Invoices—a neglected marketing opportunity for SMEs

All companies raise invoices for securing payments. For most of us, billing is purely an accounting function but there are opportunities for marketers of small and medium businesses in it.

Most marketers ignore its potential. They do the sales and business and let the bean counters arrange to collect the money and earn their salaries—this is the argument made by most marketing and sales people. They should know that sales or marketing activity does not end until the money is realised.

Most SMEs, especially those in services business such as chartered accountants, management consultants, pest control, lawyers and tax consultants, regard billing as an accounting function.

This spells missed opportunities. Professional services such as law and accounting are prime losers. Bills typically read something like: "For professional services rendered: Rs 50,000."

At best, a bill specifies a little more detail such as "income tax preparation". Some clients are surprised by the amount requested, ignorant of the effort expended.

“I suspected that the chartered accountant who prepared the company registration formalities charged me a bit high at Rs 60,000 when all he had to do was file whatever forms I had filled up and given direction to”. Perhaps “my accountant” could do well to explain the effort that went into making the memorandum, articles and application forms and reassure me.

Details please

I propose detailed bills precisely for that reason—statements that provide details of the work.

For example, "income tax preparation" might be divided into "meet to discuss tax position, evaluate documentation provided, research applicable new tax laws, complete forms 1, 2 and 3, compute tax liability, and meet to present filing package."

As this description suggests the accountant expended some serious sweat, the client is more likely to perceive value for one's accounting rupees.

Another effective technique, particularly for consultants, is stating the results obtained for the client. But, I bet very few would be willing to do this, especially since most of them offer armchair consulting.

For example, a public relations consultant might indicate the number of column inches commanded during the billing period. A risk-management consultant might point out the amount saved in insurance premiums through a coverage audit.

Another often-overlooked opportunity is stating the extent of free services rendered during the billing period. All too often I have heard complaints about a lost customer, like, "He didn't even appreciate all our extra hours!" Odds are that the defecting client was unaware.

A further point: the key contact in the client organisation should receive a copy of the expanded statement, even when the original must be sent to the accounts department.

Sure, the accounting will pay pre-authorised bills, but it does not call the shots on contract renewals. Sometimes more than one person within the organisation should routinely be made aware of the service provider's value. But to avoid confusion, duplicate bills should be marked, "Copy: for your information only. The original sent to accounting."

Decision-makers who receive duplicate or original bills also respond to amenities. It does not take much effort to type a personalised comment on a client's bill, like, "We're honoured that you selected us to design your new facilities. Here's to increased success!"

It is much better than automated rhetoric "We appreciate this opportunity to serve you." Just try this next time and see the response.

In sales promotion, many firms have yet to use the power of statement stuffers. Banks, credit card service providers and cellular phone companies have used them for years but the possibilities are endless.

Companies providing security guards to businesses can promote employee background checks. Accountants can insert leaflets on personal financial planning, and dentists can get patients salivating over cosmetic procedures through smiling photos.

State electricity boards should start using this idea to make them more profitable. They could easily offer additional services. If you are skeptical, wait till they get privatised.

A quick survey 

Beyond this, billing offers the opportunity to conduct informal surveys. I recommend a few brief questions on an anonymous post-paid postcard to survey customers' interest in contemplated products or services.

Though not scientific, it can provide a rough yardstick for future action. A small business that can’t afford a huge budget for market research, this is a good solution.

Stuffers and inserts also can be used to solicit client referrals and to cross-promote with (or sell exposure to) firms in related fields.

For example, an equipment leasing company can team up with an ally providing electronic security systems. When things are in email format, restrict such attachments to one at the most.

When it comes to billing, do not be inbred. Question everything about your current bills, not only in terms of the above suggestions but also on the basics.

Do not dismiss billing as a mere housekeeping activity. Make it easy for the customer to pay—and to justify a continued relationship.