May 6, 2021Late Payments
If your overdue invoices are building up, no doubt you have looked at ways of automating the process using some type of reminder process.
This most likely has been out of your accounting software; however you may not have turned them on as they don’t provide the right solution for you and your customers.
Done right, reminders are a game changer when it comes to collections and you need them if you want to keep your cash flow strong. A great way to tackle this issue is by using an automated system to take this task off your hands. You will be guided by personal preference, but the system you choose needs to communicate with your customers using the right delivery method, at the right time, with the right message.
Below are 10 rules for better invoice reminders.
Instead of manually picking up the phone and having uncomfortable conversations with your customers, you can separate the debt from the business relationship by having reminders on autopilot. On average we have seen our suppliers cut down an average of 4 hours each week by automating this procedure, helping accounts staff to be more productive.
Keeps relationships positive
With polite and personalised reminders, you can keep your invoice at the top of your customers mind without needing to feel like you are harassing them. It’s a light reminder that won’t get on your customers nerves.
If you are planning to create your own reminder templates, here are a couple tips you can use to make sure they stand out and get you paid.
Think about reminders from your customers perspective.
Most reminders are sent via email through your accounting software. The issue with many accounting software-based reminders is they lack flexibility. Variables like when the first reminder goes out, what the frequency of the further reminders will be, the time of the day that they are sent and the method (SMS or Email) all matter. Finding a solution which allows individual settings (as above) for each and every customer will on one hand; increase payment speed and on the other hand; not piss any customers off.
More than 50% of all emails are read via mobile. If your reminders do not appear or look unprofessional on a mobile view, you customers won’t know what the email content is about and are unable to pay your bill.
Personalise Your Messaging.
Always personalise your reminders. Address the buyer by name on the invoice and email.
Send to the right contact.
You would be amazed at how many people get this wrong or have an incorrect contact stored against a customer. Make sure you have identified the right person in the company and sending your invoices to them. Sending payment reminders to the wrong person won’t help your cause.
Subject lines determines whether your emails are read or not. Be short, sweet and descriptive with your subject line. Tell your customer exactly what your email is about so they have a need to open it.
No one wants to do business with an someone who is going to make their day a negative one. Most of the time, your customer probably just forgot and overlooked your invoice. Be polite and understanding with your customers to keep the business relationships positive.
Make it easy to pay.
By having your payment options on your reminders, you save your customer having to log into their bank account to complete the payment. You must remove all excuses and ensure the fastest possible way home.
Provide your contact details.
You should always have your email and phone number available on your reminder in case they are experiencing any payment issues with the one you have provided. Provide you name, emails and a mobile number for SMS conversations.
Feel free to use this email reminder template we have written up for you to use.
Payment Reminder Templates:
Subject: Overdue Invoice [INSERT YOUR INVOICE NUMBER]
Hi [CUSTOMER NAME]
I hope you are well. I am just following up with a friendly reminder that your invoice (INV NUMBER) is now (DAYS OVEREDUE) days late. (This should go up as an invoice gets more overdue)
I have attached your invoice/s in this email for your reference.
You can pay now by clicking this link.
Please contact us ASAP if you have any queries or issues with payment.
[YOUR EMAIL AND PHONE NUMBER]
SMS Template (Character Limits apply)
Hi (First Name). This is a friendly reminder that your invoice (INV NUMBER) is now (DAYS OVEREDUE) days late. You can pay now by clicking this link. Please contact us if you have any queries or issues with payment.
[YOUR EMAIL AND PHONE NUMBER]