AR Collections Playbook: How to Segment Slow vs. On-Time Payers

Still treating all customers the same in your collections process?
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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.

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The solution? Smarter segmentation and automation.

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By segmenting customers based on payment behavior and automating targeted follow-ups, businesses can:

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✔ 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

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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:

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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.

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A segmented collections strategy ensures that the right customers get the right level of follow-up, improving efficiency and relationships.

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Step 1: Define AR Customer Segments

To create an effective collections workflow, start by categorizing customers based on their payment history:

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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.

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By segmenting payers, you can prioritize high-risk accounts while keeping reliable customers engaged without unnecessary friction.I’m

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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.

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Invoice-Level vs. Customer-Level Workflows: What’s the Difference?

📌 Invoice-Level Workflows

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Triggered by invoice due dates
Sends reminders for specific overdue invoices
Ideal for detailed, invoice-specific tracking and follow-ups

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📌 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

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With Centime’s AR automation, businesses can build both types of workflows to ensure the right follow-up at the right time.

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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.

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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).

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📌 Bonus: Attach invoice PDFs directly to emails for faster resolution.

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Result? Customers receive automated, timely reminders without your AR team manually chasing payments.

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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.

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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."

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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.

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📌 Key Benefit: Customer-level workflows prevent over-notifying reliable customers while keeping at-risk accounts in check.

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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.

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📌 Best Practice: Enroll Reliable Payers in an auto-pay workflow to eliminate manual invoicing while maintaining positive customer relationships.

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Step 6: Track and Optimize Collections Performance

To continuously improve collections, businesses should monitor:

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📊 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.

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📌 Centime’s AR dashboards provide real-time insights, making it easy to refine workflows over time.

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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

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Want to see Centime’s AR automation in action? Book a demo today and transform your collections process.

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*All banking products and services available through Centime are provided by FNBO and are governed by the applicable agreements and related disclosures provided to you by FNBO. Member FDIC.
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**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network bank

AR Collections Playbook: How to Segment Slow vs. On-Time Payers

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