5 Recurring Billing and Invoicing Errors That Can Undermine Your Customer Relationships

It is no mystery that companies operating under a subscription management system have to chase after customers month after month. All to streamline their cash flow. Collecting outstanding payments is a major concern for majority of the businesses. For this, they have to send out recurring invoices on a regular basis.

However, care must be taken to maintain proper decorum while sending out payment reminders. This is critical for the success of the company and helps to maintain a positive relationship with customers.

Primarily, you make use of invoices as a form of communication between you and your clients. Hence, a poorly designed one could hinder timely payments. As an entrepreneur, you need to pay close attention to the invoicing process so that the margin of error remains zero.

At times, businesses fail to realize billing mistakes, but their customers don’t. If customers dislike your invoicing practices, it won’t take long for them to take their business to one of your competitors. Don’t let that happen. Instead, take note of these top 5 invoicing mistakes so that you can avoid them.

1. Ambiguity or unexplained information

Imagine receiving a generic email mentioning that you owe X amount of dollars to a vendor. It doesn’t say anything about the other details. This will leave you feeling puzzled. With generic emails, your customers feel the same. They may be receiving invoices from multiple vendors every month. This can confuse charges for them.

This is why you need to avoid sending ambiguous payment emails. Here’s what you should be doing instead:

• Send emails that give a full breakdown of charges.
• Make invoices easy to understand.
• Address customer by their name for personalized communication.
• If there is additional information such as special offers, upgrades or charges for renewal, state them clearly.

This helps the client identify their charges fast, and keep track of their payment cycles.

2. Not using the right tone

Invoices are an impersonal mode of communication and may fail to connect with customers. Being polite and making use of terms such as ‘thank you’ can go a long way in building a good customer relationship. On the other hand, using language such as ‘if you fail to pay on time…’, or ‘stop delaying your payment’ comes off as harsh and unwelcoming. It is a big no for businesses.

3. Failing to follow up

During the billing and invoicing process, nothing hurts a business as bad as overdue payments. If this situation prolongs, it is very likely to create issues with your accounting books.  To combat it, you need to send out a polite reminder that payment is due.

There can be a number of reasons why a customer couldn’t pay on time. It is important that as a business you keep your cool. Send out friendly reminders and emails that escalate gradually. Don’t send out a harsh email on day one!

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4. Issuing non-branded invoices

When you are creating templates for your invoices, make sure to use the company’s logo and colors to make it look distinctive. This will immediately set you apart from the other payment emails your customer might be receiving.

5. Not deploying marketing tactics when the time is right

Many fail to capitalize on this hidden marketing opportunity: updating customers on new product launches or offering them discounts. When sending out invoice emails, let customers know if there are any offers that they can take part in, or any new products or features they would love.

Timely engagement can increase upsells and cross-sells, and can also help retain customers through discounts.

A powerful subscription management software can easily help you avoid these 5 mistakes. With this software, you can create branded invoice templates, and send personalized emails and payment reminders.

If you’re looking for a good billing and invoicing software, consider SubscriptionFlow. Its subscription analytics and reporting tools can help you further improve the efficiency of your business. Watch this space for more updates.