Sep 13, 2012
Promoting Direct Debit to your customers
Recently there has been a lot of news, especially from Energy providers, surrounding the payment of bills via Direct Debit. Utilising Direct Debit as your primary payment collection method will improve your cash flow, reduce the time spent chasing for payment, allow you to forecast accurately and be significantly cheaper for you to administer. Direct Debit is now recognised as the most cost-effective way for an organisation to collect regular ongoing payments. Below we have compiled a few ways to help you promote Direct Debit to your customers:
Incentivise your customers: Incentives are a great way to encourage your customers to pay by this method. Here are a few ideas on incentives:
- Discounted period: You can offer a discounted or free period for your product or service.
- Prize draw: Councils across the UK have been in the news recently after using cash prize draws as an initiative to get people to sign up to Direct Debit to pay their Council Tax. The prize doesn’t necessarily have to be cash – items such as Kindles or iPads are often offered as prizes. This is most effective for those with a large customer base.
- On-going discount: We have seen many companies offering lower prices for those who pay by Direct Debit. By showing comparisons between the prices for automated electronic payments and cash/cheque payments, customers will see a clear cost-benefit to sign up to Direct Debit.
Offer them flexibility: One of the main benefits of Direct Debits is flexibility. Direct Debit allows your organisation to offer multiple collection dates. Your customers are much more likely to sign up to pay you by Direct Debit if you give them payment dates that are more suitable to them.
Explain the benefits of Direct Debit: Customers don’t know what they are missing if you don’t tell them. Here are a few of the benefits of Direct Debit to your customers:
- It spreads the costs: Paying regular bills by Direct Debit allows you to spread the costs over a period that you agree with the organisation.
- It can save you money: Many organisations offer their customers discounts in return for making payments by Direct Debit.
- Saves you time: The hassle associated with paying bills can be eradicated when paying by Direct Debit. You will find it easier to stay on top of bills and know exactly how much money will leave your account after each collection date.
- Direct Debits are guaranteed: Direct Debits come with a guarantee, so you are protected from any erroneous payments taken from your account. Click here for the Direct Debit Guarantee in full.
Make it easy for them to sign up: Offer your customers multiple channels to sign up to pay by Direct Debit; face-to-face, through your website or over the telephone.
For more information on promoting Direct Debit to your customers, please call our sales team.