Step into the customer's shoes

Despite the fact that the credit manager does not choose who his customers are, in case of payment arrears, a customer-friendly process is expected to still receive payment. But how far do you go in this as an organization? Do you agree to everything the customer asks in advance or do you limit this freedom with certain business rules so that the customer does not take a walk with you. In recent years, the attitude of organizations has changed drastically on this point. Strict measures have made way for a lenient, socially responsible attitude. This attitude alone is not going to help an organization be customer-friendly and successful. To do this, you also have to put yourself in the customer's shoes.

Customer communication

Customers with payment arrears expect customized information tailored to their financial situation. But the use of different communication channels also plays a major role here. Every customer has their own preferred channel, consciously and unconsciously. The customer consciously once chose to receive communication from an organization on a certain channel. In practice, however, it may appear that this customer does not respond very well to this channel at all. In fact, after a payment request, the customer (unconsciously) pays via an alternative channel. A preferred channel may be leading, so alternative channels should certainly not be missing. Organizations must take this into account when setting up their payment process and constantly look for the right communication channel. Of course, these communication channels must be seamlessly integrated so that the customer experiences an ultimate payment journey.

If the credit manager was a marketer, he would know that graphical elements, an accessible call to action and clarity have more influence on conversion.

Call to action

Once all communication channels have been set up, you also want to get the customer to pay. This call to action should therefore guide the payment request, but not every customer responds the same. The message of the payment request can determine whether a customer feels called to give the organization their money. Organizations therefore regularly struggle about 'you' or 'you', the right language level and the presence of all legal texts. If the credit manager was a marketer, he would know that graphical elements, an accessible call to action and clarity have more influence on conversion. The customer is no longer sensitive to an old-fashioned and unclear payment request. It only takes a few seconds to review the payment request; there is still more to do. If it takes too long to review the payment request, you can forget about payment for now.

Timing

The customer will be so happy that the payment request comes in via the right channel and also with a clear call to action. Wouldn't it be great to also let the customer receive this payment request at the right time? Just when the customer grabs his mobile phone to do the finances and then receives a payment request? This is not only very customer-friendly, it will significantly increase the chance of a payment. The customer must now have a very good reason not to make the payment immediately with a few clicks.

Payment options

The last step in the payment journey is to make the payment. Where we are spoiled with iDEAL in the Netherlands, there are few payment options that come close to this abroad. This is partly because online payment is still limited in many European countries. Despite the growth of online payments, many Germans, for example, still prefer Barzahlen: customers receive a (digital) payment form from an organization, go to an affiliated store and pay the amount there. The store then sends a payment confirmation to the organization. A process that is unthinkable in the Netherlands. Payment options with a credit card or PayPal are common in other countries and PSD2 has now also found a place in this landscape. If you want to make the payment journey as easy as possible, as an organization, you will have to offer a healthy mix of payment options, based on customer needs, of course.

Customer shoes

In an era where customer expectations are higher than ever, organizations need to adapt their communication strategies. Multi-channel communication is no longer a luxury, but a necessity. A good text for a payment request has made way for an accessible call to action, which is immediately clear to the customer. The moment the payment request is sent, together with the payment options, should entice the customer to make the payment. Organizations can only organize this properly if they are willing to step into the customer's shoes and look for that ideal customer. That is not an easy quest. Marketers have been working on it for years.

Organizations that continuously analyze their customer data can put themselves in the customer's shoes, discover new needs and identify risks in time.

Technology as a tool

A good tool for finding the ideal customer is technology. Technological developments have made huge leaps in recent years. This has not only ensured that manual, repetitive tasks have disappeared, but also that the previously mentioned measures are easy to implement. Organizations that continuously analyze their customer data can put themselves in the customer's shoes, discover new needs and identify risks in time. Note: While the benefits of technology are endless, it's critical to handle customer data securely. Due to its sensitive nature, organizations must take strict security measures to protect them. But if you have all that in order, that ideal customer is a long way within reach.

Source: Dennis Faas - Article Digitization - The Credit Manager 2 - 2023