to learn more:
Soar Payments’ PayPod is a weekly show that features weekly interviews with leading payment professionals. Learn more about how YayPay can change your collection experience and schedule a demo with us today!