Happy Customers Pay Their Bills

I was taught a long time ago that happy customers pay their bills on time. This is of course not always true but in my experience it is usually the case.

It’s always interesting to me when a company whose receivables have always been in good shape starts to develop a problem and the first reaction is to tighten up on collections or often they will even hire addition collections staff or worse yet farm their receivables out to an outside collection company. The first thing you should do if your company’s receivables start to slip is to look at your customer service measures. What has changed in the quality of your service delivery? If you are going to invest money in this issue, the first place to invest it is in improving your performance.

Sure there will always be some customers who are hard to collect from, but remember the condition of your receivables is a good measure of the satisfaction level of your customers.