Charging customers for products and services should be simple and straightforward but, unfortunately, this generally isn’t the case. As nice as it would be for all customers and vendors to pay bills in a timely manner and in full, many do not, leaving you with outstanding accounts in place of liquid cash.
Managing collections can often be a challenging task, especially when it comes to staying on top of a myriad of consumers with balances due. Many companies put accounts receivables responsibilities on the back burner, preferring to emphasize sales rather than outstanding or delinquent accounts. As such, a third party may be appointed to handle the dirty work, leading to a disconnect between customers with unpaid debts and the team in charge of collections.
Despite the utility in working with an outsourced team to collect outstanding accounts, some teams may require additional costs that exceed what an in-house workforce is able to accomplish, especially if your practices aren’t in sync with your chosen team. These methods often take the focus off of customer service in favor of rapid collections, prioritizing end results over customer service practices.
Balancing Insourcing and Outsourcing
When you’re looking for a better way to approach collections while saving your company money and nurturing relationships, it’s time to rightsource your operations. Simple outsourcing isn’t always enough; instead, you need to take a customized, dedicated approach to the collections process. By balancing internal and external methods, you can find a better solution, saving your company money while generating effective results.
Targeted Approach to Collection
Collecting the amounts owed to you is an incredibly important job, which is why it’s vital for you to maintain control. Rather than letting a third party implement their own operating procedures, a first party team can work with you, designing a personalized process to secure payment quickly and effectively that makes sense with your credit policies.
This process allows outsourced agents to contact customers as representatives of your company, not as a third party collections agency, strengthening customer bonds while soliciting the desired results. Through the use of a unique account manager and collections team dedicated to your operations, you have the affordable infrastructure necessary to maintain personal relationships with your customers and vendors. A perfect balance between in-house and outsourced efforts, the first party approach keeps communication channels open while gently prompting timely payments.
The Right Choice for Your Business
When you are struggling to find a connection between unpaid accounts and the persuasive communications required to solicit payment, a new approach can be the difference between success and failure. A first party collection service is able to offer numerous benefits, including:
- Customized practices to meet internal protocols
- Dedicated team meeting corporate standards
- Reduction in costs associated with obtaining payment
- Decrease in delinquent accounts
- Improved customer retention rates and satisfaction
- Affordable infrastructure able to meet company demands
- Established practices for handling unresolved accounts
Chasing down your hard-earned cash isn’t a job anyone enjoys, but it’s a critical part of a finely tuned business cycle. The right management style is essential your ongoing success, and with rightsourcing, it’s possible to streamline your operations while still achieving positive results. By placing an outsourced team behind the front lines, your A/R team will see better, more consistent results while still putting your hard-won customers first.