AR Collection Call Scripts: Best Practices and 3 Examples
Communication is key to any relationship, and managing finances with your customers is no exception. Add to that the sensitive nature of late payments and past-due invoices, and your choice of words can prove the difference between money made or money lost.
That’s why well-crafted AR collection call scripts are vital. To help you collect cash faster, we’ve created a simple guide explaining how to create an effective AR call script.
What is an AR collection call script?
Before we get into the “how”, let’s define an AR collection call script. It’s a pre-written dialogue that walks you through collecting money from your customers, and it’s designed to ensure that all relevant points are covered as you manage the conversation.
A call script is particularly important because it can help you to manage late payment discussions and negotiate terms with your customer, all while maintaining professional and ensuring that your company gets paid.
Best practices for effective collections calls
Your goal when making a collection call is collecting payment, while maintaining the positive customer relationship your team has worked hard to cultivate.
Here are best practices that will help deliver that outcome.
- Start on the right foot – The way a call begins sets the tone for the entire conversation. Be friendly, but stay assertive. It’s important to maintain control of the conversation without making the customer feel like they’re being steamrolled.
- Be empathetic —It’s important to demonstrate understanding when speaking with a customer. However, you want to keep the conversation focused on a solution. It can be a difficult balance to strike, but the success of your call hinges on this.
- Practice active listening – To come up with a mutually beneficial solution, you need to understand your customer’s concerns and challenges. That means listening and seeking to find common ground.
- Stay focused – Customers will often try to steer the conversation away from payment. You need to stay focused on the goal — securing payment or establishing a payment plan — without coming across as aggressive.
- Remember: time is money – Your time is valuable, and so is your customer’s time. Keeping the conversation succinct and to the point benefits both parties.
Following these best practices not only increases your chances of getting paid. It can also strengthen your relationship with the customer. That translates into long-term value and provides your company with a customer-centric reputation.
➜ Unlock the Secrets We Discovered from Collecting $59 Billion in AR With the Collections Playbook
A Step-by-Step Guide to Collection Call Scripts
Step 1: Come prepared
Before you make your call, ensure that you have all the information that you’re going to need. That means locating the invoice in question, notes from previous communications, and the status of the customer’s account — at the bare minimum. Having these materials to hand at the beginning of the call will help you stay focused on your target and demonstrate that you have respect for your customer’s time.
Step 2: Start with a clear goal
Set the tone of your conversation immediately with a polite and direct introduction such as, “Hello, this is [Your Name] from [Your Company], calling about your account with us and an outstanding invoice dated [Date].” Establishing the goal of the conversation early will guide the conversation.
If you happen to reach a voicemail, leave a friendly message that doesn’t use the word “collection.”
Step 3: Create a problem-solving dialogue
Ask questions of the customer to get them to explain any problems, questions, or concerns that they may have with their invoice. As issues are raised, be prepared to tackle them and offer solutions or explanations.
Make sure that you clearly ask for payment or a commitment to pay by a firm date.
Step 4: Keep a detailed record of the conversation
You’ll want to keep a written record of your conversation, noting any arrangements made and promises from the customer. The notes should be clear and saved in an accessible location — such as a SharePoint — for other relevant team members.
Step 5: Send a follow-up email
You’ll want to immediately send out an email to the customer documenting your conversation. This communication should include the relevant points covered and details on any arrangements or promises to pay.
Step 6: Schedule a follow-up call
Whether or not a promise to pay has been made, you should schedule a follow-up call and follow through with it. If the customer has promised to pay, this will help ensure the promise is kept. If not, it will help keep the subject top of mind by keeping appropriate pressure on the customer to meet their obligation.
Featured Resource: The AR Collections Playbook
3 Collection Call Script Examples to Get You Paid
With the correct tone and steps established, let’s look at a few examples of conversations your team is likely to have with customers and how to navigate them.
Example 1: Customer forgot to pay
AR representative: Hi, is this [customer name]?
Customer: It is.
AR representative: This is [Your Name] from [Your Company], calling about your account with us and an outstanding invoice dated [Date].” We’re trying to determine why the invoice has not been paid.
Customer: Sorry about that. I’m out of town and it slipped my mind.
AR representative: Okay. I appreciate the explanation. Did you know that there was a link to our payment portal included in the email with your invoice?
Customer: I think I saw that.
AR representative: You can access that from any place at any time to make a payment using ACH, credit card, or wire transfer. Will you be making a payment today?
If the customer says ‘yes’:
AR representative: That’s fantastic. I’ll make a note of that in our records, and I hope you enjoy the rest of your trip.
If the customer says ‘no’:
AR representative: Okay. What we can do instead is create a payment arrangement. Are you able to make a partial payment today? With the invoice being past due, I’d suggest making a partial payment immediately. We can then schedule the next payment at your convenience.
Customer: I can make that work.
AR representative: That’s great. I’ll make a note on your account that you’ll make a partial payment before the end of today, and follow up with you next Monday about scheduling the next payment.
Example 2: Customer did not receive invoice
AR representative: Hi, this is [insert name] calling from [insert company name]. Can I please speak with [customer name]?
Customer: Speaking.
AR representative: I’m reaching out regarding invoice [invoice number] for [total amount]. Our records indicate that payment is past due. We wanted to see if there were any issues with the invoice and if we could be of any assistance.
Customer: I’m looking at my records, and I never received an invoice for that order.
AR representative: I’m sorry for that inconvenience. Let me send a copy of that to you right now. I’m showing an email address of [insert email]. Is that correct?
Customer: It is.
AR representative: Thanks. I just sent you a copy of the invoice, it should be arriving in your inbox right away. Can you check to make sure that it has come through?
Customer: There it is! I just got it.
AR representative: Perfect. Now that you have it, do you think you’d be able to make a payment today, or is there a day that would be more convenient for you?
Customer: I’d like the chance to review the invoice first, just to make sure it’s accurate.
AR representative: That makes sense. What I’m going to do is note that we talked on your account and I’ll follow up with you at the end of the week. If you have any questions in the meantime, please don’t hesitate to reach out.
Example 3: Cash flow challenges
AR representative: Hi, this is [name] calling from [company]. Who am I speaking with?
Customer: This is [customer name].
AR representative: Perfect! I’m following up on your invoice [invoice number] for [amount]. We noticed it was past due and just wanted to touch base about any concerns or issues you might be facing.
Customer: Yeah, I’m sorry about that. We’re facing a cash crunch at the moment and weren’t able to make the payment.
AR representative: I understand that and appreciate the explanation. The economy has been a real challenge for a lot of companies. Can you tell us a little about the challenges you are facing?
Customer: [explains situation]
AR representative: That does sound difficult. As one of our valued customers we want to help you. Why don’t we look at setting up a payment plan? We could start with a partial payment and then schedule a follow-up payment at another time.
Customer: I think I can make that work.
AR representative: Great. I’ll set up a formal agreement and a follow-up to schedule payment for the remaining balance. If you have any additional questions or concerns, please let us know. We’re here to help in any way we can.
Conclusion
When it comes to getting paid, your company needs a well planned and executed collections process. Using the notes and scripts in this blog post will help you to successfully navigate challenging conversations with customers.
You can also improve your odds of getting paid by investing in an AR automation solution that provides automated workflows, an easy customer payment portal, and tools like generative AI that help you create effective customer communications.
To discover how Quadient AR helps you make accounts receivable effortless, book a demo today.
