Well, you run the business for earning money and not for charity. Hence, cash flow is critically important for the business. You can’t see the outstanding money getting converted into bad debts just because of your negligence. There are several other ways of donating money to the needy people, and you don’t want to do it with the defaulters. Experts say that in spite of utmost efforts, outstanding payment is a pain in the neck for entrepreneurs. When you are in the real estate business, the condition worsens further. You have cash flow from the customers at different stages, and there is a big possibility of missing the same during the process.
It is not possible to control the cash flow using age old methods. There is always a chance of slipping the payments. Hence, it is always advisable to use smart and effective way to manage this critical metric for your business. When you use a CRM system for the real estate business, it brings a plethora of benefits. One of them is setting automated payment reminder system and alert mechanism. It is a module which not only helps in maintaining the cash flow but also keeps the bad debts under control. It also inculcates the habit amongst the customers of making timely payments.
Chasing non-paying customer is a tedious and time-consuming affair. At times, you feel quite awkward while tapping customers for outstanding money. At the end of the day, you don’t want to spoil the relationship just because of an overdue payment.
Having said it, you can’t afford running the real estate business without money as well. You have a continuous outflow, and it has to be compensated by incoming money. Thankfully, the real estate CRM systems offer highly efficient and effective payment collection module. The three-tier payment reminder system gives sufficient room to you and the customers.
What is a three-tier payment reminder system?
Payment reminder system allows you to send intimations to the customers automatically. These reminders can be in the form of email or message. Whether you want to remind them before the due date or after the due date depends on your discretion. The messages are 100% configurable and customizable. The language, style or presentation can be altered by you based on your wish. Also, it is possible to change it as and when required.
By three-tier payment reminder system, it means that the system will send payment reminder for three times. The time gap or interval can be configured by the users. There are different settings available for payment reminder system:
- Interconnected payment reminders: Once you send the first payment reminder, the information about it gets stored in the system. When the next reminder is sent, it has the reference of the first reminder and so on. Some CRM systems offer intelligent, interconnected payment reminder system where the system stops sending payment reminder if payment is received against the particular invoice.
- Discrete payment reminders: These reminders are independent of each other. Frequency and gap can be configured by the users. The system sends reminders as per the configuration but doesn’t keep an account of it. Also, it doesn’t consider whether the payment has been received or not.
CRM greatly helps in recovering outstanding payment by sending automated, configurable reminders. It is quite user-friendly to set the same. Even non-technical employees can also do it by a minimal training.
How does it work?
Since the CRM system is the integrated and comprehensive business solution, it is possible to use the same for payment reminders. The sub-module uses customer data, takes into consideration the collection rules and formulates reminder logic. Users can define exceptions depending on the customer profile and history. Experts say that using an automated reminder system saves conversion of unpaid accounts into bad debts.
A few inherent benefits:
- It is quite easy to define reminders.
- Configure it and forget it. You don’t need to look into it unless any change is required.
- Don’t put resources and efforts in chasing the customers again and again.
- Since customers are reminded by an automated system, they don’t feel apprehended.
- Wording and presentation of email can be decided by the users. It is possible to change the content and format on the fly also.
- Payment details and mode of payment can also be made part of payment reminders.
- You have a better control of the business. There is no need for human intervention.
- Some systems offer customer-based configuration setting also where you can exclude a customer from the reminder mailing list. At times, you need it for big and reputed high-value clients.
- You can see and control the content of the mail. It is also possible to make the last-minute changes before the reminders get fired.
- The system throws reports about the reminders sent so that you can have an overview.
A CRM system is a great tool for real estate business owners because it makes the things systematic. Like other aspects, it helps in streamlining the cash flow. The money spent for acquiring the CRM system gets compensated by excellent business benefits. Choose from several choices available and uplift the business greatly.
CRM or Customer Relationship Management is a comprehensive system that has changed the way people run the business nowadays. While some consider it just a tool whereas, some call it the strategic management software. It is a set of integrated modules and sub-modules that work for the single-point agenda; customer relation. No wonder, it greatly helps in making the customers aware of the outstanding payments. When you configure automated payment reminders in the system, it is very much possible to tap the customers without manual intervention.
Since it is a system-driven tool, there is high accuracy and efficiency. Also, it doesn’t hurt the feelings of customers because the reminder is sent by a computerized system. Well-formulated, targeted payment reminders bring a significant improvement in the cash flow. No wonder, successful real estate business owners use it quite significantly.