How to relate to your customer and decrease your business default rate

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Before discussing the main topic of this post, I will introduce myself to start creating a partnership link. Raul Santos am fascinated by success and customer engagement. Work as credit recovery analyst at Digital results, the company that develops the RD Station .

During my day, I have the opportunity to talk to many customers, exchange experiences, results and, especially, understand the difficulties that many of them have. One of them is how to decrease the default rate of my business being a small company with limited resources?

The default is present in various sectors of the economy and affects many businesses, mainly small and medium companies. According to Serasa, in 2017 there were 5.3 million of non-performing companies in Brazil, according to the National Survey of indebtedness and default Consumer (PEIC), more than 57% of Brazilian households are indebted.

Fortunately, through a good relationship with your customer and the implementation of some simple processes in your company, you can make them good paying and decrease their rate of default.

In this article we bring key learnings from the Digital results during its growth process and structure.

1. Build a collection rule

The first point to understand is that you must relate with your customers before they become delinquent. Thus, the rule collection will be its structure when, how and where to communicate with his client.

It notes that the ruler must have a beginning, middle and end, that is, it is extremely important to set a period of validity of the same. With regard to the rule, four points are essential:

  • Set how many days before the due date you will send the invoice to your customer;
  • Decide how many days in advance will receive a reminder that the due date is near;
  • After the expiration, it is necessary to define when will be your first contact with the delinquent;
  • Establish a maximum limit up to which your customer can stay default (it is important to define it, even if a customer exceeds their goal) .

The process of drawing the ruler of your business charges is essential to give the body the next steps in their relationship with their customers and achieve optimal results delinquent recovery.

Linked to the rule of charge, it is important to have a management system that shows visually with which customers you are relating and contacting.

This system need not have a high investment need not be extremely technical. An Excel spreadsheet can be a good alternative at first. When your collection area is structured, with significant demand, it may be the ideal time to invest in a CRM more complete.

2. Set the media

Structured rule collection, you need to communicate with customers and create interactions with him.

A good channel for communication is email. Through it is possible to scale, frequency and personality to your relationship.

After creating your billing rule you define which emails will be sent to your customers. For example, seven days before the invoice due date, you will send a reminder email with the attached slip.

If your customer has delayed two days later, you can send an invoice recall arrears, with the invoice payment or attachment link.

There are many options for interaction that allows you to email, but the best is that through it you can follow the opening, deliverability and click through rate that your customers have with your communication.

Remember that to keep up with all the metrics you need a good email marketing tool. The RD Station Marketing , our product shows these metrics.

In addition to email, a good option is the phone for which you can have a totally direct and personal contact. By phone, you can negotiate with your customer, align expectations and deadlines, as well as being an essential means to receive important feedback for your business.

The only point of attention is that phone calls should be just right and approach with the client must be to support it and not simply a collection. At that stage it is interesting to use a more approach soft , since many traditional companies only use telephone calls to charge an unstructured, mechanical and totally impersonal.

In addition to email and phone, there are many other options on the market, such as SMS or even the novelty of Whatsapp Business .

3. Determine the means of payment

Determine the means of payment will help both in managing but also in its customer retention rate and default.

For example, say your business is marketing a service, has a contract time (1 year) and the sale is made by credit card, anticipated 12 times.

For you, as an entrepreneur, it will be great because it will receive money in advance and will not have to worry for 12 months if your client is a possible default or not. Also, for the client, allows for flexibility of piecemeal purchase. The only point to consider is that credit card rates for the business vary between 2% and 5%.

There is also the option of the bank slip that, for many, is a good alternative, because in addition to having a cheap emission rate, ranging from 1 to 10 reais, many customers still prefer. Single point of note is that, depending on your business, customers who pay with billet tend to be delinquent than compared to credit card.

Means such as bank transfer, payment in kind or other depend on the size of your business, the way you do the record of them and how they adapt to their reality.

4. Allow your customer to be as self-sufficient as possible

As we discussed in the article, the good relationship and communication is essential for many customers are good payers, but some people actually delay their payments for oblivion, for failure at the time, among other reasons.

Of these customers when they want to make the payment, they hope to solve this quickly, without bureaucracy and without the need to contact a lot of people for that.

Thus, it is interesting to you to promote this facility to its user. Having an online communication medium in which your customer can print the ticket, make payment by credit card or other options is sorely needed. For example, today customers of RD Station Marketing can do it with a few clicks through the financial panel of the platform.

Worth bearing in mind that at times the user of your product or service will need to contact you, whether to send payment receipts, ask questions or report a technical problem. So, have a service channel, as an email (financeiro@nomedasuaempresa.com.br).

If you choose email, set an average response time. For example, within 4 working hours will give you a first response or even a solution for your customer.

5. My client paid

Congratulations! By applying all these tips you’ll probably have a good customer recovery rate. However, to have a good relationship, you need patience and commitment.

So, after your customer to pay, send an email or message to him acknowledging receipt and take the opportunity to thank him for being a customer of your company.

Simulation

After having read this article and learn some tips on how to relate to your customers and structure your collections industry, we make a simulation to put into practice the lessons.

We will draw a charge structure, an ecommerce marketing online guitar lessons, in which the full course has 12 months duration. We operate 10 days before the due date and 10 days after the due date.

default rate

If the customer pays before any of these steps to send a thank you email the next business day to confirm the effectiveness of the payment.

We know the routine and the process of recovering a defaulting client can be costly, however, when applying these tips, you will notice that, in addition to organizing your company for this activity, you will be able to structure a flow that will facilitate your day to day and mainly will create a healthy relationship with your customer.

And to keep learning about it, download our spreadsheet Introduction to Digital Marketing Automation .