Membership revenue is the lifeblood of your business, so implementing a good strategy to optimise collections is a smart move. ClubWise has highlighted 5 effective ways to help you do this.
A re-presented Direct Debit is a debit which has previously been returned unpaid by the bank and is then presented again for collection. Represents are an important part of your club’s billing process and can be the simplest path to successful collection, particularly if the unpaid direct debit was due to a timing issue and funds were not available at the time of original collection, which happens more often than you think!
2. Encourage Members to Reinstate Cancelled Direct Debits
Providing the ability for your members to reinstate their cancelled Direct Debits via their member app or online reduces administration time. Most importantly, it improves the number of successful Direct Debit collections as more members will have a valid Direct Debit instruction in place.
3. Online and In App Arrears Payments
If your member falls into arrears, how do they bring their account up to date? In this day and age, it’s a great idea to offer an online or in app arrears payment facility, which your members can access easily at any time, avoiding any delays and potentially embarrassing conversations with club staff.
4. Late Fees
Another way to improve your cash flow and optimise collection rates is to introduce a late fee. It’s important that the late fee is fair and proportionate to the monthly membership fee. ClubWise offers customers a fully managed late fee option, which also works to improve your bottom line through a ‘revenue share’ model.
5. Alternative Payment Method – Payment Guarantee
When your member signs up online or in app, it’s a great idea to ask for an alternative payment method, which can be used in the event the direct debit fails. This is usually a debit or credit card. ClubWise is currently developing this feature, whereby the debit or credit card will automatically be charged if any membership payments remain outstanding beyond the due date, making this an extremely effective way to maximise membership collections.