Electronic Payments Are Good for Finance and Customers: How to Drive Adoption with the Right Change Management Philosophy

Those words encapsulate what good change management should entail As financial leaders youamp8217ve had to manage transitions to new technology to modernize and optimize your workflows One obstacle is changing the behavior of how customers pay Payment industry research shows that most people accept and use electronic payments in their personal lives and for their business finances Recognizing the need to be ready when customers choose to pay media companies now make this part of their revenue cycle management The result is a more stable cash flow fewer daysamp8217 sales outstanding reduced hard costs and improved backoffice efficiencyBroadcasters adopting electronic invoicing and payments reap these advantages simplify workflows and reduce the time and labor associated with paper invoices and checks Iamp8217ve talked with many broadcasters about this shift and theyamp8217ve all noted the need to change mindsets and behavior around payments internally and with advertisers and agenciesAs a result many companies have integrated practices and strategies to increase adoption Below are some learnings and ideas to get your staff and advertisers to adopt electronic payment workflowsStart with Your SellersYour sales team has a direct relationship with customers and often plays a role in payments They may swing by and pick up checks or call about outstanding balances They are also part of account setup and remittance processesSalespeople can connect the dots on the benefits of electronic payments Invoices and payments arrive sooner by skipping the mail There are fewer excuses resulting in less time chasing customers down to collect Accounting is automated and there are options for requesting payments in advance or taking them on the spotFinance can also take sellers into the mechanics of the paper process including how much time and cost it eats up With many businesses dealing with reduced staff itamp8217s simply not sustainable If it takes too long to get invoices out checks will be delayed which could affect their commissions Walking salespeople through this may create some lightbulb momentsThere will still be pushback as weamp8217ve heard from customers Payments are a sensitive topic and weamp8217ve learned from finance managers how theyamp8217re navigating this issue by demonstrating how easy electronic payments are and how they benefit everyone Customers can make and track payments more easily and salespeople will see their commissions safeguarded with faster collections Include your sales team in creating the new processes so they feel excited about the new systems and take ownership of their part in this electronic workflowMake Electronic Invoices and Payments the DefaultInitiating change isnamp8217t always about going from one option to another for customers Rather the organizationamp8217s shift dictates the process Many stations using electronic invoicing and payments began making it the default at new customer setup This process also requires coordination with sales as they often set this customer expectation up front Sales must be on board to establish that this is the broadcasteramp8217s uniform approach to invoices and payments with new customers leading to their comfort with the process It can also make the rollout to the existing customer base more seamlessIn expansion the most successful broadcasters weamp8217ve worked with have made it a policy to send advertisers an electronic and mailed invoice Theyamp8217ve relayed that this small change gets more people to adopt and theyamp8217re near 100 of billing electronicallyCommunicate Early and Often to Dispel Misconceptions and WorryMuch of the friction to change comes from misconceptions and fear Advertisers may have concerns about security or creating accounts Proactive communication will ensure these concerns donamp8217t impact adoption Many stations take the first step by emailing and adding an insert into the mailed invoice This document can include FAQs about security the process and any requirementsAfter the initial communication track who has adopted and who hasnamp8217t Extend outreach through their salesperson such as additional emails for those slow to change Be ready to answer questions It also helps to advise customers why electronic invoicing and payments are more efficient for them They have control over what they pay and may be able to use a credit card for additional float and better cash management They have access to an online portal to view invoices statements and payment history rather than needing to request that information Also they may not realize the costs of paying by check the cost of issuing a check is between 2 and 4 per check which can add up over timeThe more educated someone is about a topic the more open they will be to change By giving them information thatamp8217s accurate and demonstrates value you make them part of the change processChange Management Moves the Revenue Needle ForwardAdopting these practices will make a difference in your cash flow and revenue cycle Be proactive to get internal influencers on board early Put a policy in place and ensure you have leadership buyin and support By working together youamp8217ll see results Our customers have reported wins like improved days outstanding by as many as 15 days reduced postage and paper costs and incremental adoption rates each month With a robust electronic invoicing and payment solution a resolve to provide a modern payment experience and a focus on change as something everyone can be part of your company can attain these same winsThis article was written by Jeff London Marketronamp8217s GM TrafficSVP of Client Services London oversees traffic and payment solutions and services customer success implementations and training support services and IT functions at MarketronPosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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Electronic Payments Are Good for Finance and Customers: How to Drive Adoption with the Right Change Management Philosophy

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