Good cheer or bad taste? That’s a tough question when it comes to mixing humor and collections.
But here’s an interesting insight from one consultant, who believes the two are better left separated. Michael Dennis, a former collections manager, says a cutesy past-due reminder with a humorous touch “trivializes the problem.” That’s being said, he admits to using irony in his collection efforts.
Ready for an example? Dennis sends birthday cards to delinquent account holders. Here’s an example from a recent blog post: “Happy Birthday to invoice #123456 for $xxxx which is now a year old. Please take immediate action to prevent this invoice from getting any older.”
One greeting card company offers cartoon bills to put the humor in collection efforts. Obviously, some believe humor has the power to move a past-due account into the current column.
Cutesy cards only go so far in keeping the books current. Even though it’s all too easy for a busy merchant to let those past-due notices slip, it’s no laughing matter when your accounts receivable are sapping the lifeblood of operating capital from your business.
As for humor, a light touch now and then certainly won’t hurt and may prove beneficial to boosting long-term relationships with valuable customers. On the other hand, for those problematic accounts, stalling could be a cash-flow strategy that benefits them but hurts your business. If you’re having problems with collecting bills from clients, it’s no laughing matter. When your efforts fail to bring accounts current, perhaps it’s time to call in a professional collector so you can move on with your business plans and not have your valuable time and capital tied up with past due collection issues.