Customer education boosts trust and success

Whether it’s about the latest technology or providing a thorough understanding of their terms and conditions, credit professionals are always striving to keep their customers well-informed and educated.

Why it matters: Counseling or educating your customers not only shows that you value them, but it enhances trust, business performance and professional reputation.

What they’re saying: Counseling or educating customers during the onboarding process is vital, as it shapes the customer relationship and future credit decisions. Brittany Yvon, CBA, CICP, credit manager at OMG, Inc. (Agawam, MA), sends her new customers a welcome packet that includes their terms, conditions of sale, return policy and bank information.

“We go over our welcome packet to ensure there are no surprises with any of the information I send to them and have them sign off on the information,” Yvon said. “We try to push for ACH by listing the benefits such as it being quicker and avoiding USPS delays.”

Credit professionals can also counsel their customers on best practices for their business. Carl Davidson, director credit and collections at Blue Water Industries LLC (Jacksonville, FL), educates his customers on construction lien laws by forwarding information about seminars in their area. “It’s one of the best things we can do because the customer sees that we’re trying to help them and make sure that they’re going to get paid so that they in turn can pay us timely.”

It is imperative to keep customers informed about the latest trends and developments to mitigate the risk of financial loss. Davidson arranges sessions with attorneys to alert his customers about upcoming changes, particularly those that may negatively impact suppliers and contractors.

“We also help them understand our process as far as how we invoice and how we send statements,” Davidson said. “It’s amazing how many customers double pay us, first from a ticket and then an invoice, or from an invoice and then a statement.”

Through technology, customers can stay informed on any recent changes or updates. “Customers are able to track shipments, create quotes and make payments online using a portal,” said Ashley Kusiolek, AR specialist at Trinity Logistics (Seaford, DE). “We also have a PDF file that walks them step-by-step through the process, which is easy to send over to them.”

Yes but: Credit professionals may counsel their customers on financials, such as credit scoring, to strengthen their financial position. But avoid sharing proprietary or competitive information with customers to comply with antitrust laws. Violations can lead to liability, financial loss and reputational damage for all involved.

Marlene Groh, CCE, ICCE, regional credit manager at Carrier Enterprises LLC (Charlotte, NC), won’t advise customers on financial analysis but she will help customers find resources to address concerns. “I tell customers what could be hurting their credit score but not what to do because that could lead to culpability,” she said.

Instead, Groh helps her customers by providing education or information on lien rights and how to secure them on their commercial jobs. Her company also offers programs to help manage business practices, such as financing options for customers.

Helping your customer succeed, rather than just making money, is the epitome of a good business. “Anybody who sees that you’re trying to help them be successful, is going to trust you more and move you to the top of that pay list because they know that you’re looking out for them,” Davidson said.

The bottom line: Consider prioritizing customer counseling and education to enhance trust, improve business performance and protect against financial risks, while avoiding the sharing of proprietary or competitive information.