Good Customers relationship as a catalyst to improving receivables collection period

By Shodipe Adeolu

* Outline1.Definition of customer2.How importance is the

customer?3.Important of Customer

Satisfaction4.What is Customer Relationship?5.Characteristic of a good

customer relation6.How good customer relationship

helps facilitate receivables collection period?

* Definition OF customer?

• A person who buys goods or services from a shop or business.

• A person of a specified kind with whom one has to deal with.

How Important is the Customer?The customer is the only source of the company’s present profit and future growth, they are the most important people for any organization. They are the resource upon which the success of the business depends. When thinking about the importance of customers it is useful to remember the following points:

* How Importance is the CUSTOMER?

1. Organizations are dependent upon their customers. If they do not develop customer loyalty and satisfaction, they could lose their customers.2. Without customers the organization would not exist.3. The purpose of the organization is to fulfill the needs of the customers.4. The customer makes it possible to achieve business aims.WHY CUSTOMER SATISFACTION IS

IMPORTANT?• It’s a leading indicator of consumer repurchase intentions and

loyalty• It’s a point of differentiation• It reduces customer churn• It increases customer lifetime value• It reduces negative word of mouth• It’s cheaper to retain customers than acquire new ones

* CUSTOMER RELATIONSHIPWHAT IS CUSTOMER

RELATIONSHIP?• Customer relationship refers to the way a business

communicates and interacts with the public to gain and retain customers. It involves managing communications with customers, particularly customer questions and complaints, and resolving disputes amicably.• Customer relationship is a strategy for understanding your customers

and their needs in order to optimize your interactions with them.

• Customer relationship is widely described as a strategy, processes and practices or methodology. Customer relationship management is not just something that is done once to new customers it is a continuous process. Customer Relationship Management, is an essential part of modern business management.

* How GOOD CUSTOMER RELATIONSHIP HELPS FACILITATE RECEIVABLE COLLECTION PERIOD

Customer response time: It's no secret that the quicker you respond to customers' questions, the happier they'll be and the faster you'll get paid. Let your customers know that you care about addressing their concerns and that they remain a priority even after the sale.  Invoice accuracy: A fast response time is important, but the best customer service is when the customer doesn't have to ask a question in the first place. Pride yourself on sending out accurate and clear invoices and you will have happy customers.  Customer satisfaction: How satisfied are your customers after your product or service has been paid for? Don't just assume that because they've paid, they are happy. The collection and payment process is often the last interaction with the customer (hopefully until the next sale). Make sure they leave happy, but as stated above, keep in mind that they have many other vendors.