3. Send the Automated Invoice Email one week prior to payment due date
For members not set up on auto-payment, we recommend using the Automated Invoice Email in the Member Manager software message center. You can set this email to send automatically based on the member’s payment due date. The invoice will be attached to the email at the time of sending. We recommend setting the Automated Invoice Email one week prior to the member’s payment due date to give members ample notice and help prevent late member payments.
4. Establish a clear collections process from the get-go
All studios need to have a clear collections process to ensure the financial health of their business. Make sure your member agreements include clear terms about the member’s responsibility to pay. It’s a good practice to review the payment amounts, due dates, and the membership duration with the member and have them sign off on the information, so that clear expectations are set.
In addition, at the time of signing the membership agreement, be sure to collect as much contact information as possible from each member, so that it is easy to get a hold of members should there be any payment issues. That includes the member’s mobile phone number, their email address, their workplace address, and their physical mailing address. This makes it easier to reach out through multiple channels to connect with your members.
5. When all else fails, delegate to an expert
No doubt, collecting late payments from members successfully, without damaging the relationship in the process, is a challenge. To truly be successful, appoint a dedicated staff member who is responsible for tracking late payments and recovering payments — a person who owns the task and reports on progress regularly.
If billing and invoicing in-house isn’t working, consider outsourcing your payment recovery efforts to a team of managed billing professionals to bypass the awkward asks and eliminate the complicated follow-up process altogether. By outsourcing, you also give yourself and your staff more time to focus on your business and its members, all while enjoying a healthier bottom line.
At Member Solutions, we have nearly 30 years of experience in professionally recovering payments, in-depth understanding of the payment processing business, and are better able to troubleshoot issues with failed credit card payments or delinquency. Think of us as an extension of your business. Your billing team. Your financial counselor who wants to help alleviate some the strains money puts on your member relationships.
It pays to be proactive!
A small change can often make a big difference. Put these proactive measures in place at your studio, and you’ll soon see your late member payments shrink and on-time member payments grow.
If you have any questions about the software, its features, or would like additional details about our full-service billing solution, give us a call at 888.277.4409 or book a time here with one of our Client Success Managers. We’re here and happy to help!
