Creating customer relationships over transactions

To those outside the industry, business-to-business credit management can appear cut and dry. Bound by a strict financial agreement, a company sells a product or service on credit terms to a company that agrees to make payments until the debt is cleared.

But reducing business credit to its transactional elements misses the bigger picture. What truly keeps business moving isn’t transactions—it’s the relationships built along the way.

Why it matters: Strong customer relationships keep business running smoothly, increasing the likelihood of timely payment and future collaboration. Forming and maintaining these connections, however, takes time and effort on the creditor’s part.

When we talk about strong customer relationships, we’re not talking about your best-paying customers—we’re talking about the ones you can have open and honest communication with. “In an unpredictable industry like ours, trust with your customer is an important thing to have,” said Sheila Roames, CCE, western regional credit manager at Ergon Asphalt & Emulsions (Chandler, AZ). “If a customer is comfortable enough to talk to me should something go awry, I know that I’ve formed a strong connection there and I’m better able to help them.”

These relationships take time to develop, evolving from surface-level small talk to candid conversations about friends and family. “As the relationship develops, I try to learn more about the person behind the company starting with their favorite hobbies and interests,” said Mark Micelli, credit manager at Builders Products, Inc. (Houston, TX). “I’ve found that having a good rapport with customers puts you first on the call sheet, making them more responsive and willing to share information with you. If you’re on good terms, they’re more likely to pay on time or sooner.”

Developing these connections isn’t always easy. During times of uncertainty, it can be challenging to form and maintain them. “During organizational changes, some companies shift people around, removing established relations,” said Micelli. “In such cases, especially if the person still works for the company, I make an effort to maintain that relationship. Oftentimes, I’ve found that they can speak to their sales and leadership on my behalf, which improves overall collaboration and communication.”

Communication styles vary by company depending on their size, structure and business culture. “I’m more personable and mindful during my interactions with smaller companies because I could be working with an owner’s wife, relative or close friend, and I don’t want to come across as impolite or offensive,” said Micelli. “For larger companies, I’m usually working with AP representatives, which may involve a more indirect, formal approach. The larger the company is, the more infrequent the communication, which makes me work harder to strengthen the relationship.”

For international accounts, cultural and geographic differences can play a part. For example, working across different time zones and business practices—such as those between the U.S. and Europe—requires additional effort to maintain a positive and responsive relationship. “What may be proper to you may be improper in other regions so it’s important to know your customer and the cultural norms and customs of their country to cultivate that relationship,” said Roames.

Strategies to maintain customer relationships

Once you start learning about the customer’s personality and communication style, you’ll be able to find how best to communicate with them. “Some customers may prefer email while others may prefer talking on the phone,” said Micelli. “Some won’t feel fully comfortable until you meet them in person. Being easily accessible, in person or digitally, and using their preferred method of communication shows them that you value them as a customer, which helps them open up and be more willing to collaborate in the future.”

As artificial intelligence (AI) evolves, some credit managers worry that an overreliance on it can weaken customer relationships. Although generative AI can help streamline communication with customers, it can also make interactions feel less personal over time. Despite these downsides, some credit professionals believe that when used strategically, AI can become a tool to strengthen customer relations significantly.

“AI doesn’t replace the human element, it elevates it,” said Roames. “If you let it handle data, identify patterns and improve efficiency, you can spend more time on what truly matters, connecting with your customers. Once you know your customer and their character, you’re better able to maintain that relationship and mitigate risk.”

The bottom line: Though it takes time to develop, a strong customer relationship is what separates a reliable partnership from an uncertain transaction—one in which both parties hold an equal measure of understanding, trust and respect.

For more information on AI’s role in customer relationship building, join Sheila Roames, CCE, for her session, Don’t Automate the Relationship: The Human Edge/Personal Touch for Smarter Collections at this year’s Credit Congress & Expo on June 10.