Thoughts from our CEO, Meg Scotty, on the question of sending billing statements:
I am fortunate to have worked with small entrepreneurial companies as well as large corporations. And the trend is the same for all types of operations: Companies train their customers in how to behave.
Why do customers wait for statement to pay? Because they can.
Why are customers late payers? Because we allow it.
I personally am not a fan of sending statements, and if I consider all the times I throw statements in the trash, I think most end up there. However, it’s still important to make sure your system has the capacity to produce them and send them – either individually, or in bulk.
Only the internal team of a company can determine if it is cost effective or not to send statements. Part of the decision process should be making certain that “because we always have sent them” is not the reason to send them. And really doing an analysis of what the return really is.
There are times that “turning off” the function of sending statements is more expensive than sending them. In which case, it becomes a long-term strategy for getting rid of them.
I do believe in electronic distribution in lieu of USPS if your database allows it.
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