COVID-19 has underscored the importance of digital payments. Embracing digital payments and optimizing the back office is now the clarion call for many businesses. In a survey done by Visa, nearly 72% of the small and micro-businesses surveyed reported that they expect their customers to continue to prefer digital payments in the future.
Customer attrition refers to customers severing relations with a business. These customers do not associate with or purchase from a company after a given period. Customer retention, on the other hand, helps track how many customers are loyal and make repeat purchases.
Studies on customer attrition show that positive relationships with customers lead to customer commitment and retention, while poor customer practices result in higher customer attrition rates and eventually lower working capital.
Frauds have been increasing at a rampant rate in the AR space. There has been a 42% increase in customer fraud and cybercrimes in the financial sector in the past 12 months.
In 2018, check fraud measured for 47 percent of industry losses ($1.3 billion), according to the American Bankers Association’s 2019 Deposit Account Fraud Survey.
In order to configure and revamp any business’s payment capabilities, here are some salient features/best practices that companies should look at while choosing the right plug-in for AR.
Avoiding collection bottlenecks would help organizations optimize cash flows. Some of the bottlenecks in the collections process include:
The analysts’ job is to negotiate maximum payments or promises of payment from customers. But more often than not, they are stuck with handling reconciliations.
Reconciliation is cumbersome for many businesses. For example, downloading payment receipts from banks in the right format and then uploading them in the standardized format to customer portals is tedious.
Traditional reconciliation processes were always plagued by inaccuracies and errors. As the data needs to be in sync and dynamically updated between many operations, there could be mistakes in entries in a manual process.
While you may think that setting up an effective reconciliation process could resolve almost all bottlenecks, your job gets done only when the reconciled data could be safely archived and retrieved when needed. This gives rise to new hurdles like data storage security, rising storage costs, and difficulty locating data sets with a manual retrieval process.
Advanced security and compliance with PCI DSS-certified payment processors are a necessity. With an advanced plug-in for the AR, you can efficiently and securely store and use customer payment data.
A single source of the repository is a centralized location where analysts can create and track payment commitments, tasks, notes, and reminders. What happens when there is a lack of an all-in-one repository?
Cash reconciliation challenges:
With scattered correspondence data, the finance team may have to work on data that is not updated and be unable to identify trends from the past data.
RadiusOne AR apps meet AR teams’ needs and aim to automate labor-intensive processes, maximize working capital, and facilitate faster cash conversion. Let’s look at some of its benefits and features.
Reduced payment processing time
Digital payments are processed faster. According to Deloitte’s PayTech Revolution report, digital payments are more than 50% faster to process than traditional payment processing. CXOs can expect quicker payment processing, which would instantly translate to more authority over the company’s receivables.
Diminished administration expenses
Digital payments significantly reduce reconciliation fees and effort. The total cost-efficiency gains could go as high as 500%. All this cost reduction naturally reflects in improved EBITDA.
Improved customer loyalty
With 86% of buyers willing to pay more for a great customer experience, CFOs are now revamping their age-old AR management practices to make it more user-friendly. With RadiusOne, organizations have experienced meaningful customer interactions through customer self-service options where users select and pay invoices from anywhere, anytime.
With best-in-class payment technology and PCI-DSS certification, companies can unlock better compliance control for digital payment processing. It also enables two-factor authentication, role-level access, and fund-on-file tokenization.
With ‘zero-touch processing’, companies can deliver invoices to customers with payment links. With the advanced OCR engine, remittance information is collected and matched to organizational codes directly, with minimal manual intervention.
HighRadius RadiusOne AR Suite provides the complete eInvoicing solution designed to automate your invoice delivery and empower customers with a self-service portal to manage, track and pay invoices. It is quick to deploy and ready to integrate with ERPs like Oracle NetSuite, Sage Intacct, Quickbooks, and scales to meet the needs of your order-to-cash process.
Lightning-fast Remote Deployment | Minimal IT Dependency
Prepackaged Modules with Industry-Specific Best Practices.