June 12, 2013
A few years ago, I took charge of a business with major problems in the collection process: many customers were not paying the bills at all and even more people who opened accounts paid the bill ten to sixty days late.
What we have done in order to change the situation was to change a number of procedures. We introduced tighter credit controls and policies and interest charges meant to motivate people to pay up early. We implemented a smart series of past-due notices and we`ve made collection calls.
But to make things go smoothly we introduced a series of positive strategies. One of them was to send a hand-signed letter to thank for prompt payments to anybody who did this on time. We sent this to people who paid on time, but also to those that just responded to a past-due notice in order to motivate them even more.
The outcome can be predicted! The people who received the letter started to become better paying customers.
Rewarding people for doing the right think works very well. One Doctor I know used to offer fresh flowers to all the women patients who showed up on time for the appointments or who paid the bills I time or who sent another patient.
He told me that in just a few weeks all the patients came to the appointments in time, they all paid the bills in time and the referrals were up. He even had some guys coming to him and asking how they can get roses too!