When starting a SaaS company, entrepreneurs begin with a unique idea to solve customer challenges. Customer Success ensures that the product is used successfully by those customers. This business practice ensures that customer churn is reduced and the customers become advocates for the brand.
As a B2B business that supports other B2B businesses, we understand the value of strong client relationships. Much like other relationships, the value can increase over time, offering financial benefits through referrals and upselling. If handled correctly, these relationships can also be mutually beneficial to both parties.
Here's how to create strong client relationships and reap long-term benefits.
Commercial debt recovery, also called corporate collections or B2B debt collections, is used specifically to recover delinquent business customer accounts. Not to be confused with consumer debt collections where the delinquent account holder is an individual, commercial debts refer only to businesses. To clear up any confusion, we'll cover what's different and why.
What types of businesses use commercial debt recovery?
Setting up any sort of retainer or regular payments seems to be a great business model. Subscribers to software-as-a-service are auto-billed or auto-renewed regularly, funding any updates to the product and keeping cash flowing. The challenges arise with missed payments or non-paying customers.
Is there a good way to collect from non-paying SaaS customers?
If you're in sales, and we all are, you've heard the expression that it's cheaper to retain a customer than to get a new one. Sales and marketing is expensive and retention is easier because the relationship has already been established. Instead of losing customers, especially SaaS customers that have been working with you for months or years, let's try to understand why they're leaving.
Is there a way to reduce churn among SaaS customers?
As we move into the new year and look back on 2020, we are able to get a clearer picture of what topics to cover in 2021. The mission of this blog is to inform our readers, whether they're our clients or not. It's important for us to help tech entrepreneurs, startup businesses, small businesses, freelancers, independent consultants, manufacturers and other business-to-business organizations build better relationships with their clients. We believe better relationships mean better cashflow.
Here are the Top B2B Debt Collections and Client Retention Blogs of 2020.
The internet allows for businesses to sell the use of software (and hardware) and revenue is collected either yearly or monthly as a subscription service. The as-a-service or subscription business model is sustainable as long as payments are received. Because client retention is very important to this business model, debt collections must be handled with business relationships in mind.
Here are four things to consider when sending SaaS clients to debt collections.
As if it's not challenging enough to deal with late paying clients, the pandemic and the holiday season can add more stress. Your business may be working to resolve late payments to close out your year. Your clients may be struggling with cash flow shortages due to the pandemic. Is there a gentle-yet-firm way to ask that your invoices are paid on time?
Resolve late payments during a pandemic and the holidays by using these opportunities to connect.
As we've said before, time is money. With that in mind, the last thing you or your sales reps want to do is spend time with a client who:
- Doesn't match your version of the ideal client
- Doesn't have a need for what you're offering
- Doesn't have the money to pay you
Timing is also everything. Your salespeople need to be able to identify if the client meets all of your qualifiers and is ready to buy.
Here are 8 open-ended sales questions to qualify if a client is worth your time.
Yesterday, the LA Times reported "'Work from Anywhere'" is Here to Stay" noting that tech companies are leading the way to making remote work permanent for their employees. IBM's CEO also stated that even with a predicted COVID vaccine, remote work would continue. It's not a surprise that for technology or digital marketing companies, remote work will be the norm, even after the pandemic. What was a bonus for employees before, has now turned into cost savings for these businesses.