03.09.10
PaymentHub Direct Debit Case Study – Security and Monitoring Services
PaymentHub has recently partnered with several security and monitoring companies to help them manage their cash flow. The entire process has been very enlightening.
Like most of our clients, these companies have an ongoing, service based relationship with their clients. They actively monitor the security alarms in houses and commercial properties and where required, run patrols and respond to these alarms. They also invoice their clients every month .
Over the last 12 months, the new clients we have assisted have carried between 50-100k worth of debtors past the due date of their invoices… sometimes until the next month’s billing cycle. Our brief was simple, implement a system which would reduce the number outstanding debtors. Below are the steps we took to help our client:
- We sent a letter to our client’s customers informing them that we were going to implement a new billing system to reduce the company’s administration (and thus keep their monitoring fees low)
- We also sent a direct debit authority so we could begin billing the following month (none of our clients mandated direct debit as a payment option – they left it up to their clients to decide how they would pay)
- We set up email reminders (and SMS reminders where suitable) totell people when they would be debited.
- We continued to send letters to those who had not yet signed up for the direct debit payment option with testimonials from others who had (generally convenience was the most common reason for people opting to switch to direct debit)
Within 3 months, we have 40% of our clients’ customers using direct debit as the preferred payment method. We have halved the overdue debtor list and now all new clients are put straight on direct debit.
This approach has allowed our clients to:
- Improve their cashflow – they now can predict with a high degree of accuracy how much money will be in their account at the end of the month
- Reduce their admin overhead – there is no more reconciliation of cheque and EFT payments. We have reduced the number of calls that need to be made chasing up outstanding payments.
- Focus on improving their own systems – the admin staff now have more time to work on streamlining other areas of the business now that a large number of payments are being taken care of.
What are you doing to improve your business? What can be automated to let you focus on providing your customer with the best service you can?
If you would like more information on PaymentHub Direct Debit and Billing – please contact us on 1300 909 339.