Unlocking Underpaid Accounts: Leveraging Automation For Effective Credit And Collections Management
AR COLLECTIONS AUTOMATION
A successful collections automation solution will quickly recoup the cost of its implementation. To understand the potential return-on-investment, executives should consider the impact collections automation will have on customer experience, cost savings, and profitability.
Step 2: Analyze Current Processes By understanding how their current credit and collections process functions, executives will gain the knowledge necessary to identify key areas in need of improvement. Some areas to examine may include manual data entry and processing, customer segmentation and analysis, and collections analytics. Varying levels of automation may exist in different areas necessitating an analysis of each and subsequent development of an appropriate solution.
Step 3: Categorize ClientsOnce all customer activity is reviewed, executives should categorize debtors into distinct groups in order to establish an accurate view of current customer data. Different strategies may need to be applied to different customers or customer types in order to ensure an optimized and tailored experience.
Step 4: Choosing an Automated SolutionExecutives should select an automated solution that offers the tools and capabilities necessary to effectively manage the customer?s accounts receivable. An ideal program will offer seamless customer segmentation, customer analytics, workflow automation, and automated customer communications. Furthermore, the software should contain secure, automated payment processing system to enable the quick and accurate collection of payments.
Step 5: Implement and InsureExecutives should ensure proper implementation of the automation solution. This includes utilizing customer segmentation to assign customers to specific workflows and staff, as well as proper testing of automated payments. With the proper implementation, executives can rest assured that the automation solution will facilitate accurate and consistent credit and collections management.
Step 6: Measure and MonitorOnce implementation is complete, executives should ensure that their automation solution is properly monitored. This will enable them to analyze customer data, evaluate performance, and adjust customer payment terms when necessary.
As technology continues to evolve, the field of credit and collections management must evolve along with it. Automated solutions provide means of improving the quality and efficiency of customer data while also reducing operational costs. By leveraging automation and few simple steps, executives can maximize efficiency and ensure accurate credit and collections management.
