Email in AR B2B Communication
In B2B, AR teams use email for:
- Sending invoices, payment reminders, and overdue notices to customers.
- Sharing detailed account statements, payment history, and balance confirmations.
- Managing customer disputes, clarifications, and providing status updates on claims.
- Requesting, verifying, or updating credit information and associated documentation.
- Handling inquiries related to payment methods, schedules, or transaction records.
- Sending proactive notifications about upcoming due dates or policy changes.
- and many other uses
In fact, email remains the mainstay of communication with customers. And this trend shows no signs of slowing. According to research by Radicati (radicati.com), annual business email volume is projected to grow by 3% per year.
Email’s versatility and familiarity make it indispensable to customers. It’s a direct, quick, and widely accepted channel for most customer interactions. However, its convenience comes with challenges, particularly in managing high volumes of email efficiently.
Alternatives to Email: Portals
Many AR departments have turned to alternatives for customer communication. The most prominent solution is customer portals. These platforms enable customers to do most of what can also be done with emails, such as viewing and downloading invoices, paying, logging and tracking disputes, and updating contact and payment details.
From the AR department’s perspective, portals streamline operations and promote self-service, reducing reliance on manual email handling. However, customer portals come with their own challenges:
- Cost: Setting up and integrating portals with ERP systems can be expensive and complex, and often lead to limited functionality due to the complexity.
- Security: Authentication and user management require robust solutions.
- Customer Resistance: Particularly in B2B, customers / buyers are often reluctant to adopt multiple supplier portals. From their perspective, they have to manage numerous logins, interfaces, and systems. And if the supplier is only an occasional supplier, they are even more reluctant to submit to such portals. Unsurprisingly, adoption rates and maybe more importantly, customer satisfaction with portals is moderate.
Another option is third-party “many-to-many” portals, like Taulia, Ariba or Coupa, which connect multiple sellers and buyers. While these aim to simplify transactions, their fragmentation across various suppliers limits their effectiveness from a buyer point of view.
As a result, and unsurprisingly, many customers still prefer email for its simplicity and speed, and in some cases simply ignore the existence of portals.
Introducing Fintamo Billing Email Steward (BES)
This is where BES steps in. Not as a replacement for portals or other communication methods, but as a bridge to support customers who continue to rely on email—while helping AR teams manage costs and workloads efficiently.
BES automates responses to customer emails, reducing routine tasks for AR teams. Here’s how it works:
- ERP Integration: BES connects seamlessly with leading ERP systems like SAP, Oracle, and Microsoft, enabling it to handle common customer requests such as:
- Providing invoice copies.
- Sharing AR statements.
- Communicating about disputes.
- Updating master data (for some ERPs).
- Smart Shared Email Box Handling: Many AR teams use shared email boxes, and BES is the perfect companion for this as it categorizes and labels emails in such a way that the human members of the team can easily follow through. BES also forwards emails to the right team member when necessary and marks emails as resolved or pending. It can also recognize tone, ensuring that sensitive emails from upset customers are immediately routed to human agents.
- Customizable Responses: BES can be tailored to match your preferred tone of communication—formal, casual, or anywhere in between. You can even customize the tone by customer.
- Collaborative Automation: For unclear emails, BES asks follow-up questions, acting like a proactive team member. In some cases, it fully automates replies; in others, it drafts a response for a human to review and send.
Advantages of BES
The benefits of using BES are manifold:
- Time Savings: By automating routine email tasks, AR teams can focus on higher-value activities like collections and relationship management.
- Customer Satisfaction: Quick, accurate responses improve customer experience, fostering loyalty and repeat business.
- Faster Payments: Providing customers with the information they need—such as invoices or account statements—expedites payment processes, directly impacting cash flow.
- Improved DSO: BES helps reduce Days Sales Outstanding (DSO) and therefore lowers the cost of capital.