Motivating Customer Payment via a Payer Rating System

Unfortunately, getting customers to pay their invoices (and on time) can be a challenge. There’s no sure-fire way to get them to pay every time, on time —but there are ways to motivate them.

One way is by using a tool incorporated in Esker’s Collections Management solution: payer rating. In some ways, it’s similar to a credit score, but much more transparent in the way it is calculated. By adding the total days past due for all paid invoices and then dividing that by the total number of paid invoices, the average days late is calculated, and thus, a payer rating. Customers are then categorized based on their average days late from best to worst: excellent, good, fair and poor.

payer rating


Right about now you may be thinking “How is that motivating for customers?”

Companies have the option of displaying that payer rating within automated payment reminder emails, painting a clearer picture for customers on their payment history performance. Some customers may not even realize that they have a bad track record, leaving them bewildered by their status. But that’s not a bad thing!

In a recent call with a company, they spoke to us about their experience including payer ratings in their payment reminder emails. Soon after they had begun to include them, they received a call from a customer shocked at their “poor payer” rating. The customer didn’t understand why they had received that rating, but once it was explained, vowed to improve to “excellent payer” status.

Nobody likes hearing that they aren’t doing well. When they see that they have a less than satisfactory rating, it motivates them to do better.

Just think about it: You open an email with your account statement enclosed and you see above it that you have been given a “poor payer” rating. Would you be satisfied with that? Competition is extremely motivating, and although the competition is oneself in this case, it doesn’t diminish that motivation.

Give people something to strive for when it comes to making their payments and you’ll likely be pleased with the outcome!

Samantha Heavner

As Esker’s Creative Coordinator, Samantha both writes and designs marketing content aimed to educate and engage audiences on the benefits of automated business processes. Outside of work, you may catch her cheering on the Chicago Blackhawks, playing with with her dog or tackling a new DIY project.

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4 thoughts on “Motivating Customer Payment via a Payer Rating System

  1. I like the idea, however once we used this, our customers became very upset in how that showed up on their emails and we had to remove it.

    1. Hi Ginger, thanks for your feedback! It is definitely important to gauge your company’s relationship with your customer-base during the setup of your collections strategy. Not all of the available tools in Esker’s AR solution are right for every company, but displaying the payer rating has proven to motivate the payer for many of the companies that are utilizing this feature. A poor payer rating has proven to foster dialogue where the A/R rep can apply his or her expertise in customer-relations and work with that payer to get back on track. Hoping this provides more insight, and as always, we appreciate your feedback!

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