It’s important to measure the effectiveness of your collections process to identify areas that need improvement. If you have a manual collections process, you need to compare the effectiveness of your manual collections with the results that can be achieved with an automated collections process. To do this, you need to understand the underlying conditions of your manual collections process compared with an automated collections process.
Here a four underlying conditions of manual collections which you should consider.
Manual collections rely on generic email and spread sheets. With no integration it means that data is constantly being manually transcribed between emails and your ERP. Your team is spending a large portion of its day on clerical activities instead of collecting accounts receivable.
Without the integration, if you have a large number of customer contacts, it can become virtually impossible for your collections team to keep up and achieve target KPIs.
Manual collections processes don’t have automated customer communications to do follow-ups, track payment promises, and facilitate resolution of disputes.
Instead of collecting accounts receivable, your collections team will be tied up keeping manual notes; updating customer files; composing emails; and trying to facilitate dispute resolutions with personnel in other departments.
Manual collections processes place the responsibility to manage collection activities on your team. They have to know what got done, and determine what needs to be done next to achieve collections KPIs. If you have hundreds or thousands of customers, you must have visibility of the collections situation to determine priorities, so collectors know what to do next without flailing around trying to determine priorities.
Automated collections with activity management capability can provide the visibility you need.
With manual collections it’s hard to control and manage your collections team. You need the activity management capability provided by automated collections processes so you are not flying blind in the rapidly changing environment of the new normal. Activity management gives you the resources needed to figure out where you are at; what the priorities are; and how you should use your resources to achieve collections KPIs.
You can be in control of your collections process with activity management. Without it, you risk being behind the curve, reacting rather than managing your team.
Automated collections processes are more efficient and will help you achieve your collections KPIs. With automated credit and collection solutions you can increase productivity and accelerate cash flow.
Lockstep Collect, a leader in cloud-based credit and collection platforms, can help you collect cash in 4 ways:
- Cloud-based solutions
- Automated customer communications
- Customer self-service
- Collections Activity Management
Lockstep Collect is an experienced software partner that can help you maximize your collections and cash flow in the new normal.
If you would like to learn more about how you can benefit from automated credit and collection solutions, please contact Lockstep Collect at www.lockstep.io.