A study by McKinsey found that 70% collections calls go to customers who would have paid anyway, a monumental waste of time given that the teams are already stretched too thin. If we add the time lost in composing letters, finding customer details and adding relevant attachments there’s a lot of opportunity to improve collections operations.
A study of 200+ collections teams including those at Ferrero, Marketo and FleetPride revealed that the teams there predominantly use 11 collection follow-up letters/types and have been able to double productivity of the collections team. We have compiled these letter templates in a handy ebook.
Key takeaways include:
- Collections follow-up and strategies based on invoice age, payment behavior and account size
- Email templates for proactive reminders and early payment discounts
- Strategies for sending out escalations or suspension of credit for past-due accounts
- Follow-up plan for large and profitable accounts to ensure high customer satisfaction