Why sending outstanding payment reminder by SMS?

What to do with customers not paying their bills?

How to handle unpaid bills and outstanding invoices? A lot of customers and enterprises will have some difficulties to pay. You cannot permit your company to have cashflow problems either. So why not using payment reminders by SMS?

SMS, an effective tool to get outstanding invoices paid

It’s proven, SMS is the most efficient way to gain time and to receive quick response to your demand. Nowadays, many companies and individuals forget to pay their bills or make it a second priority. As a company or self-employed, this is a priority. Professionals also have invoices and suppliers to pay and want to avoid cash flow problems. Being proactive and remind customers of unpaid invoices is important. It is also possible to list some “bad payers” and send personalised messages.

So, how to use outstanding payment reminders by SMS?

In the case of a Belgian telecom provider offering telephone, internet and TV solutions, we realised that he was drowning in unpaid bills. Like every large company, this customer has a number of late payments every month. To decrease the number of late payments, they wanted to send reminders to its clients effectively. Indeed, we received a lot of this kind of requests from different clients in several sectors.

Send a gentle reminder by SMS

It’s important to take action and be proactive with your customers. They will also be gratifying for you. A simple SMS allows to inform customers directly that they can find their invoice online or in their mailbox. What’s more, with the new integrated payment link, customers can pay their bills instantly and securely! They just click on a link and are directly transmitted to their favorite billing tool.

This avoids customers forgetting to pay a bill. It’s a more proactive way to manage your customers. First of all, it prevents customers to forget to pay. Secondly, it avoids that your mail falls into the hundreds of invoices or other spam emails sent by other companies.

If the outstanding invoice remains unpaid, customers receive an SMS to remind that they have an open invoice. If you generally work by post, you will also avoid wasting costs on stamps and other accessories for sending the invoice. Post reminders are expensive, and no one likes them as they are surcharged for your customers. Also, this will not help maintain good customer relations!

How does it work?

It’s really easy. Our client provides us with his database in an excel file and everything is transferred to our platform. We implement the solution that automatically sends an SMS to a client with an overdue bill. With the possibility for the company to check the delivery rate of its payment reminders. Thanks to analytics, client was able to improve the timing of his reminders as well as create improved databases to send reminders to “frequently bad payers” in advance.

The results were incredible, payment reminder through SMS seems to be an effective way of getting people to pay their bills. In our client case, they noticed a substantial decrease of very late payments. That’s good for the company’s cash flow. This solution has a proven ROI on late payments.

« Dear John Doe, your invoice n°234 is now available in your mailbox. You can also pay it instantly via this link : paymyinvoice »

Add voice technology to remind unpaid bills

For another client, we added voice technology to increase the results even more. In this case, our client wanted a really powerful way to get his bills paid. For one of the largest telecom players in the Belgian market, with about 3 million customers and a turnover of 1.2 billion euros, we automated its credit collection

What about integration?

Implementation is really quick and easy. The solution is linked to a file that is put on a FTP* by our client. In the computer world, FTP means File Transfer Protocol. It is used to transfer files from a computer to a server or from a server to a computer. No need for complex development to obtain this solution. Once that we have the contact list, customers with one or more open invoices are automatically called. Automated voice asks the client if he already paid his bill, is going to pay it or wants to be transferred to an agent. In function of his replies, phone call will be ended, or customer will be transferred to an expert.

It’s a really efficient method. Companies using this solution have seen their late payments drop drastically. For this client, a significant percentage of the open invoices are paid after the first automated call. The solution is quick and cost effective. With a proven result: the company managed to reduce its number of reminders by 30%. Together with an interesting side effect: an increase of end customer satisfaction.

« Dear customer, this is an automatic message from your telecom company, your invoice n°234 is still unpaid. Please regularise it before 5 days or we’ll be in the process of cutting off your subscription »

Try the power of multichannel communication

Keep good relations and increase client relationships by addressing your customers in a personalised way. It’s simple: all of this methods are easy to manage. The implementation is quick and easy. You simply need to determine the content of the message, the moment you want to send it and the channel you want to use. That’s it.

Want to avoid the outstanding invoices?

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