When running a business with people making their purchases on credit, you encounter different types of customers. They vary in their preferences, their responses and also in the way they pay their obligations.
As credit collection becomes a necessary function, it is recommended for a business to create a debt collection plan or program that includes proper scheduling of calls and correspondence, as well as organizing records into a database, classified according to the type of customers.
Although the tasks of building a customer payment classification database of customers may take some time and resources, the idea here is to come up with a system that will enable well-planned debt collection process, which would later on lead to more savings for the company.
Classify customers based on several categories, such as amount owed, frequency of payment, location, etc. Put notes on each customer, and be sure to update the record and move customers into a new category as necessary. One example of classification could place customers into risk categories such as normal, slow pay, needing attention, high risk, etc. Whatever the categories used, be sure to be clear on why the customer was placed in such category and the collection process or steps that would have to be taken on such category or type of customer.
