Mr. Muhamed Muneer

The title might be a little misleading. Billing is purely an accounting function, right? Why should it be a marketing function and hence an opportunity? This is pretty obvious, isn't it? Marketing people do the sales and business, let the bean counters arrange to collect the money and earn their salaries. This is the argument of most marketing and sales people. Little do they realise that sales or marketing activity does not end until the money is realised.

The title may be misleading on another front, too. Readers may be wondering if this is all about advertising on bills as some of the articles had suggested in this column. Well, the inconvenience is regretted. I thought I could use some marketing for this column so that you would read deeper!

The lighter side apart, most small and medium firms, especially those in services marketing such as chartered accountants, lawyers and tax consultants, regard billing as a mere accounting function. This often spells missed opportunities. Professional services such as law and accounting are prime losers. Bills typically read something like, "for professional services rendered - Rs 11000." At best, a bill specifies "income tax preparation." Meanwhile, some clients are unpleasantly surprised by the amount requested, ignorant of the effort expended. I have suspected that the chartered accountant who prepared the company registration formalities charged me a bit high at Rs 5000 when all he had to do was file whatever forms I had filled and given direction to. Perhaps my accountant could do well to explain the efforts he had put in making the memorandum and articles and application forms. Even if I had given him the directions to cover under the articles.

That is why I propose expanded bills: statements that provide solid detail about 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." Because this description suggests the accountant exerted 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 one. 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 of insurance premiums saved via a coverage audit.

Another often-overlooked opportunity is stating the extent of gratis 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 the defecting client was totally 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 accounting. Sure, 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 clearly marked, "Copy: for your information only. 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!" This beats such trite automated rhetoric as, "We appreciate this opportunity to serve you." Just try this next time, and see the response.

In the area of 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. In fact state electricity boards and telephone departments should start using this idea to make them more profitable. They could easily offer additional services. If you are sceptical about this, wait till they get privatised.

Beyond this, billing offers the opportunity to conduct informal surveys. I recommend a few brief questions on an anonymous post paid postcard to survey existing customers' interest in contemplated products or services. Although this approach is not scientific, it can provide rough yardsticks toward future action. For a small business that cannot afford huge monies for market research, this is a good enough 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 might team up with an ally providing electronic security systems.

The central message: 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.

Too many bills are hard to understand. The vendor's stock numbers are Greek to the customer who only recognises product descriptions. And some corporate clients prefer lengthy supply bills on disk or by electronic transmission. Do not dismiss billing as a mere housekeeping activity. Make it easy for the customer to pay--and to justify a continued relationship.

(By arrangement with Innovative Media)

Feedback and queries may be e-mailed to him directly at muneermuhamed@hotmail.com