For clarification, are you referring to an automatic late payment fee on an invoice? or are you looking for something else? Let me know and I can merge with with the existing thread so you can see questions, suggestions and updates from our team.
I can't speak for @Riz but I'd like the same thing. On a monthly recurring billing cycle, it's usually for a service and the invoices are generally the same each month unless the customer adds or changes services. Some customers will simply let things go without some additional motivation and then suddenly find themselves too far past due to catch up and end up changing service providers. To prevent that, a late fee creates a sense of urgency for the customer which keeps them from falling behind and that helps you retain customers. I know it seems odd that late fees would help you KEEP customers but that's the psychology behind it and it's been proven out very well.
Riz
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@Riz
For clarification, are you referring to an automatic late payment fee on an invoice? or are you looking for something else? Let me know and I can merge with with the existing thread so you can see questions, suggestions and updates from our team.
Thanks!
I can't speak for @Riz but I'd like the same thing. On a monthly recurring billing cycle, it's usually for a service and the invoices are generally the same each month unless the customer adds or changes services. Some customers will simply let things go without some additional motivation and then suddenly find themselves too far past due to catch up and end up changing service providers. To prevent that, a late fee creates a sense of urgency for the customer which keeps them from falling behind and that helps you retain customers. I know it seems odd that late fees would help you KEEP customers but that's the psychology behind it and it's been proven out very well.
Yes, an automatic late payment fee on an invoice.
Hey all, you may be interested in checking out this thread which addresses late fees!