Create an Outstanding Payment Reminder Letter Format for Marketing

Outstanding payment reminder letter format for Marketing

the average day sales outstanding across the globe is soon to be 27 days think about how long that is that's almost a month before organizations get paid from clients who owe them money i already mentioned that statistic in a previous video where i explained the importance of dunning letters and if you haven't watched it yet you should only after you've watched this one the biggest problem that comes with dunning letters though is writing effective ones hi everyone i'm matt from etactics and today i'm going to explain how to write a dunning letter that gets you paid before we get started though make sure you subscribe to our youtube channel by clicking the button below while you're down there hit the alert bell icon next well so when we post new helpful content you get notified [Music] sending a dunning letter isn't overly difficult the hardest part about it is coming up with an effective verbiage that not only tells the recipients why you're sending them a letter in the first place but also prompts their action at this point you've already spent a lot of time and money trying to collect on your overdue balances in other words you want to make sure that whatever you send them in these last ditch attempts prompts payment before you started to even think about what you're going to include in your dunning letters you need to figure out the right medium now every medium is effective in different ways email is very popular to use but it only has an average click rate of only 2.45 percent that's low the success of donning letter emails you send depends on a mixture of what you include in your message and the demographic of the individuals you're sending to now different generations prefer different means of communication if you're sending emails maybe it's more effective to millennials whereas baby boomers might prefer actual physical mail in a letter format the meaning that you choose is extremely important now that you've picked a few mediums through which you'll send your dunning letters through it's still not time to start thinking about what you're actually going to conclude within your dunning letters instead you need to figure out what it's going to look like regardless of which type of communication you choose it has to catch the attention of your recipients the fact of the matter is that we're all flooded with business communications on a daily basis we drive to work in the morning and see billboards scattered across the highway here radio hosts recommend that we purchase something during their shows and receive push notifications that block our screens while we're trying to navigate on the road it's estimated that we see between 6 000 and 10 000 advertisements every single day your delinquent accounts aren't immune to that statistic the point i'm trying to make is that the dining letters you send aren't that much more different from an advertisement think about it of course the purpose of an advertisement is to entice someone into purchasing a product for a dunning letter someone has already purchased something from you but they haven't paid finally you should focus on tone even though it's frustrating to continue to pursue collecting on outstanding balances that doesn't mean that it should bleed into the content that they send you commanding that your clients with overdue balances pay you as soon as possible isn't going to work doing so will only make you come off like a 1920s loan shark or gangster which is arguably less effective so what tones should you use the best practice is to change the tone over time the first series of letters that you send should focus on cooperation and use polite language if the account continues to age while it's overdue the tone should shift toward one that's more straightforward the reality is that when an account reaches 120 days overdue you're most likely headed toward not pursuing further business with that customer at all thus the last few letters that you send most likely only contain information about the account amount due and original due date stunning letters are an essential part of every business's collection process yet if you don't write effective ones to begin with you might as well not even have a collection process in the first place however by focusing on the areas i've discussed in this video you're one step closer to closing your outstanding balances for more information about dunning letters and sending them to your clients and collecting on them reach out to etactics and you already made this far into the video so you might as well like it share it and comment below what are you waiting for subscribe to our youtube channel