Cleaning Up Your Payment Process in Three Easy Steps
Spring is the perfect time to do some cleaning, clearing out business practices you don’t need and polishing the processes you choose to keep.
One of the first items demanding attention? The customer payment process.
According to Forbes, the average small business has tens of thousands of dollars in late and unpaid invoices.
While there are a number of factors that can lead to late payments, a significant factor can be the ease of remittance. So, it’s worth asking if your organization's payment options are user-friendly and efficient, or if convoluted steps are making a mess of things.
Are Invoices Sent in a Timely Manner?
Customers can’t send you money until they have received their bill. That means it is vital that you deliver accurate invoices promptly. Though it seems like common sense, many companies struggle in this area.
A lack of integration between CSM, ERP, and accounting software can lead to late deliveries, or inaccurate information being sent, which can lead to invoice exceptions. Not only do these mistakes keep you from getting paid, but they are frustrating for the customer. With 96% of people stating that they’ll stop using a business that provides poor service, that’s not a risk you can afford.
An AR automation solution like YayPay eliminates this concern by integrating with your ERP and the rest of your tech stack and consolidating the data into a single location. It does away with the need for manual data entry, reducing the chance of mistakes.
How Hard is It for Customers to Make Payments?
If the goal is to transform invoices to cash as quickly as possible, it is crucial that the process be as simple as possible. To ensure that this is the case, it’s worth looking for points of friction.
According to Gallup, roughly half of the U.S. workforce state that their job can be completed from home. That’s around 60 million workers.
Perhaps just as importantly, 54% of workers currently working from home say they would look for another job if their current company stopped offering remote work options. 38% of hybrid workers said the same.
With that being the case, you need to ask if your customers make payments from anywhere and at any time. A customer self-service portal, such as the one provided by YayPay, is the most convenient way of providing this.
67% of customers state that they prefer self-service instead of speaking with a representative.
Rather than having to mail in payment, or navigate phone trees to make telepayments, customers can simply log in through the page, review their invoice, and then make their payment. The ability to make payments on their own time and at their convenience, greatly increases the odds that the invoices will be resolved on time.
The portal also provides customers with the ability to raise disputes quickly if there is an issue with the bill. Not only does this provide them with a better experience, but it also increases the speed with which the problems will be resolved.
Do Customers Have a Variety of Payment Options?
Another key component of cleaning up the invoice process is providing a variety of payment options. Like providing a self-service portal, accepting a variety of methods (such as e-check, virtual credit card, or ACH) allows you to meet customers where they are — increasing the likelihood of on-time payments and building loyalty through better service.
Digitized automation solutions allow clients to select the payment style that best suits their needs. YayPay even allows you to pay in batches of up to 25 invoices at a time. It also provides the option of applying any open credits to the payment.
From the beginning to the end of the invoice-to-cash cycle, YayPay helps make the payment process as smooth and efficient as possible while accommodating the needs of your clients. The end result isn’t just money in your pocket faster, but greater customer satisfaction.
To learn more about mastering customer experience in accounts receivable, watch our on-demand masterclass - Making Your AR Customer Experience Shine.