Mark Harrison, Founder & CEO, Callisto Grand
Sam Dhingra, Director Solution Engineering, HighRadius
Buying and Implementing Technology for Treasury Professionals
Most mid-sized businesses take a reactive approach towards customer relationships, in the sense that if it is not broken, they do not feel the need to fix it. Most of the time, they view periodic calls with the concerned customer as a failure to an agreement.
However, these businesses are losing out on a chance to differentiate themselves as a customer-centric organization. Customer satisfaction is key to the success of a business. A company that can periodically nourish and retain customers, without spending too much time with them, can be viewed as ever-growing.
But how can one ensure this periodic nourishment is followed through? Read ahead.
A customer health check or account health scoring is a periodic act followed by businesses to keep a note of how their customers are doing. This is based on a series of questions or data points. These questions must have historically helped customers and enable them to feel valued by the organization. In other words, it’s a metric that says if a customer wants to renew or discontinue their partnership with the organization.
Health checks are vital. This helps businesses determine their importance and relevance in the minds of their customers. For any customer success team, customer experience is paramount. Very much akin to a lead scoring strategy, health checks provide thorough insights if the customer is satisfied enough to be retained for years to come.
There’s no limit to the number of customers a mid-sized business is dealing with. But there could be a paucity of periodic health checks, which leads the customer to feel that they are not cared for. In short, they choose someone else to fulfill their requirements. To put it logically, customer retention is directly related to customer satisfaction.
Customer retention is partially or almost entirely connected with customer health checks. The more strategic an organization is in carrying out health checks with the customer, the more likely it is that the customer will stay associated with the company for years to come.
In most mid-sized businesses in the USA, account checks are never done periodically. But when it does happen, it’s done manually over phone calls or in the form of email correspondence.
Since this is carried out manually, there are many limitations:
Mid-sized businesses can automate redundant manual systems. An integrated system would help businesses to reach out to all the customers. Their health data would now be investigated periodically, without the issue of data inconsistency.
In many successful businesses, there’s a set of industry-approved best practices that are followed to categorically improve customer health checks. Bear in mind that the number of customers is ever-increasing.
Nonetheless, these few points would help any mid-sized businesses provide value for money for any number of customers. Not only for customers but also for analysts, where their work is much more streamlined. Here are some pointers to remember:
Employees want their workdays to be streamlined. From the office of the CFO, it’s highly recommended that a standardized worklist for every employee is initiated. With the help of an automated system, CFOs can implement standardized rules. After which, the system automatically populates the employee’s system with the relevant customer contact information and customer health details. This increases their resourcefulness and allows them to reach the customers without much hassle. Such a measure would increase the number of delinquent customer reviews.
The evolution of customer health reviews has been long and arduous. Since in most organizations a single model for periodic review is followed. For CFOs to do accurate cash forecasting, it’s necessary to have at least two forecasting models for periodic reviews. This makes sense, where new customers are properly segregated from the old customers.
Automated software will help properly strike a balance between high-touch strategic customers and no-touch self-service users. With two models in place, there will be high accuracy in cash forecasting, through better and punctual health reviews. With multiple models in place, the channels of inquiry become much more potent and communication with customers remains consistent.
Questions can sway high-valued customers into being long-term partners or short-term customers. Here are some elements that employees and CFOs can include in their periodic customer review assessment:
The number of questions in a periodic review is purely subjective. In the longer run, businesses should focus on applications that can significantly automate the review process. Marginally for the top 100 customers of any mid-sized business, a manual periodic review is essential. With the right set of tools, one can then reach out to the rest of the customer base, to shorten the review cycle.
Analytics can help mid-sized businesses mitigate further risks with their delinquent customers. An automated dashboard can give personnel a high-level overview of all their customers that require periodic reviews. With detailed reports, employees can improve and properly handle any risky customers.
In the absence of a proactive approach to managing important customers, mid-sized businesses may be at the risk of being left behind.
With RadiusOne AR Suite, it will be possible for any mid-sized business to automatically create a prioritized worklist and generate detailed reports on customers. Employees and analysts would then proactively approach customer reviews and follow-ups without worrying about data integrity. Empower your company now!
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