The Emergence Of Customized Customer Ar Strategies

Many advanced accounts receivable (AR) automation tools have started offering features that allow you to create customized customer strategies based on invoice aging or total outstanding amounts and so on. These features typically include schedulers for sending payment reminders at specific intervals and notification systems to alert stakeholders based on certain triggers. Here are some details on these capabilities:

EXAMPLES OF CUSTOMIZED CUSTOMER STRATEGIES:

1. Segmentation and Targeting:

  • Invoice Aging Analysis: Segment customers based on how long their invoices have been outstanding (e.g., 30 days, 60 days, 90 days).
  • Outstanding Amounts: Classify customers by the total outstanding balance to prioritize high value accounts.

2. Automated Reminders and Communications:

  • Scheduled Reminders: Set up automated reminders that are sent at predetermined intervals (e.g., 7 days before due date, on the due date, 7 days after due date).
  • Customized Messaging: Tailor the content of reminders based on customer segment or the aging of the invoice.

3. Escalation Protocols:

  • Trigger based Notifications: Configure the system to notify internal stakeholders (e.g., AR team, sales managers) when certain conditions are met, such as an invoice being overdue by a specific number of days or exceeding a particular amount.
  • Escalation Paths: Define escalation paths for handling overdue invoices, which might include additional reminder emails, phone calls, or involvement of collection agencies.

Customer Portals and Self-service Options:

  • Access to Account Details: Allow customers to view their outstanding invoices, payment history, and due dates through a self-service portal.
  • Self-scheduling Payments: Enable customers to schedule payments or set up payment plans directly within the portal.

Now Imagine a company uses AR automation software to manage its receivables. Here's how it might implement customer strategies by choosing the right automation tools:

1. Segmentation:

  • 3060 Days: Customers with invoices outstanding for 3060 days receive weekly email reminders.
  • 6090 Days: Customers with invoices outstanding for 6090 days receive biweekly email reminders and a phone call from the AR team.
  • 90+ Days: Customers with invoices outstanding for more than 90 days trigger an escalation notification to the sales manager and receive a final notice.

2. Reminder Schedule:

  • 7 Days Before Due Date: Send a friendly reminder email.
  • On Due Date: Send an email reminding that the payment is due today.
  • 7 Days After Due Date: Send a follow up email with a more urgent tone.
  • 30 Days After Due Date: Trigger a notification to the AR manager and escalate to the collections team if necessary.

3. Stakeholder Notifications:

  • Overdue by 60 Days: Notify the AR team for immediate action.
  • High Value Invoices (> Rs. 1000000) Overdue by 30 Days: Notify the finance director and account manager for strategic intervention.

By leveraging these features, companies can create effective AR management strategies that improve cash flow, reduce overdue payments, and maintain positive customer relationships.

If the above scenarios seem familiar and they really trouble your AR Teams, you need AR Automation to transform your AR Management Process. You can connect with us to see how an AR Automation Software, such as Inebura can help transform your entire AR Process by making it more productive and efficient. You can visit our website www.inebura.com or write to sandeep@inebura.com to book a demo.

ABOUT INEBURA:

Inebura, a cutting-edge SaaS platform to manage your Accounts Receivables, helps you stay on top of your collections process, ensures consistent cash flow and lowers bad debts. It comes API ready, SFTP-ready and also comes pre-loaded with multiple customizable dashboards, innumerable functional modules, and customizable templatized AR inputs. Further, it also has an Email-integrated Dispute Tracker Module, Customized Screens for Customers, Pre-loaded Schedulers, WhatsApp & Email Templates, and One-click Bulk Reconciliation of Invoices. It can seamlessly integrate with your existing ERP and easily help you take complete control of your receivables, lower the cost of funds, ensure a healthy working capital situation and much more.

Inebura comes from the pioneers of B2B AR Management in India – TanServ Business Process Pvt. Ltd. – and is a result of their 12+ years of experience in managing AR for many Fortune 500 companies.

Author

Sudarshan Banerjee

Inebura , Head of Product & GTM

Sudarshan Banerjee is a Product, Process and Automation professional. His areas of interest include Sales Force Automation Tools, Sales Process Construction, Data Science, Data Analytics, Statutory Audit and Compliance, Project Management and Change Management.

He has over 19+ years of experience in Business Development, Sales, Process Planning, Business Strategy and Product Development spanning across various domains namely ITeS, FMCG,Financial Services, Travel& E-com.

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