Still treating all customers the same in your collections process?
If your AR team is sending identical payment reminders to every customer—whether they always pay on time or are chronically late—you’re leaving money on the table and wasting resources.
The solution? Smarter segmentation and automation.
By segmenting customers based on payment behavior and automating targeted follow-ups, businesses can:
✔ Prioritize late payers without frustrating reliable customers
✔ Improve cash flow and reduce DSO without extra manual effort
✔ Streamline collections through automation instead of scattered manual tracking
This playbook will guide you through how to segment customers, automate collections, and enforce structured escalation paths using Centime’s AR automation workflows.
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Why AR Segmentation Matters
Many mid-market businesses rely on manual tracking and NetSuite’s basic dunning emails, leading to:
- No prioritization – AR teams follow up on every overdue invoice equally, regardless of the customer’s past behavior.
- Inconsistent tracking – Collections notes are scattered across NetSuite and spreadsheets, making follow-ups difficult.
- Poor customer experience – Customers who normally pay on time receive the same escalation treatment as chronic late payers.
A segmented collections strategy ensures that the right customers get the right level of follow-up, improving efficiency and relationships.
Step 1: Define AR Customer Segments
To create an effective collections workflow, start by categorizing customers based on their payment history:
| Segment | Payment Behavior | Recommended Follow-Up Strategy |
|---|---|---|
| Reliable Payers | Consistently pay on time or early | Send proactive thank-you emails to maintain goodwill. |
| Occasionally Late | Miss payment due dates occasionally but catch up within a short window | Gentle reminders before due dates and softer escalation paths. |
| Chronic Late Payers | Consistently pay late, often requiring multiple follow-ups | Stricter reminder cadence and earlier escalations. Consider offering early payment discounts. |
| High-Risk Payers | Frequently overdue with large outstanding balances, potential bad debt risk | Immediate high-priority escalations, potential credit review. |
By segmenting payers, you can prioritize high-risk accounts while keeping reliable customers engaged without unnecessary friction.I’m
Step 2: Automate Targeted Workflows Based on Payment Behavior
Once you’ve identified payer segments, the next step is automating follow-ups based on invoice or customer behavior.
Invoice-Level vs. Customer-Level Workflows: What’s the Difference?
📌 Invoice-Level Workflows
- Triggered by invoice due dates
- Sends reminders for specific overdue invoices
- Ideal for detailed, invoice-specific tracking and follow-ups
📌 Customer-Level Workflows
- Triggered on a set schedule (weekly, biweekly, monthly)
- Not tied to specific invoices but instead to overall customer behavior
- Ideal for customers with multiple outstanding invoices
With Centime’s AR automation, businesses can build both types of workflows to ensure the right follow-up at the right time.
See Centime in action
Our innovative AR, AP and business banking solutions are powerful alone, and even better together.
Schedule a tailored demo with a Centime expert.
Step 3: Implement Invoice-Level Workflows for Overdue Invoices
Invoice-level workflows allow businesses to automate invoice reminders and escalations without manually tracking each overdue bill.
How to Set Up an Invoice-Level Workflow in Centime
1️⃣ Go to ‘Receivables’ → ‘Settings’ → ‘Workflows.’
2️⃣ Click ‘Add New Workflow.’
3️⃣ Select ‘Invoice’ for payment reminders.
4️⃣ Assign an AR contact, recipient for internal notifications, and a default task assignee.
5️⃣ Set up a Workflow Schedule to send actions before and after the due date:
✔ Before Due Date: Send a reminder email 3 days before due.
✔ Day of Due Date: Send a same-day notification if unpaid.
✔ After Due Date: Automate internal alerts and escalation steps (e.g., AR manager notification at 7 days overdue).
📌 Bonus: Attach invoice PDFs directly to emails for faster resolution.
Result? Customers receive automated, timely reminders without your AR team manually chasing payments.
Step 4: Use Customer-Level Workflows to Streamline Recurring Follow-Ups
For customers with multiple invoices, a customer-level workflow ensures regular, predictable communication without relying on invoice due dates.
How to Set Up a Customer-Level Workflow in Centime
1️⃣ Go to ‘Receivables’ → ‘Settings’ → ‘Workflows’ → ‘Customer Segment Workflows.’
2️⃣ Click ‘Create New Workflow.’
3️⃣ Choose ‘Customer-Level’ as the campaign type.
4️⃣ Set the frequency (Weekly, Bi-Weekly, or Monthly).
5️⃣ Configure action settings:
✔ Reminder Emails – Notify customers about unpaid invoices.
✔ Internal Notifications – Alert your AR team of overdue balances.
✔ Threshold Conditions – Set rules like "Only send reminders if overdue balance is greater than $10,000."
Example Use Case:
A chronic late payer might get an invoice-level escalation every time they miss a payment, while an occasional late payer could be included in a monthly customer-level reminder instead of receiving frequent dunning emails.
📌 Key Benefit: Customer-level workflows prevent over-notifying reliable customers while keeping at-risk accounts in check.
See Centime in action
Our innovative AR, AP and business banking solutions are powerful alone, and even better together.
Schedule a tailored demo with a Centime expert.
Step 5: Automate Auto-Pay for Reliable Customers
For businesses offering auto-pay, Centime automates the entire collections process:
✔ Auto-enrollment – Auto-pay customers are automatically assigned to an auto-pay workflow.
✔ Trigger Payments on Specific Dates – Payments can be tied to the invoice date, due date, or last day of an early discount window.
✔ Customizable Auto-Pay Templates – Businesses can send customized reminders confirming upcoming payments.
📌 Best Practice: Enroll Reliable Payers in an auto-pay workflow to eliminate manual invoicing while maintaining positive customer relationships.
Step 6: Track and Optimize Collections Performance
To continuously improve collections, businesses should monitor:
📊 Days Sales Outstanding (DSO) – How long it takes customers to pay invoices.
📊 Collection Effectiveness Index (CEI) – The efficiency of your AR team in collecting outstanding invoices.
📊 Segmented Payment Trends – Identify customers who are shifting between reliable and late payment behaviors.
📌 Centime’s AR dashboards provide real-time insights, making it easy to refine workflows over time.
Final Thoughts: Smarter AR Starts with Segmentation & Automation
🚀 Businesses that automate AR segmentation see faster collections, reduced DSO, and a more predictable cash flow.
🔹 Segment customers based on past payment history
🔹 Use invoice-level workflows for overdue invoices
🔹 Use customer-level workflows for recurring communication
🔹 Enroll reliable payers in auto-pay for a seamless experience
🔹 Monitor collections metrics to refine strategies
Want to see Centime’s AR automation in action? Book a demo today and transform your collections process.