Differences between CRM and collection software: Which one to choose?
Posted: Mon Dec 23, 2024 6:27 am
In addition to Excel, other non-specialized tools that some companies often use to manage their portfolio are CRM software . However, how effective are they? Or is it better to choose a collections software ? In this Moonflow post we tell you what their key differences are.
What will you find in this text?
Product functionality
The workflow
Reasons why a debt collection CRM is not the best option to manage your accounts receivable
1. Collection CRMs cannot capture all the data from the collection process
2. CRMs do not offer predictive analysis of their platform data
3. They do not facilitate portfolio segmentation based on the collection process
4. Increases the risk of error in debt collection management
Product functionality
The main difference between the two alternatives is the degree of buy uk email list that each one has for managing accounts receivable. In this sense, you should consider the functionality of a CRM and a collection software .
5-Collect more, improve your collection management-banner
In the first case, it is a platform created to manage the relationship with clients (not exclusively for collection purposes), while, in the case of debt collection platforms , they are made for this purpose.
Now, in both cases, both the CRM and the collection software can have functionalities from the other program. That is, CRM can have collection functionalities and a collection platform , CRM functionalities .
So, is it advisable to use a CRM to have more efficient collections ? Not necessarily, since although at the beginning it may be more efficient than using traditional methods (Excel, paper sheets), the truth is that over time it will be limiting and as we said at the beginning, it does not have all the functionalities of a program specialized in accounts receivable .
The workflow
Another key factor that differentiates both solutions is the integrated workflow. In a CRM, the workflow is designed to manage customer interactions in general, which may include collections-related tasks , but it is not necessarily optimized specifically for that purpose.
On the other hand, debt collection software usually has an integrated workflow, which is designed to manage the debt collection process efficiently and effectively from start to finish. In addition, in debt collection software , the workflow can include features such as automatic payment reminders, tracking overdue invoices, generating delinquency reports, among others. These functionalities are designed to streamline and automate the debt collection process, which can result in more effective management of accounts receivable.
What will you find in this text?
Product functionality
The workflow
Reasons why a debt collection CRM is not the best option to manage your accounts receivable
1. Collection CRMs cannot capture all the data from the collection process
2. CRMs do not offer predictive analysis of their platform data
3. They do not facilitate portfolio segmentation based on the collection process
4. Increases the risk of error in debt collection management
Product functionality
The main difference between the two alternatives is the degree of buy uk email list that each one has for managing accounts receivable. In this sense, you should consider the functionality of a CRM and a collection software .
5-Collect more, improve your collection management-banner
In the first case, it is a platform created to manage the relationship with clients (not exclusively for collection purposes), while, in the case of debt collection platforms , they are made for this purpose.
Now, in both cases, both the CRM and the collection software can have functionalities from the other program. That is, CRM can have collection functionalities and a collection platform , CRM functionalities .
So, is it advisable to use a CRM to have more efficient collections ? Not necessarily, since although at the beginning it may be more efficient than using traditional methods (Excel, paper sheets), the truth is that over time it will be limiting and as we said at the beginning, it does not have all the functionalities of a program specialized in accounts receivable .
The workflow
Another key factor that differentiates both solutions is the integrated workflow. In a CRM, the workflow is designed to manage customer interactions in general, which may include collections-related tasks , but it is not necessarily optimized specifically for that purpose.
On the other hand, debt collection software usually has an integrated workflow, which is designed to manage the debt collection process efficiently and effectively from start to finish. In addition, in debt collection software , the workflow can include features such as automatic payment reminders, tracking overdue invoices, generating delinquency reports, among others. These functionalities are designed to streamline and automate the debt collection process, which can result in more effective management of accounts receivable.