%20(1).png)
In the world of debtor correspondence, the way you communicate can significantly impact whether an outstanding account is settled or ignored. Studies show that clear, professional, and empathetic communication increases the likelihood of payment. This blog explores best practices for drafting effective correspondence, focusing on what information should be included and how to set yourself apart from other creditors.
Tips to help you draft a personalised email
A debtor's financial obligations often extend beyond one creditor. When a debtor receives multiple payment requests, your communication must stand out to compel action. A study by Experian found that personalised emails improve transaction rates by six times compared to non-personalized messages.
Here’s what you need to consider when drafting an email to a parent for payment of an outstanding school fee account:
Clarity of the Problem and Required Action
Start by clearly stating the issue. The parent should immediately understand what the email is about:
The nature of the outstanding debt, being outstanding school fees.
The total amount due, broken down to show the capital amount, interest, and any other amounts owing.
The due date for payment of the outstanding school fees.
Consider starting the email as below:
Provide a Payment Plan Option
Offering flexibility can be a good plan in this situation, as the parent will most likely have more creditors to pay. If the parent cannot afford to pay in full, outline an alternative payment plan. Studies indicate that providing manageable payment options increases the likelihood of repayment. A further report by WordStream states that emails with a clear call to action (CTA) can boost response rates by up to 70%. Include specific details about:
Monthly installment amounts — provide options.
The duration of the payment plan.
Any interest associated with the plan.
Consider the below addition to the email:
Detail the Consequences of Non-Payment
Your correspondence should clearly explain what happens if the parent does not take action. Highlight the legal and financial repercussions, but maintain a professional and respectful tone. Include specific details about:
Potential listing with a credit bureau.
Accrual of additional interest.
Possible legal action.
Payment of legal fees once handed over.
Consider the below addition to the email:
Include All Financial and Contact Information
Provide the parent with everything they need to make payment of the outstanding school fees or contact you for assistance. Include specific details about:
The school bank account details, including reference codes.
Contact information for a specific person who can assist the parent with queries.
Any payment instructions or links to online payment platforms.
Consider the below addition to the email:
Set a Timeline and Next Steps
Establish a timeline for action and specify the next steps for both parties. This creates urgency and clarity. Include specific details about:
A deadline for payment or contact to set up a payment plan.
Follow-up actions if no response is received by the deadline.
Consider the below addition to the email:
Adopt the Right Tone
Your tone can make or break your communication. While it’s essential to be firm about the consequences of non-payment, your tone should also be empathetic and professional.
Research shows that 72% of debtors are more likely to respond positively to correspondence that acknowledges their situation.
Consider the below addition to the email:
Reinforce the Debtor’s Responsibility
End your correspondence by emphasising the importance of settling the outstanding school fee account, but do so respectfully. Express appreciation for their cooperation and encourage timely action.
Consider the below addition to the email:
Why personalisation of email correspondence create a reaction
Personalisation and Professionalism: Addressing the parent by name and tailoring the message to their situation demonstrates respect and seriousness.
Flexibility: Offering payment plans provides a practical solution, showing that you’re willing to work with the parent.
Transparency: Clearly outlining the debt (outstanding school fees), payment options, and consequences of inaction ensures there are no surprises.
Empathy and Support: A respectful tone can transform a potentially confrontational interaction into a collaborative effort.
The Competitive Edge
What sets your correspondence apart from other creditors? It’s the combination of professionalism, empathy, and clarity. While others may send generic demands, your message offers solutions, builds trust, and communicates consequences in a way that encourages action rather than avoidance.
In a competitive landscape where debtors often prioritise which accounts to settle first, your well-crafted correspondence can make the difference between a resolved account and one that lingers in default.
FAQs on Personalised Emails
Why is professional and clear correspondence important for school fee collections?
What key information should be included in an email about outstanding school fees?
How can offering payment plans improve collection success?
What consequences should be included in correspondence about non-payment?
How should financial and contact details be presented in the email?
Why is setting a timeline important for school fee collection emails?
What tone should be adopted in school fee collection emails?
How can you personalise correspondence to improve effectiveness?
What are the best practices for encouraging payment through email?
How can adopting these practices improve your school’s fee collections?
Conclusion
Effective debtor correspondence is a balancing act between firmness and empathy. By following these best practices, you can improve your chances of receiving payment while maintaining a positive relationship with the parent. A well-structured, professional, and empathetic approach not only helps resolve outstanding school fee accounts but also enhances your school’s reputation and credibility.
Daleen: daleen@jumpingfoxsoftware.com / 021 - 001 4758
Comments