November 11th, 2016 / Account Receivable
Reduce bad debt by 30% with SMS payment reminders
One of the most popular and simple applications for Upwire is sending late payment reminders. So we’re well placed to tell you the most impactful strategy our customers use.
It’s SMS. One new customer has achieved over 30% reduction in bad debt and overdue accounts exceeding 60 days. How? They switched from email-only communications to a combined email/SMS approach. All automated of course, and requiring no additional effort.
SMS payment reminders work for several reasons:
- A phenomenal open rate of 98%.
- It’s personal and direct. You are delivering a message to someone’s pocket which gives urgency and importance.
- Switching channels from email to SMS reinforces that urgency has increased.
- SMS supports direct hyperlink short code URLs to direct straight to payment methods.
- 2-way SMS allows keyword replies so customers can request a call-back.
Don’t forget that SMS is best used for overdue invoices only. Even then, use only if initial emails haven’t driven action. Use it sparingly and as an escalation. This way it carries significance when you do use it.
So there you are, short and sweet. Incorporate SMS into your accounts receivable processes and see the difference it makes to your bottom line. Start the conversation today.
To set up your first automated payment alerts with Upwire, register for a FREE TRIAL today and get $10 credit.