Point Of View – Happy customers pay on time: How poor customer satisfaction harms cash flow
Studies show companies that respond to customer problems promptly have more satisfied customers than those that do not. In an increasingly difficult economic environment, many organizations recognize the importance of providing a positive experience to throughout the entire customer order process. After the sale is made, service problems in the form of billing errors or delivery problems greatly affect a customer's decision to repeat business as well as pay on time. Such delays in the collection process can impact a firm's ability to manage money and meet short term obligations.
In a recent Q&A session, we sat down with working capital experts, Robert Orr and Rohit Sinha, to discuss the relationship between customer satisfaction and cash flow.