previous icon Back to blog
Apr 08, 2024
4 minutes read

How to Effectively Use SMS for Late Payments

Organizations face a significant challenge in effectively managing overdue payments and cash flow in a positive light with customers. To collect payments while keeping relationships intact and increasing engagement, SMS has emerged as a powerful, efficient and convenient tool for both businesses and customers. In this blog, we’ll explore how to effectively use SMS for late payments, highlighting its benefits and best practices.

SMS offers a direct and immediate means of engaging positively with customers for overdue payments and collection while respecting their time and privacy. This allows credit control teams to remain proactive with concise communication and a clear call-to-action (CTA) which resolve outstanding payments.

Why Use SMS for Late Payments?

It’s Universal

SMS functionality is integrated into every mobile phone, making delivery inherent in handsets globally. Considering there are 8.9 billion mobile phone subscriptions worldwide, SMS emerges as a powerful channel to reach customers.

It’s Impactful

Click-through rates (CTRs) for SMS are 9.18% higher than other digital channels, and 85% of customers are more inclined to read SMS messages compared to emails. Our customer Radius, which uses SMS for returned direct debits, found that 48% of customers who clicked on the link made the payment, saving the equivalent of two full-time members of staff in the credit control team.

It’s Non-Intrusive

In contrast to potentially disruptive and intrusive phone calls, SMS offers convenience to customers. They can easily make payments in the evening, offering flexibility for those busy at work during the day. As a result, SMS provides a means of positively engaging with customers while honoring their time.

Best Practices for Using SMS for Late Payments

As we’ve seen SMS has many benefits for overdue payments, however, the content of the message is also key to drive engagement, a positive response and the ultimate goal, payment. So, what are the best practices when it comes to SMS for late payments?

Make it personal

SMS messages should be personalized to the recipient and tailored to their specific use case. Including the customer's name, account details or payment amount makes it more relevant and engaging and is therefore crucial for effective debt collection.

Be clear and concise

SMS messages for late payments should be clear and concise. While personalization helps for clarity, the SMS needs to state exactly why you’re contacting them and what the payment is specifically for. Making it as clear as possible avoids any confusion which may deter the customer and make them feel uneasy.

Include payment links

One of the easiest ways customers can make a payment after receiving an SMS message is to include a payment link or a link to your payment portal. Ensuring it is as simple as possible to make payment will increase your chances of the customer clicking on the link there and then.

Stay compliant

Compliance is essential when using SMS for payment collection. This includes capturing consent and opt-ins, clearly showing our recipients can opt-out and adhering to the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA).

Why Use CM.com as Your SMS Provider?

Fast implementation

With CM.com, setting up and sending SMS messages takes just minutes and it's never been easier. With just a few quick steps, overdue payment reminders, late payment notices or even payment confirmations can be shared with customers.

“CM.com's solutions have been great. It only takes us around an hour to train people before putting them live on the system. It’s got good UX, good UI, and it's intuitive; it just makes sense.” Colin Peters, Group Communications Director at Radius.

Global reach

CM.com’s platform can send worldwide SMS messages with delivery in under 10 seconds. How? It has over 60 direct connections to international carriers, meaning you can engage customers and collect payments across the globe.

Security and compliance

CM.com is committed to keeping data secure, protecting privacy and compliance. Our services are ISO-certified and comply with industry-standard security, meaning you can protect your customers’ data and payments.

Omnichannel native

With CM.com, you can connect with multiple messaging channels from SMS and RCS to WhatsApp Business and Google’s Business Messages. This means you can deliver a truly omnichannel approach and engage with customers via their preferred channels, all in one platform.

By harnessing SMS for late payments, credit control teams can establish a more streamlined and effective communication process, ultimately enhancing the overall efficiency of payment recovery efforts.

Are You Interested in Using SMS for Late Payments? Reach out and Speak to a Member of Our Team.

Was this article interesting?
Share it!
Christel Brouwers
Copywriter at CM.com. Passionate about language and getting CM.com’s message out there. Shares content about CPaaS, Payments and more.

Latest Articles

Unified Messaging With RCS on iOS
May 15, 2024 • Instant Messaging

Unified Messaging With RCS on iOS

RCS is a rising star among the messaging channels. It combines the reliability of the SMS network with the added benefits of rich media and other modern messaging features. Its only hiccup was reach - iOS didn't support RCS. Until now.

hero-17-sms-customer-service-templates-to-use-today
Apr 29, 2024 • SMS

17 SMS Customer Service Templates to Use Today

Using SMS customer service templates not only saves time but lets your support team create personalized, on-brand communications with just a few clicks. Today we’ll share business text message templates you can use to give your customers the information they need — fast.

SMS Security
Apr 18, 2024 • Security

Secure Your Business With SMS OTPs and Alerts

In the current digital era, technological and online advances are rapidly growing, creating new ways for businesses to engage their customers. Unfortunately, where there is growth, there will be criminals trying to steal some of the profits. Protecting business data, customer information, and online accounts is a priority for every modern business. SMS security can help protect your business and your customers from online fraud and cyber crime.

SMS Customer Service
Mar 11, 2024 • SMS

Optimize the Customer Experience with Valuable Insights and Direct Live Support via SMS

Add SMS to your contact center and help your agents to connect with your customers on the most reliable channel. Tackle more conversations at a time without losing that important personal touch, and gain valuable insights with streamlined SMS feedback surveys to enhance customer satisfaction rates.

SMS Appointment Notifications
Mar 05, 2024 • SMS

Streamline Your Business to Success with SMS Notifications

Appointment no-shows, delivery delays, abandoned online shopping carts, late payments - all of the above can be quite the headache for many businesses. SMS notifications offer a solution.

sms-vs-mms-vs-rcs
Feb 08, 2024 • SMS

SMS vs MMS - What is the Difference?

There are many different ways to send text messages, and the various names and acronyms may start to feel daunting. In this blog, we'll tell you everything about SMS and MMS.

sms-in-ecommerce
Feb 07, 2024 • SMS

SMS for eCommerce - Create a Successful eCommerce Strategy With SMS

Want to grow your business? Then customer contact is key. Now that everybody and everything is connected to each other via those powerful little computers in our hands, the way you communicate with customers is becoming increasingly important for your succes. Read all about how you can use SMS to elevate your customer contact, drive sales and create that loyal customer base.

how-popular-is-sms
Feb 07, 2024 • SMS

How Popular Is SMS in 2024 and What Is Its Added Value for Business?

SMS is one of the oldest text messaging services, and the rise of instant messaging apps definitely made a dent in SMS traffic. Contrary to the newer apps with their rich features, SMS is quite basic in its features- plain text messages, not fluff, and a character limit of 160. Regardless, SMS is still one of the most impactful communication channels today. Read all about SMS statistics and its continued value to modern business communication.

Is this region a better fit for you?
Go
close icon