Confused? Well, CRM is simply Customer Relationship Management; so why is Customer Relationship Management important for receivable management? Because whether you get paid or not is greatly influenced by the relationship you share with your clients.
- Retaining Clients– Here is a simple fact- it is more expensive to acquire new clients than it is to retain old clients; which is why it is important that your receivable management efforts don’t adversely affect client relations. There may be many reasons for a non- payment- your client could have simply forgotten, or might be going through a rough patch and there are those who just don’t pay. Now the last type of client you don’t need to keep around, but the rest, well, they deserve a chance and have to be handled with care. So whether you take care of AR yourself or use receivable management services, remember that CRM is crucial.
- Improve Chances of Being Paid– If you treat your client with respect, they will want to continue doing business with you and will make sure that payments reach you on time. This will help to ensure that nothing falls through the cracks and that you get paid on time.
- Keeping Up-to-date and Accurate Information on Customers– Maintain cordial relations with clients and ensure that you have accurate and up-to-date information on your clients. If you use receivable management services, make sure they have correct details. Make it a point to know your point of contact by name and have good relations with them so that payment due calls are easier and not ignored.
Receivable Management services are never easy; it is strenuous and as a business owner you have a lot riding on it. But if you remember that customer relationship management is the key to getting the whole thing sorted, it will do you a lot of good. Besides no one ever said that running a business would be easy, but it is not impossible.