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How to Lose a Customer: Seven Practices Credit and Collections Need to Avoid

An article in the Credit Today's Weekly eNews details how not to kill a customer. 1. Holding Orders unnecessarily 2. Treating All Customers the Same 3. Continually Sending Out Incorrect Invoices 4. Taking a Long Time to Resolve Disputes, Discrepancies and Deductions 5. Repeatedly Sending out Statements and Past Due Notices that Contain Disputed Items or (Unresolved) Deductions 6. Passing Customers with Complaints from Person-to-Person and Department-to-Department 7. Not Listening Do you have any additional items to add?

Answers

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Good list to start!
8. Over promising and under delivering:
-on service or product -not meeting real needs
-timeliness
-quality

9. Using terms & conditions that contain one sided/unnecessarily onerous obligations or limits on liability

John P. Martin
Title: Analyst - Finance
Company: Own
(Analyst - Finance, Own) |

Yes, all areas to lose customers very quickly. I would emphasize: 7. Not Listening…and not taking quick actionable steps to address questions / issues to achieve solutions. And 10. Not providing updates to customers in the case of lengthy solutions.

Mark Matheny
Title: VP - FInancial Planning and Analysis
Company: Novolex (formerly Hilex Poly)
(VP - FInancial Planning and Analysis, Novolex (formerly Hilex Poly)) |

Not having a process that communicates to the Credit and Collections Department what Sales agreed to orally or in writing..

Michael Katz
Title: Treasurer
Company: SB2 Consultants
(Treasurer, SB2 Consultants) |

And a plus: Give customers the option to pay EARLY in return for a better-than-standard discount.

Anonymous
(Accountant) |

Why would you like to kill your customer?

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