Having customers who don't pay their bills as agreed is just one of the many pitfalls of owning a business. While collecting the money owed is important to your bottom line, the act of doing so can damage your relationship with clients. Making an effort to maintain a good relationship with your past due customers can increase your chances of getting paid, secure future business, and reduce the risk the client will complain about you to others. Here are a few tips for staying on good terms with your customer while still getting paid.
Always Treat Customers with Respect
This may seem like obvious advice, but some business owners choose to take a combative stance when dealing with past-due customers, often under the mistaken belief that customers are trying to cheat them or that being harsh will scare the customers into paying.
However, being rude typically has the opposite effect. Customers will begin avoiding your calls, making it difficult for you to negotiate repayment. Some may even complain about your rude behavior on social media, inciting a backlash against your company that could cost you sales.
To give yourself the best chance of collecting the cash and avoiding hurting your brand, always approach the customer in a friendly but professional manner. Make the customer feel as though you're on his or her side by listening to what the person is saying and responding with empathy. If the customer thinks you genuinely want to help, then the person is more likely to work with you to pay off the debt.
Emphasize the Benefits of Paying the Bill
When attempting to collect past due bills, many times people will focus on telling clients about the consequences of being delinquent. However, emphasizing the benefits of bringing the account current can be just as motivating. For instance, you can talk about how making the payment lets you continue offering the client low prices because you don't have to recoup your losses by charging more for products and services.
Even phrasing the consequences in a positive way can ease the tension between you and the customer. For instance, instead of saying "You'll be charged a late fee if you don't pay" say "Paying this bill by the specified date will help you avoid a late fee". Rather than feeling as though they're being punished like children, customers may instead feel like they're getting something good out of the deal.
Be Willing to Negotiate
People fall behind on bills for a number of reasons, including changes in life circumstances such as job loss. Be willing to negotiate according to the client's needs. If the client has to make monthly payments because his or her budget is too tight, then be flexible about getting the bill paid that way. It's better to get bill paid in full over six months than to receive nothing at all. Being flexible will also make the customer feel like you're making an effort to help, which can help protect your relationship with them.
For more tips on handling past due accounts or assistance with collection activities, connect with a company in your area that offers collections services, like AA Fast Eviction Service.
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