The Automation of Customer Accounts: Overcoming Common Objections
Automation of customer accounts through advanced software solutions is gradually becoming a standard practice across organizations. This approach aims to optimize efficiency and maximize profitability in customer account-related processes. In our interactions with international finance teams, we've identified the top four common excuses for delaying the adoption of this technology. By critically evaluating these objections, we hope to help companies realize the tangible benefits of automation.
Excuse #1: "We've Always Done It This Way" or Resistance to Modernization
While traditions undoubtedly play a crucial role in a company's culture, they should never hinder growth and operational efficiency. Manual management of customer accounts not only increases the risk of payment delays but also complicates debt recovery efforts.
According to the annual report from the Bank of France, nearly one in three invoices in France was paid late in 2022. Often, this is due to errors in billing, which frequently result from manual data entry from non-integrated CRM and ERP systems. Adopting an intelligent automation solution that combines artificial intelligence and machine learning can eliminate these errors, improving cash flow and budget forecast accuracy.
Excuse #2: "We Lack the Required IT Skills (or Resources)" or the Technical Excuse
IT constraints are a legitimate concern for many businesses. However, maintaining outdated solutions can be costlier and more complex in the long run than targeted investments. Experience has shown that modern solutions can quickly reduce maintenance needs and provide an intuitive user interface.
By collaborating with integration experts like Quadient, the transition to an automation solution can be smooth, without overburdening your IT teams.
Excuse #3: "It's Too Expensive," the Price Excuse
This is perhaps the most commonly heard excuse for delaying the implementation of customer account automation. There's a widespread perception that investing in new software could outweigh its potential benefits. However, studies on the subject indicate otherwise.
Late payments are not only detrimental to cash flow but also result in financial losses. The longer an invoice remains unpaid, the more its value depreciates, reducing the chances of full recovery. According to Dun & Bradstreet, the probability of payment for an invoice drops to 69.6% after 90 days. If the delay extends to 12 months, this probability falls to 22.8%.
When evaluating the actual cost of manual customer account management and its impact on late payments, it becomes clear that the traditional method is financially unfavorable.
Excuse #4: "We Want to Maintain Real Relationships with Our Customers," the Human Contact Excuse
Another common concern is the fear of losing human interaction by adopting automated processes. This concern is valid, especially since PricewaterhouseCoopers reports that 59% of consumers believe that the human element is diminishing in the customer experience.
However, it's essential to understand that automating customer account processes can paradoxically enable more human interaction. With manual management, your team spends valuable time on routine activities, leaving little room for relationship management.
Automation frees up your team to focus on strategic and high-risk accounts. This allows them to provide superior service and collaborate closely with customers to ensure timely payments while understanding their specific challenges.
If you'd like to discuss these objections or have heard others, we invite you to contact us. Our experts would be delighted to engage with you regarding your needs and how Bezara could help you automate your accounts receivable management, increase your revenues, and free up time for your teams.