Question:
One of our customers declared bankruptcy and stopped paying their bills. We subsequently disconnected this customer. As a clarifying question, since this was out of our control, should we count this disconnect in our net install total.
Answer:
We calculate net installs as the change in billable run rate from one calendar month to the next. If the customer was billed last month, and not billed this month then the change in billing must be counted as a disconnect.
These are disapointing. Everyone works really hard to hit the monthly net install targets. Then, the Controller calls and tells you to put through a disconnect ASAP.
It is important to capture reason codes with disconnects. This reason code should be bankruptcy. The finance team should be tracking these to understand their effectiveness at using credit checks to minimize the disconnects due to customer bankruptcies.
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