What is the most important communication you have with your customers?
Your Final Notice
Most of what I write about is attributed to communicating with your customer. Beginning with upfront policies that communicates with your customers about their financial obligations with you, to the use of Transactional Analysis as a customer service approach to getting paid and keeping the customer. Now some businesses will put a sticker or use a stamp that says Final Notice. This is not an effective way to communicate the importance of them paying their account. Your Final Notice is usually meant to be the last communication you will have with that customer regarding what they owe you. At this point you have exhausted all of your efforts in your receivables department to collect the debt. You are telling them that you are no longer going to work with them to resolve the matter and that you will be forwarding the account to your collection agency. Basically you are saying that your future business relationship is over.
It is meant to get your customer, patient, student, business associate, to take action and comply with their agreement to pay you. How you write this letter could be the difference of them ignoring their obligation to you, or taking action to resolve the balance due and staying a customer. What does it cost you in future revenue to lose that customer. Looking at the seriousness involved in ending that relationship will sober you to the reality of the importance of getting them to pay you with that final contact you are making with them. If you can reduce the number of accounts you have to send to collections by just 10%, not only will you increase your bottom line by collecting that money, you will also keep that customer and any referrals they may give you which can equate to thousands of dollars in future revenues for your business. Keep these customers through your last ditch effort, Your Final Notice.
It is best to begin your letter with a recap of the original indebtedness and then work into a call for immediate action while stressing the urgency of completing the action. It is best to customize each letter and specify the dates of each transaction that equates to the balance due.
It has been brought to my attention that you have failed to comply with our former requests for payment. On January 5, 2012 you came to us for (type of service or product). This (type of service or product) created a balance due in the amount or $950.00. It is very important that we hear from you regarding your intensions for payment on this account. We will hold any action for 10 days to allow you the opportunity to make arrangements with our office for payment (state the actual date that is 10 days from the date of the letter). Please contact us no later than July 25, 2013.
Pursuant to the credit policies agreement you signed, we will be adding on 33% to the balance to cover the cost of collections (Increase Your Net Return From Collections) once we place your account with Professional Recovery Personnel.
Please contact the undersigned immediately to make arrangements for payment.
Always sign your final notice letting the customer know it is not just a computer generated letter and put your direct phone number under your signature.
By doing everything in your power to create a professional customized Final Notice to your customers, you are communicating the importance that they respond immediately to resolve their account. This will decrease the number of accounts that you have to place for collections.
The last part to this equation is that you then place the account shortly after that deadline you gave your customer. This keeps the flow of communication going as we will then send out the first notice that advises your customer that the account has been placed for collections and that they will be dealing with our office to resolve the account.
For more information about PRP, download the PRP Information PDF.