Late last week, Citibank made headlines when, rather than sending $7.8M in interest payments on the behalf of their client (cosmetics giant Revlon), Citibank accidentally sent $900M to creditors.
to dun (dŭn) tr.vbto make repeated and insistent demands upon, especially for the payment of a debt; often involves escalating degrees of intensity; term first recorded in English in 1620–30.
You’d be hard pressed to find many people who actually enjoy chasing down clients for late payments, but it’s a challenge that businesses have had to deal with for as long as people have been trading products and services… Payments are sometimes late, and tough economic times only put more pressure on accounting teams to recover payments and balance the books each month.
If the process of chasing down payments—a.k.a., “dunning” in accounting parlance—has in fact been around since at least 1620, then you’d think that someone would have come up with a no-fail way to guarantee timely payment by now.
Yet, while no single methodology can guarantee timely revenue recovery, you can take steps to improve your quote-to-cash process. Our recommendation: Implement a solid dunning management strategy that caters to your customers’ ways of doing business with you.
While it may have taken grand ideas and more than a little ingenuity to build some of today’s most well-known companies (e.g., Amazon, Apple, Disney, Google, HP and Microsoft started in their founders’ garages), the long-term success of businesses these days is built on the backs of customer relationships.
Sameer recently presented a pre-conference workshop at the Recurring Revenue Conference which brought together over 700 attendees from around the world to talk about scaling businesses. One of the important factors in building a sustainable B2B or B2C business is managing and reducing churn (when a customer partially or completely falls off their journey with you).