Remind Me! 55% of Americans Want to be Notified One Week Before Bills Are Due, Survey Reveals

Lexop survey reveals more early-stage reminders and digital experience can significantly reduce late payments.

MONTREAL, March 28, 2023 /CNW/ - A recent survey of more than 1,100 American consumers who were late in paying their bills revealed how simple improvements to the billing & collections process could significantly reduce delinquency rates and motivate past-due customers to self-cure. "Behind on Bills: A 2023 Survey of Overdue US Consumers," was conducted by Lexop in February 2023 to explore past-due consumer behavior, identify payment patterns, and show how businesses could better assist their customers.

For 44% of respondents, keeping up with bills was the top financial priority of 2023, with 25% prioritizing paying down debt. This financial strain on consumers is evident when considering the impact of a delayed or missed paycheck, with 43% having to dip into their savings to make ends meet and 36% not having enough money to cover their bills. Businesses must consider their customers' financial realities when issuing bills and be proactive in providing alternative ways for them to manage payments, such as offering custom payment arrangements.

Interestingly, 60% of respondents reported that non-monetary reasons were causing them to fall behind on their bills. The majority (30%) forgot to pay the invoice, with others noting invoice errors (10%), expired pre-authorized payment methods (8%), not having access to bills (7%), or not receiving them at all (5%) cited as the most common reasons. The non-financial reasons for being late highlight the importance of providing customers with timely reminders and addressing process-related issues contributing to late payments.

When asked about their ideal notification schedule, 55% of respondents wanted a reminder one week before a bill is due; and another 22% wanted an additional reminder the day before the due date. The survey also found that 85% of overdue consumers paid within 30 days of the due date, and an overwhelming 60% paid their late bills within the first week. This finding is significant for businesses, as it suggests that they could easily improve cash flow and reduce the number of late payments by leveraging digital tools to send more frequent automated reminders to their customers.

Lastly, 73% of respondents said that a simplified digital experience would make paying their late bills easier, including more reminders sent via SMS and email, a streamlined online payment process, and one-click payment links. Notably, only 10% said traditional tactics like letters and collection calls are helpful. Companies looking to improve their collection rates must prioritize technology investments to meet consumer expectations for a simplified, self-serve digital payment experience.

"Collecting doesn't have to be complicated. It all comes down to getting the attention of your past-due customer and making it easy for them to pay," said Amir Tajkarimi, CEO & Co-Founder of Lexop. "Now more than ever, businesses must be proactive to succeed in their collections efforts. Technology is a great way to get ahead of the curve, making it easy to provide digital payment options, automate timely reminders, and offer flexible payment arrangements."

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About Lexop
Lexop is a financial technology company that helps organizations automate and scale their collections operations, significantly improving their self-cure rates and cash flow. Our technology streamlines the entire process, making it more efficient and cost-effective to recover outstanding funds than traditional methods. We provide an intuitive platform to build recovery campaigns with data analytics and an easy-to-use payment portal for past-due customers to pay without agent intervention. With Lexop, it's possible to improve recovery rates and maintain a positive relationship with your customers. Learn why Lexop is the ultimate tool for collecting past-due accounts at www.lexop.com.

SOURCE Lexop