Getting customers to pay on time is a common problem companies run into. Customers have a variety of excuses why they don’t pay their bills on time. However, there are many ways you can turn that around and eliminate the problem – without losing any customers. It mostly comes down to clearly communicating your expectations to your customers and following through on your own promises. Below are some creative ways to get your customers to pay on time.
Chasing people down for payment can be uncomfortable. Kinum, Inc. works with clients nationwide through debt collection services. Reach out today to discover how we can work for you!
Tips To Get Your Customers To Pay
Ask for Payment Upfront
Depending on the size of the required payment, you can ask for all of the payment to be paid upfront. That way, it’s done and out of the way for both parties. You could also ask for half or a third of the payment upfront so that you are guaranteed that at least some of the payment is paid ahead of time.
Follow a Payment Schedule
…and stick to it! This will “train” your customers that on a certain day of every month, they can expect an invoice from you. This will also help them to plan for it since they will learn to know that it’s coming.
Send Payment Reminders
Payment reminders can come through email, texts, or even phone calls. You can send your customer payment reminders leading up to when the invoice will be sent and until the final deadline to pay. With reminders, the customer can’t say that they forgot or were blindsided.
Institute a Late Payment Fee
Sometimes, all it takes is a simple 1.5% to 2% late charge to give customers a push to pay on time in the future. You could charge a 1.5% late fee for the first few days and continue to double it every few days or week to let customers know you take on-time payments seriously. Of course, some may continue to pay late every time, even with the fee, in which case you get a bonus every month.
Reward Customers That Pay Early/On Time
You can reward customers that pay early or on time with small discounts or gift cards. This will incentivize them to continue paying early and could encourage those who pay late to try to pay early or on time to receive rewards as well.
Make sure it’s clear verbally, through email, and in the contract what you expect from your customer. You can never be too precise in a contract, so spell out your expectations exactly. To protect your customer, make sure to state what you will deliver and your deadline as well.
Hold Onto Deliverables Until Paid
You can choose to hold onto your product or service until the customer is paid. If they haven’t paid you, although they agreed to, you are not required to deliver anything to them unless bound by contract.
Be On-Time or Early
You cannot expect your customer to pay early or on time if you are late to deliver your product or service. If you are late to deliver on your promise, then that sets an expectation that you don’t take deadlines seriously, and therefore, neither does your customer.
If All Else Fails…
At Kinum, Inc. we offer a gentle approach to debt collection that is highly successful. We serve all industries and will work with you to help you collect your money without creating a negative experience for you or the customer. Call us for assistance today at 888-471-0280 (click to call)!