It is no surprise that technology has transformed the invoicing and billing transaction process between you and your customers over the past decade. Many large corporations have acquired smaller businesses over the years and as a result a system is put in place to communicate between the newly acquired company, the parent company, and the customers. These systems are at times rushed and the complexity of the system limits the customers’ ability to perform any type of self service.
Invoices, bills and other ancillary documents sent between the supplier and the buyer requires the customer to print the document, sign the document with an attached payment, and finally send it back to the supplier; this process can take up to 20 days. The result is a drastic increase in day sales outstanding (DSO), increased cost for both parties, and the lack of transparency making hard for your customer to truly understand the documents.
So this leads us into the 3 reasons transparent communications are key for you and your customer:
- Lower disputed transactions. The complexity of these legacy systems does not allow customers to easily access their invoices; this creates a rise in disputes and higher customer service/call center costs.
- Efficiency in communications. Efficiency in communications leads to faster invoice delivery and response. Secondly, it leads to savings throughout the billing cycle by eliminating postage, print and other costly steps in the billing process.
- Customer self-management. With the evolution of the customer have come changes in the way invoices and bills are expected to be delivered. Self- management of customer communications leads to customer loyalty and higher retention rate.
While the concept of customer communications is not new, the strides that the process has taken in the past decades are hard to ignore. Today’s B2B and B2C customers expect to communicate using multiple channels at their convenience.
To see how invoicing and billing play into the larger picture of customer communications and affect multiple departments across the organization, check out this recently published white paper.