Effective Overdue Payment Reminder for Purchasing Solutions

Overdue payment reminder for Purchasing

sixty percent of people are anxious about their bills sure that statistic is from a personal perspective yet it's safe to say that the same feeling carries over to the business world as well i can't imagine that those people who feel nervous about their personal bills would have a different feeling about their businesses finances in other words the inevitable overdue payment is something you should prepare for as a business owner what's most important though isn't what you do to prevent overdue account balances it's how you handle them after they've reached this point you should have a process in place that automatically kicks in as soon as one of your accounts becomes outstanding every effort you make prior to giving up on collecting for your delinquent accounts and outsourcing to a collections agency has a massive impact on your revenue yet you can't just keep sending the same bill to a delinquent account for months expecting to get payment instead you'll have to take a different approach entirely you'll have to send your payment reminders through multiple channels one of the most effective modern channels to utilize is email if you choose email the question then becomes how often should you send payment reminders using this channel of communication hi everyone i'm matt from etactics and today i'm going to explain the perfect time to send payment reminder emails before we get started make sure you subscribe to our youtube channel by clicking the button below while you're down there hit that alloy bell icon next to it as well when we post new helpful content you get notified [Music] over one quarter of consumers want to receive their bills via email yet there are different rules associated with sending emails as opposed to physical mail the reality is that one in six emails sent get blocked by the recipient and marked as spam the email world is user driven recipients decide the fate of what happens to your messages if enough users continue to report the emails coming from your domain as spam you'll see less message retention over time even worse though your domain could end up on blacklists where none of your messages will ever go through to your recipients the point i'm trying to make is that if you continue to send emails every week trying to collect on a delinquent account they're going to end up reporting you as a spammer now i'm not trying to dismay you into incorporating email into your payment reminder process i'm simply pointing out that the strategy and frequency you use to send your emails should look a little bit different than with physical mail so what's the perfect time to send payment reminder emails to your outstanding balances i wouldn't send more than five reminder emails over the course of two months to be more specific send your payment reminder emails one week before the due date on the day the payment is due shortly after the payment is due one month overdue and two months overdue that's only five total emails over the course of 60 days that's not only plenty of time for your outstanding clients to pay you and receive reminders about the same in a way that doesn't come off as spammy the next logical question to ask about is what the perfect format looks like for a payment reminder email i'll go over that in more detail in a separate video but in the meantime though understand that the ideal email copy is between 50 and 125 words keeping within that sweet spot will give you a 50 response rate 35 of people admit to missing a bill because they forget about it why your clients forgot about the balance that they owe you isn't as important as understanding that you'll need to remind them to pay you yet you can't call it a win if you're only sending your payment reminders through one channel you need to incorporate multiple channels in order to ensure that you're putting as much effort as possible into decreasing your day's sales outstanding or dso email has been around as a channel of communication for over 20 years now and it continues to prove itself as one of the most effective channels of communication for businesses to utilize when trying to reach out to their customers but you don't want to overdo it and send those outstanding balances that you have a payment reminder email every day or every week until they paid you that's a one-way ticket to being marked as spam and getting blacklisted use the frequency i detailed in this video earlier to guide your efforts if you'd like to learn more about payment reminder emails reach out to me tactics 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