Radio stations seek ways to improve their days outstanding numbers, ensuring they get paid faster. When the time to pay decreases, cash flow also gets a boost. In many organizations, sending payment reminders is a cumbersome process that requires a significant amount of manual work. However, with the right electronic payments platform, you can streamline this.
Here’s how it works.
Challenges with Slow Payers and Inefficient Processes
The average time to pay in the media industry is 72 days. That’s a substantial amount of time for invoices to remain open. Slow payers, especially those who send paper checks, may not change their habits if there’s no convenient way to remit.
Staying on top of aging AR often requires a lot of work from accounting staff. They may not have access to reporting, or it could be a lot of manual work. Then, they must send out payment reminders one by one through email. They may ask the salesperson to help, which means they’d be sending the communications.
This model has negative consequences for organizations. There’s wasted time, no easy way to pay and an expanding days outstanding figure. With sales involved, it takes them away from selling and into the role of collecting.
How Payment Reminders Work
The solution to remedy these issues is an integrated electronic payments platform that connects to your traffic system. These systems often embed tools that support reminders and collection activities.
A payment reminder feature enables users to send an email with just a few clicks within the platform. You don’t need to do manual work like downloading the invoice and creating an email from your inbox. It’s all streamlined.
This functionality is available for AR team members and salespeople, so multiple users can divide and conquer on aging invoices.
Within the email, the customer can click to view outstanding invoices and then immediately make a payment online. They can do so within an account they set up or via guest checkout.
While it’s a simple process, it has significant results. This nudge to customers can spur them to pay. Since the links are already in place, it doesn’t require any additional work on their end.
Real Results from Customers Using Payment Reminders
The payment reminder feature in PayNow works in this way. The capability provides a quick solution and is usable by multiple users, including sales.
Recently, we published the story of an AE using the tool, documenting the outcomes. In the case study, the AE had doubts about how straightforward it would be. They were happily surprised that the workflow was fast, not taking more time out of their day.
Sending the reminders prompted faster payments, and customers began to pay on a more regular schedule. The AE shared that for every five emails sent, around three payments came in that week.
More Features of PayNow
Payment reminders are only one of the innovative features PayNow delivers. There’s also a collections tool, pre-payments, guest checkout and more. It’s a comprehensive solution for AR, encompassing electronic invoices, card or ACH payments, and reporting and reconciliation.
