Auto-billing or automatically invoicing your customers can have a significant effect on your business. Many businesses use this billing method to save time and have their payments processed more efficiently, these often include businesses which provide regular and standard services to their customers.
But how does auto-billing affect your business and customers? And how can you make the system more effective for you?
1. Customers Don’t Like Surprises
Customers don’t like unexpected bills suddenly arriving. Auto-billing works around this by giving a set date and an amount which the customer can expect to pay. With this information your customers can plan their finances so they have the funds necessary to settle their accounts.
Being prepared will allow the customer to feel in control. You’ll also find because they are expecting the bill they will be more accepting and less likely to challenge any aspect. Therefore you can save time with customer service.
This can however backfire when your customers have used more than they expected and as a result receive a higher bill. If there is a possibility that this may occur, then you need to ensure there are several elements within your billing process including:
- Careful monitoring so you can show the customer their usage and where extra charges have been incurred.
- A period of warning so the customer can take action either by speaking to you directly about the extra charges or by ensuring the extra funds are made available by the payment due date.
2. It Builds Trust
Building a strong relationship between you and your customers is essential for retaining them in the long run. Having a reliable billing service allows the customer to build trust in your brand. Customers are more likely to retain the services of brand they know and trust than move to a competitor even if prices are lower.
Therefore as a business, you need to ensure your auto-billing is consistent. Have your bills go out on the same date every month, probably one of the better days for this would be the 1st, and avoid the 29th – 31st of months.
3. Auto-billing Means Fewer Mistakes Via Human Error
Some of the biggest mistakes made on manual invoicing are simply caused by human error. Auto-billing removes the human element from the system and therefore the chances of this is less. With fewer mistakes on invoices, customers will see your business as more professional.
For this to become a better asset you have to ensure your monitoring system for u
sage is reliable. A good performing monitoring system will mean less customer enquiries on their bills.
4. It Gives You More Time To Delight Your Customers
Without having to manually calculate and process invoices you can assign your staff to other tasks. This can include other productive outlets, to provide add-on services to surpass your customers’ expectations and again retain their loyalty.
You will also find that because there are fewer mistakes, you will be fielding less billing enquiries and you will also feel more efficient when you don’t spend hours calculating and forwarding bills on to your customers, giving you more freedom to spend time on what you are good at.
Auto-billing can be a great process to start using in your business. It can help you to achieve a better relationship with your customers and allow you to spend more time on performing the tasks you are best suited for. Therefore review your business’ invoicing system to see how you can set-up and implement an auto-billing system.