Chasing payment: commercial customers vs residential customers

A Direct, Useful Answer

Chasing payments from commercial customers means navigating their formal process—purchase orders, invoices, and someone in accounts payable. For residential customers, it's more direct but can be inconsistent. Commercial accounts benefit from structured follow-up tailored to their process, while residential customers need a more personal approach. Tagging customers and customizing follow-up sequences can keep things on track.

What Most Owners Try First

Most business owners start by treating every customer the same, sending the same reminder emails or making the same calls. This works at first but quickly becomes inefficient. Commercial clients often ignore generic follow-ups if they don't fit their payment process, leading to frustration and late payments. Residential customers might feel overwhelmed by too many reminders, straining customer relationships.

What to Do Instead

First, identify whether a customer is commercial or residential. For commercial accounts, align your follow-up with their payment process. This might mean sending reminders that reference purchase orders or following up with accounts payable. For residential customers, a personal touch might work best, like friendly reminders that offer flexible payment options. Keep track of which approach works for each type of customer and adjust as needed.

How This Gets Easier with Scheduled Follow-Ups

When follow-ups run on a schedule, you can approve each step without having to remember every detail. ARPilot lets you automate this process, tailoring messages for each customer type and ensuring nothing gets sent without your approval. Commercial customers get the process they expect, and residential customers get the personal touch they need—all without you having to micromanage each step.

FAQ

How do I know if a customer is commercial or residential?

Look at their payment behavior and communication. Commercial customers often involve purchase orders and accounts payable departments, while residential customers handle payments more personally.

What should I include in a commercial follow-up email?

Refer to their purchase order, specify the invoice number, and address it to the person responsible for payments. Keep a professional tone and include all necessary payment details.

How often should I follow up with residential customers?

Start with a gentle reminder a few days after the due date, then follow up weekly if needed. Be personal and flexible in your communication.

Can ARPilot really help with both customer types?

Yes, ARPilot allows you to customize follow-up sequences to match the needs of both commercial and residential clients, saving you time and improving payment rates.

Do I need special training to use ARPilot?

No special training is needed. ARPilot integrates with QuickBooks Online and is designed to be user-friendly, letting you approve every message before it sends.