Being specific and tailored in your approach to collecting customer payments typically leads to faster payments. When it comes to improving your accounts receivables process and getting paid faster, treating all your customers in the same way will not yield the best results.
Studies indicate that by segmenting customers based on payment behavior and customising follow-up strategies, you can significantly reduce collection times.
Yet, it's challenging to comprehend your customers' payment behavior, as it involves evaluating their present and past payment patterns and predicting their future payment behavior. This can be a daunting task for your already-busy finance team.
Now, you can use Payer ratings in Chaser to get an instant insight into your customers' payment behavior. Using machine learning, Payer ratings analyse your customers’ payment history to identify whether a customer is a good, bad, or average payer.
With Payer ratings, you can easily understand your customers' payment behavior, which helps you customise your collections approach and identify areas for improvement in your accounts receivable management and follow-up process.
Get instant insight into your customers' payment behavior with Payer ratings in Chaser. Using machine learning, Payer ratings analyse payment history to identify good, bad, or average payers.
To see full details on the benefits of Payer ratings, download the fact sheet here. If you use Chaser, view the Help Centre article on Payer ratings to start using Payer ratings to understand your customers’ behaviour and improve your receivables process today.
The benefits of using Payer ratings
At a glance see which customers are most likely to pay you late, and who you should focus on following up with first. Payer ratings can help you focus your follow-up efforts on those customers that are more likely to delay payments, ensuring that you prioritise your collections approach effectively.
Reduce non-payment risks
Assessing the payment behavior of potential and current customers is crucial in reducing non-payment risks and managing accounts receivable effectively. With Chaser's Payer ratings, you can get an insight into the payment patterns of your customers, helping you identify those who are reliable payers and those who may pose a non-payment risk, and can avoid extending credit or doing future business with them.
Managing accounts receivable can be a time-consuming and challenging process, requiring regular monitoring and follow-up to ensure timely payments. However, with Chaser's Payer ratings, you can save time and improve your efficiency by instantly identifying problem accounts without the need for additional reports and tools.
Improve customer experience
Maintaining a positive relationship with customers is key to providing an excellent customer experience. However, excessive follow-up with good payers can be annoying and may negatively impact your customer relationships. With Chaser's Payer ratings, you can avoid bombarding good payers with unnecessary additional follow-ups, ensuring that you provide a positive customer experience while still managing accounts receivable effectively.
Optimise your follow-up approach
Following up with customers is an essential part of managing accounts receivable, but using the same follow-up approach for all customers can be ineffective and time-consuming. With Chaser's Payer ratings, you can optimise your follow-up approach by easily grouping customers based on their payment behavior and tailoring your approach accordingly.
Improve decision making
Effective decision-making is critical to the success of any business, and having accurate insights into your customers' payment behavior can help inform those decisions. With Chaser's Payer ratings, you can improve your decision-making by getting clear insights into your payer's behavior when adjusting their credit limits or deciding whether to use debt collections.
How to use Payer ratings in your accounts receivables process
Segment customers and tailor your follow-up approach
Easily tailor your follow up approach based on customer payment behavior. Ensure you are persistent and proactive when chasing payments from bad payers, and avoid bombarding good payers with too many reminders.
Customers can be grouped based on their Payer rating as good, bad, or average, then entered into appropriate chasing schedules. Furthermore, bad payers can quickly be identified to help decide which customers to call first, or which accounts to hand to debt collections.
Assess and adjust credit limits
Are you extending large amounts of credit to a customer who might not pay you back? Offering your customer the option of lines of credit as a payment method is a great way of opening up new business opportunities and increasing sales from existing customers. But, granting too much credit to customers that are unable or unwilling to pay on time can be damaging to your business’s cash flow.
Customers who are likely to pay late or have poor payment habits can easily be identified with their bad Payer rating, and credit limits can be reduced accordingly. Additionally, when customer accounts move into a good Payer rating, this is a quick indication that their credit limit should be revisited and could be increased.
Track your accounts receivable team’s progress
How many good payers do you have? Are your team effectively tuning bad payers into good payers? Understand how effective your receivables process is by using Payer ratings.
By seeing if bad payers are decreasing, increasing, or staying the same, you can track the performance of your accounts receivables process. You will be able to identify areas of improvement and make data-driven decisions about how to improve your accounts receivable process and results.
Payer ratings in Chaser
Payer ratings mean you can understand your customer payment behavior instantly. This will help you and your finance team tailor your collections approach and identify areas where you can improve your accounts receivable management and follow-up process. To find out more about using Chaser and Payer ratings, download the Payer ratings fact sheet. If your organisation already uses Chaser, visit the Payer rating Help Centre article to get started with Payer ratings today.