Occasionally clients forget to pay. Usually, it’s not malicious. But, when things do slip people’s minds, outstanding payment reminders with SMS are one of the best ways to get customers to settle their bill. In fact, SMS might be the best way to get paid.
What is an Outstanding Payment Reminder SMS?
An SMS outstanding payment reminder is simply an SMS message that reminds a customer they have an open invoice that needs to be paid. SMS payment reminders can include a link that recipients can click to pay their unpaid invoices.
SMS is one of the best communication channels for payment reminders. Most people in the world have cell phones. And people usually have their cell phones with them. So SMS payment reminders are the most reliable way to remind people about open invoices.
Can You Legally Send Payment Reminder Texts?
SMS outstanding payment reminders are legal. But there are legal requirements for sending compliant SMS payment reminders. As long as you meet the compliance standards, there’s no problem with sending payment reminders via SMS. Here’s what you need to know to send legal payment reminder texts.
First, you must get consent from recipients before you send them texts. The best way to get consent to text is through a double opt-in, where the recipient opts in through text and confirms their opt-in via email. That way you can be sure they intended to opt-in to receive text messages, and you have written documentation that confirms each opt-in.
It’s best to get customers to consent to receiving text messages before you send the invoice. That way you’ll have consent to send any SMS messages you need to get paid.
Also, there are guidelines for sending payment reminder texts, even after customers opt-in:
- You must send texts at a reasonable time. According to the law, this means no texts before 9AM or after 8PM, based on the recipient’s timezone.
- You cannot send payment reminders to a customer if they are represented by an attorney regarding the debt. You must communicate with the attorney.
- Avoid sending payment reminders to people while they are at work. If a customer’s workplace does not permit them to receive texts while working, texting them is against the law.
But, if you’re following the laws, you can legally send payment reminder texts.
The Benefits of SMS Payment Reminders
There are other ways to send payment reminders. But SMS payment reminders are the best way to remind customers of their unpaid invoices. At the very least, you should use SMS to support your other outreach methods. And that’s not just a claim. The strengths of SMS make it especially well-suited to payment reminders.
SMS is a very conversational communication channel. Even though most people get some SMS marketing messages, text messaging is still primarily used for one-to-one conversations.
That’s why SMS is a great way to send payment reminders. Being conversational is the best way to approach a delicate issue like reminding someone that they haven’t paid for something yet.
It’s easy to set up your SMS messaging so that it looks like your messages come from a person, rather than a company. So customers feel like it’s just someone reaching out to them to remind them of something they’ve forgotten, rather than a business demanding payment.
The personal touch of a well-crafted text message may be enough to get some of your unpaid invoices paid.
Your phone database can be segmented just like an email list. This enables you to segment your phone lists and send messages to customers based on how long their invoice has been overdue and what action you might take in the event that the invoice remains unpaid.
That way you can craft specific messages for customers who are receiving their first late payment reminder and customers who’ve been outstanding with their payments for longer. You can also identify which invoices need to be sent to collections based on the number of late payment reminders a customer has received.
In short, using SMS to send late payment reminders enables you to manage all the aspects of getting paid using a single management system.
Increased Open Rate
One of the most challenging parts of email correspondence is getting people to open your email. And caller ID makes it easy to dodge phone calls. But, even with the rise of SMS marketing, SMS still boasts up to 98% open rates.
This makes SMS one of the best ways to send information that you need the recipient to see. Based on the data, they’re going to open your message. This makes it difficult for a customer to claim that they didn’t see your message.
If you’re getting the cold shoulder with email and phone calls, SMS could be the silver bullet you need to collect on some of those long overdue invoices.
Obviously, the last thing you want is for the cost of collecting an overdue payment to eat up the profit from that invoice.
Yes, sending a single email might be free, depending on your email service provider. But sending emails in bulk is not free. And a 15% to 20% email open rate is exceptional.
In contrast, sending SMS messages costs less than a penny per SMS message. Additionally, you get much higher open rates, better click-through rates, and more responses from SMS messages.
Sending SMS messages is super affordable. And you get more performance per dollar than you can get with any other communication channel.
Ask for Payments Professionally with Telnyx
Ultimately, SMS is the best channel for sending payment reminders, because people are more likely to read your messages and take action. Ready to integrate SMS payment reminders into your invoicing and payment system? Telnyx delivers ultra-reliable SMS messaging for less than a penny per message with full API support for automating your SMS payment reminders.
Talk to a Telnyx SMS expert to find out how to get more invoices paid with Telnyx.
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