Even if you are the most proactive club, failed payments will happen. It sucks, but hey, they are part of the business. This is why you need to make sure that you have a process in place regarding managing failed payments as this means lost revenue to your club if left unresolved.
A failed transaction could be an opportunity to re-connect
Every time you speak to your member, you have an opportunity to connect with them. When making contact following a failed payment, this is no different. Below we have listed some simple and easy to follow points to make what is traditionally known as a negative task become a positive one for both member and staff when managing failed payments.
Managing failed payments the Ezy way
One. Be Proactive.
Don’t expect your failed payments to just come to you automatically. You need to apply a sense of agency and take action yourself. This means following up failures after 3-5 days by phone. This is not to money chase; rather to confirm that your customer or member has received Ezypay’s email and are aware of the issue at hand. During this phone call when managing failed payments, you can confirm the rebill if there is one or make alternative arrangements to resolve the issues if they haven’t already paid using the pay-me-today link. (NOTE: This was the process based on access turning from yellow to red after 5 days/rebill failing – the club was getting in early as a gentle reminder).
Why choose the phone? The phone is a much more personalised approach and is the preferable option over email. It allows for a better opportunity to connect, while email may aggravate the member. Email is also much easier to ignore or forget than a phone call. Remember, when it comes to managing failed payments, it is all about being proactive!
Two. Be emphatic
There are many reasons why a member’s payment has failed. More often than not, it is because they forgot to make the payment or don’t understand what occurred. It is your job to find out why their payment was unsuccessful when managing failed payments so that you can help them resolve the issue in the quickest and easiest way possible. If you have repeat offenders, you need to find out why to offer them solutions, but remember, do NOT to play hard ball.
Three. Move quickly to resolution
When it comes to managing failed payments, listen and validate the member’s issues and then move as quickly as possible to the best resolution for their situation. If you spend too long on the failure reason and the fees, you will make this interaction to negative very fast. Instead, if you focus on action and trying to get results, you will make this contact positive.
Four. Stick to your club policies
Be careful about the notion of empathy, especially when managing failed payments. When it comes to being emphatic, it doesn’t mean waiving fees and giving them a free month. It means that you understand their situation and wish to help them within your business or club policies you have set at your club. If you have followed the recommendations in ‘Be Proactive’, then you are less likely to have difficulty with this when managing failed payments.
By following these simple tips when managing failed payments, you increase the likelihood of collecting your failed payments in the quickest and easier way possible, so both parties will have a more positive experience in this sensitive situation.
If you are looking for an easier way when managing failed payments, Ezypay’s direct debit billing company has an effective failed payment process that you can tailor to suit your preferences. In fact, we have a 99.5% collection rate meaning that the amount of times you will have to deal with failed payments is quite low! For more information, please feel free to contact us and one of our friendly team members will be happy to help you out.
Download your FREE eBook: How to improve your cash flow in just 31 days, NOW.