Remind Members about Timely Payments - Debt Collection Use Case

Introduction

Handling overdue payments and debt collection is vital in business. It can be complex and requires good organization. Success in debt collection can significantly impact a company's performance and revenue.  This is an additionally paid module so please contact sales if you wish to use this module.

The Debt Collection module provides the clubs with insights into overdue payments and due dates. What makes it special is that clubs can adjust their debt collection process into stages to fit their own needs and rules. These steps can be adjusted to fit particular requirements. For example, you can group debtors by their outstanding balances, current situation, total debt, previous collection actions, or days past the due date. This flexibility makes debt collection efforts more efficient and focused.

• This use case article provides an example of the set-up and usage of Events in Automation to manage members who haven't paid their instalments on time.

• This article is for all club employees who are responsible for advanced member management, especially those dealing with debtors management. All those who are monitoring payments and transactions should be interested in reading this article and analyzing the below case study. 

Before you start

• The starting point for this configuration should be a thorough study of articles about debt collection. Additionally, refresh your knowledge about Automation. 
• Make sure that the email notification template and from e-mail field in Automation have been configured.

Use case

Assumptions

• The debt collection process will be divided into four stages.
• The first debt notification will be sent to the member on the second day of the debt, the second after 14 days, the third after the 31st day of debt, and the fourth on the 61st day.
• All debt collection stages consist of three events.
• The first event is the change to a higher debt collection stage, followed by system actions such as adding a tag or blocking club access. The third event is sending a reminder message to the member.

Instruction

How to set up Automation Rules triggering the debt collection process start?

STAGE 1

There are three steps that need to be set up in the Automation in PGM:

1. Change Debt collection stage - set a time period during which the members will be in Stage 1 - STEP 1

In our example, it's 2-14 days.

2. Automatically assign Tags to members entering the first stage of debt collection - STEP 2

3. Create email notification - it will be sent to the members after transitioning to the first debt collection stage - STEP 3

How to set it up?

STEP 1

1. To change the debt collection stage, enter the following parameters:

• Name: enter the Event Name.
• Action: select Change debt collection stage.
• Event: select the Number of days in debt increased. 

2. Set the Conditions to:

• Match type: select Match all.
• NUMBER_OF_DAYS_ON_DEBT: select Greater than or equal 15.
• NUMBER_OF_DAYS_ON_DEBT: select Less than or equal 31.
• USER_IS_ALREADY_IN_DEBT_COLLECTION_PROCESS: select No.

3. Set up Action Details: 

• Debt collection stage: select Stage 1.

STEP 2

Before creating this event, you need to create the tag in PGM. Go to this article to learn how to do it. 

1. To add tags, set the following parameters:

• Name: enter the Event Name. 
• Action: select Tag.
• Event: select Debt collection step changed.

2. Set the Conditions to:

• Match type: select Match all.
• Token: select CURRENT_STAGE.
• Condition: select Equals.
• Value: select Stage 1.

3. Set up Action Details: 

• Action: select Add Tag. 
• Tag: select Debt collection.

STEP 3

1. To send email notifications to members, set up the following parameters:

• Name: enter Event Name. 
• Action: select Notification.
• Event: select Debt collection step changed.

2. Set the Conditions to:

• Match type: select Match all.
• Token: select CURRENT_STAGE.
• Condition: select Equals
• Value: select Stage 1.

3. Set up Action Details: 

• Chanel: select E-mail.
• From email: select Email address.
• Notification recipients: select Users.
• Notification content: select content template.

We recommend using the following Tags to customize email: CURRENT_DEBT, USER_NAME, CURRENT_STAGE.

STAGE 2

The second stage of debt collection consists of three steps:

1. Transition the debt collection stage from the first to the second - STEP 1.
2. Add a blocking note preventing the debtor from entering the club - this process is run automatically by the system - STEP 2.
3. Send payment reminder via SMS - STEP 3. 

By choosing SMS channel, the open rate will be significantly higher, leading more people to settle their debts.

How to set it up?

STEP 1

1. To change the debt collection stage, set up the following parameters:

• Name: enter the Event Name.
• Action: select Change debt collection stage.
• Event: select Number of days in debt increased. 

2. Set the Conditions to:

• Match type: select Match all.
• NUMBER_OF_DAYS_ON_DEBT: select Greater than or equal 15.
• NUMBER_OF_DAYS_ON_DEBT: select Less than or equal 31.
• USER_IS_ALREADY_IN_DEBT_COLLECTION_PROCESS: select Yes.

3. Set up Action Details: 

• Debt collection stage: select Stage 2.

STEP 2

1. To add the blocking note, set up the following parameters:

• Name: enter the Event Name.
• Action: select Add user note.
• Event: select Debt collection step changed.

2. Set the Conditions to:

• Match type: select Match all.
• Token: select CURRENT_STAGE.
• Condition: select Equals
• Value: select Stage 1.

3. Set up Action Details: 

• Block access to club: select Yes.
• Note content: select Debt collection - Stage 2.

STEP 3

Make sure you have the SMS option activated on your database. In this article, you will find information on how to do it. 

1. To Send SMS notifications to members, set up the following parameters: 

• Name: enter the Event Name.
• Action: select Notification.
• Event: select Debt collection step changed.

2. Set the Conditions to:

• Match type: select Match all.
• Token: select CURRENT_STAGE.
• Condition: select Equals
• Value: select Stage 1.

3. Set up Action Details: 

• Chanel: select SMS.
• Notification recipients: select Users.
• Send notifications from/ after: set this condition to send SMS messages during morning hours. 
• Notification content: enter SMS content.

Remember, if you exceed 153 characters, the SMS will cause multiple SMS charges per 153 characters sent

STAGE 3

The third stage of debt collection consists of three steps:

1. Transition the debt collection stage from the second stage to the third - if the contract remains unpaid for 32 days - STEP 1.
2. Adding contract transaction to charge a penalty of 10 Euro - STEP 2.
3. Send another payment reminder via Email - STEP 3. 

STEP 1

1. To change the debt collection stage, set up the following parameters:

• Name: enter the Event Name.
• Action: select Change debt collection stage.
• Event: select Number of days in debt increased. 

2. Set the Conditions to:

• Match type: select Match all.
• NUMBER_OF_DAYS_ON_DEBT: select Greater than or equal 32.
• NUMBER_OF_DAYS_ON_DEBT: select Less than or equal 60.
• USER_IS_ALREADY_IN_DEBT_COLLECTION_PROCESS: select Yes.

3. Set up Action Details: 

• Debt collection stage: select Stage 3.

STEP 2

1. To add the contract transaction to charge a penalty of 10 Euro, set up the following parameters:

• Name: enter the Event Name.
• Action: select Add contract transaction.
• Event: select Debt collection step changed.

2. Set the Conditions to:

• Match type: select Match all.
• Token: select CURRENT_STAGE.
• Condition: select Equals
• Value: select Stage 3.

3. Set up Action Details: 

• Operation type: select Charge.
• Transaction type: select the type of transaction.

In this case, we chose Other.

• Transaction category: select Debit transaction.
• Transaction date: select Event Date.
• Gross amount: add the amount of the penalty fee.

In this case, we choose 10 EURO.

• Vat rate: select the proper tax.
• Descriptions: add the description: Penalty for non-payment of membership - STAGE 3. 

STEP 3

1. To send the email notification to the members, set up the following parameters: 

• Name: enter the Event Name.
• Action: select Add contract transaction.
• Event: select Debt collection step changed.

2. Set the Conditions to:

• Match type: select Match all.
• Token: select CURRENT_STAGE.
• Condition: select Equals
• Value: select Stage 3.

3. Set up Action Details: 

• Chanel: select E-mail.
• From email: select email address.
• Notification recipients: select Users.
• Notification content: add content template.

We recommend using these tags to customize email: CURRENT_DEBT, USER_NAME, CURRENT_STAGE.

STAGE 4

The last stage of debt collection consists of three steps:

1. Transition the debt collection stage from the third to the fourth - if the contract remains unpaid for 61 days - STEP 1.
2. Adding another contract transaction to charge the penalty fee - STEP 2.
3. Send another payment reminder via Email - STEP 3. 

STEP 1

1. To change the debt collection stage, set up the following parameters:

• Name: enter the Event Name.
• Action: select Change debt collection stage.
• Event: select Number of days in debt increased.

2. Set the Conditions to:

• Match type: select Match all.
• NUMBER_OF_DAYS_ON_DEBT: select Grater than or equal 61.
• USER_IS_ALREADY_IN_DEBT_COLLECTION_PROCESS: select Yes.

3. Set up Action Details: 

• Debt collection stage: select Stage 4.

STEP 2

1. To add the contract transaction to charge a penalty of 10 Euro, set up the following parameters:

• Name: enter the Event Name.
• Action: select Add contract transaction.
• Event: select Debt collection step changed.

2. Set the Conditions to:

• Match type: select Match all.
• Token: select CURRENT_STAGE.
• Condition: select Equals
• Value: select Stage 4.

3. Set up Action Details: 

• Operation type: select Charge.
• Transaction type: select the type of transaction.

In this case, we chose Other.

• Transaction category: select Debit transaction.
• Transaction date: select Event Date.
• Gross amount: add the amount of the penalty fee.

In this case, we choose 10 EURO.

• Vat rate: select the proper tax.
• Descriptions: add the description: Penalty for non-payment of membership - STAGE 4. 

STEP 3

1. To send the email notification to the members, set up the following parameters: 

• Name: enter the Event Name.
• Action: select Add contract transaction.
• Event: select Debt collection step changed.

2. Set the Conditions to:

• Match type: select Match all.
• Token: select CURRENT_STAGE.
• Condition: select Equals
• Value: select Stage 4.

3. Set up Action Details: 

• Chanel: select E-mail.
• From email: select email address.
• Notification recipients: select Users.
• Notification content: add content template.

We recommend using these tags to customize email: CURRENT_DEBT, USER_NAME, CURRENT_STAGE.

How to exit the debt collection process?

If a club member pays for the contract, the blocking note and tag will be automatically removed from their profile. They will automatically exit the debt collection process. However, you should first set up the debt collection exit process. Below, you will find how to properly set up the Automation rules to enable exiting debt collection.

STEP 1

Remove the Tag after a successful transaction.

 1. Set up the following parameters: 

• Name: enter the Event Name.
• Action: select Tag.
• Event: select Debt collection process exited.

2. Set up Action Details: 

• Action: select Add Tag.
• Tag: select Debt collection. 

STEP 2

Unlock access to the club blocked by note.

 1. Set up the following parameters: 

• Name: enter the Event Name.
• Action: select Unlock access to club blocked by user note.
• Event: select Debt collection process exited.

2. Set up Action Details: 

• Note content: enter the note content.