In the order to cash cycle, the cash part is crucial for business success and longevity. But sometimes getting that cash can prove difficult. This is where a best practice accounts receivable process comes into play, and some well-timed, well-written email reminders. Read on to learn how we set our AR Specialists up for success and get some free accounts receivable email reminder templates they use to send invoice reminders that work.
Setting yourself up for success
Before you actually send any reminders, there are actions you can take to increase your chances of them delivering the result you want. Getting paid.
- Use a familiar sender name: We’ve all received emails from people and organisations we don’t know. Sending reminders from your name or your company name will improve your email open rate. Especially if it’s the name your customers are used to receiving emails from.
- Don’t be afraid to get personal: Personalising your overdue invoice reminder emails with the name and/or company name of your recipient can improve engagement with the email. This is especially true if you have a good relationship with whoever receives your reminders.
- Include a call to action: Whether you’re making a phone call or sending an email, the goal is to get paid. Or, at the very least a promise to pay. Be clear about the action you want, whether that’s confirming that payment has already been made, paying the full amount immediately or contacting you to agree a payment plan. An example of this is: “Please reply to this email and advise when you will make payment so we can update our records.”
- Timing: Be the squeaky wheel. This is important in raising your chances of getting paid. If your customer has gone silent, then appearing in their inbox regularly as soon as the invoice is overdue is key. You want to be at the top of their list to get paid, and if you’re the one that’s bugging them (in the nicest possible way) your chances are much better than another business that’s on that same list but has only chased the invoice once.
Get into the right flow
Timing is key when it comes to a workflow that gets results. Prompting your customer about their account at well-timed intervals goes a long way to getting paid faster. So, before sending any accounts receivable email reminders, make sure you’ve got a plan around when they’ll be sent and the purpose of each.
A basic reminder workflow can be easily timed at these intervals:
- 2 days before due date
- 7 days after due date
- 14 days after due date
- 21 days after due date
To get more sophisticated or for customer segments which need slightly different communications break them out into separate workflows. You can add in SMS reminders, calls, switch between plain text and html emails and tweak timings to suit.
If your accounts receivable process could be refreshed, we’ve got a whole guide dedicated to creating your perfect AR process. Download that here.
Crafting emails fit for purpose
Once you’ve got your timing planned, it’s on to your accounts receivable email reminders. Key to maintaining strong customer relationships while pushing for payment, is ensuring your tone matches the urgency of your request. For the email being sent before the due date, you’ll want to keep things light and friendly. At 21 days past due, your tone should have shifted to firm and urgent.
Download the full guide (no email required) with four key accounts receivable email reminder templates for the basic workflow above. Bonus, we’ve included a template for the all important ‘thanks for paying’ email too.
CreditorWatch Collect helps businesses of all sizes worldwide automate their AR from automated reminder workflows through to integrated payment portals and one-click debt collection. If you’re looking to smooth your cashflow, save time chasing unpaid accounts and generally make your life easier we’d love to have a chat.