Reviving dead accounts with unique payment terms
It can be so tempting to chase new accounts and new customers when looking to increase sales or profits. However, one of the best ways that a company can improve its bottom line is through repeat business. As a result, it can be extremely profitable to find any accounts on a company’s books that have not made use of that company’s services for a long time. But how can a recruitment agency entice an old client to start using them again – and more importantly start paying them a fee again?
Here, we look at reviving dead accounts with unique payment terms as a way to attract back past business. Doing so can be so beneficial to a company’s profits – and not simply because its doing more business. For that reason, we examine not only how to offer unique payment terms to old clients, but why.
How to revive a business relationship
Reviving dead accounts with unique payment terms may sound straight forward – the inference is that you offer your services more cheaply on a client to client basis. However, there is far more to it than that. It is essential that those unique payment terms are still bringing in enough money for the recruitment agency to stay solvent.
To offer either cheaper contracts or payment terms where a bill is paid over a longer period of time, it is probably required for a firm to cut back in some areas. If this is going to be an issue for your firm, look at areas that you could save some cash. Remember little changes can really add up quite quickly. In time, those saved costs will continue, yet the amount of money you are bringing in actually increases exponentially by reviving old accounts that were otherwise dead weight at your firm.
Cost saving does not always have to be finding a different supplier for your stationary needs or running other parts of your business more cheaply. Instead, you can make cost saving measures by improving efficiencies within your team or company as a whole. Making your team more productive is one of the key methods you can employ to enable you to offer old clients preferential rates. Look at your firm’s processes and teamwork to highlight what can be improved – and where.
While a team’s effective communication at a recruitment agency is what can help drive productivity, it is important to promote better communication with clients too. Working closely with a business to ascertain why the relationship tailed off is a crucial way to identify where your business may be going wrong. That communication can help establish any common problems or themes that your company is suffering from. Plus, with improved communication with a client, you are far more likely to meet their needs and requirements at each brief.
Why revive a business relationship
Knowing why it can be so beneficial to revive dead accounts with unique payment terms is crucial to fully understand. In doing so, you will find that you are far more motivated to do so when undertaking the task. That motivation should translate into more success in helping drum up business out of those accounts in the future.
Obviously, offering a client unique payment terms is ultimately done to help improve your profits. However, sometimes, it can be tempting to chase new business with your standard fee structure as offering an old client unique payment terms can sound so counterintuitive as the assumption is that it is detrimental to your profit margins.
Those payment terms do not necessarily have to be just cut price fees however. You can structure those fees in a way whereby you still receive all your fee – perhaps just over a longer term, or with a payment contingent on a candidate staying in a role for a certain period of time. Or you can look at different ways to be paid. But doing so can give you the appearance that you are offering your services in a more affordable way. As a result, your client is more likely to use your services again.
Taking a proactive approach and initiating negotiations with a client is always a good idea. It demonstrates that you are a firm that thinks outside the box to help solve a firm’s recruitment needs. You immediately help strengthen your relationship as a consequence with a client. That all important communication is likely to improve even further therefore and, then, not only will you be able to hit briefs more consistently, your client is far more likely to use your services again and again.
The two reasons above make for compelling motivation from just the surface, but the crucial element to remember in both of them is that they both encourage repeat business. When taken in conjunction with one another, you can really improve your chances of increasing return business, which then translates into a better bottom line. Plus, you don’t have to waste time or funds pitching for new business. Repeat business is brilliant as it is far more cost efficient and productive to a recruitment agency as a whole.
Unique payment terms for dead accounts
Understanding there are other benefits to reviving dead accounts with better rates than sheer profit can help drive change at your firm more effectively. However, do remember that all of those benefits will in turn, help drive higher profits even further.
Work together with your clients to see how your firm can answer their recruitment needs more closely, as well as seeking payment in a way that works for them – and you. You could find that one of your biggest cost savings and improved efficiencies is the ability to materially reduce chasing new business leads – further improving those all important profits.