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

Increase Promise to Pay conversion rates with SMS

Today business communication is often reduced to quick exchanges and instant messaging, the role of SMS has become increasingly pivotal to keep conversations front of mind. One such area where SMS has proven to be a game-changer is for late payments, especially Promise to Pay (PTP) agreements. These agreements, which involve a commitment to settle a financial obligation, benefit immensely from the efficiency and immediacy that SMS brings to the table. In this blog, we will explore the power of SMS in the context of Promise to Pay agreements.

What is Promise to Pay?

A ‘Promise to Pay’ or ‘PTP’ agreement is when a customer commits to making payments within a specified timeframe to rectify late payments, therefore entering a Promise to Pay agreement with the business. Often overseen by the business’s credit control team, PTP agreements offer structure to both the customer and the business, providing a clear repayment plan and agreeing upon terms including payment amounts and due dates.

The PTP agreement is commonly documented and agreed upon in writing. This allows credit control teams to be proactive when it comes to late payments and keep collaborative and open communication with the customer.

Why use SMS for Promise to Pay agreements?

SMS is a universal and reliable communication channel, deliverable to every mobile phone worldwide, even without an internet connection. The impact of SMS is also evident in its 9.18% higher click-through rates compared to other digital channels and customers are thirty-five times more likely to read SMS messages than emails.

SMS is also non-intrusive compared to potentially disruptive phone calls and offers convenience to customers who can engage with messages at their own pace. Furthermore, SMS is quick to implement through platforms like CM.com, enabling businesses to efficiently send payment reminders and increase conversion rates.

How to use SMS for Promise to Pay

SMS can be used in two ways for PTP agreements. The first, SMS reminders can be used to encourage customers to enter a PTP agreement for their payments. The second is that SMS can then be used to follow up with customers and share updates on the PTP plan, to highlight upcoming payment dates, for example. Below we’ve shared some SMS examples for PTP agreements.

Message one

Hi [FIRSTNAME], we would like to remind you that payment for [AMOUNT] was due on [DATE]. To avoid any additional costs, please make payment no later than [DATE] via this link [LINK] or bank transfer. Thank you, [COMPANY NAME].

This message should be shared once the original due date has passed.

Message two

Hi [FIRSTNAME], we would like to remind you that payment [AMOUNT] is due on [DATE]. To avoid any additional costs, please make payment via this link [LINK] or bank transfer. Thank you, [COMPANY NAME].

This message should be shared 10 days before the new due date.

Message three

Hi [FIRSTNAME], payment [AMOUNT] that was due on [DATE] has not been paid. To avoid any legal action, pay now via this link [LINK] or bank transfer or select a new payment date [LINK]. Thank you, [COMPANY NAME].

This message should be shared once the new due date has passed.

Message four

Hi [FIRSTNAME], thank you for selecting the new payment date of [DATE]. To avoid any additional costs, pay via this link [PAYMENT LINK] or bank transfer by this date. Thank you, [COMPANY NAME].

This message should be shared once the PTP agreement has been entered.

Message five

Hi [FIRSTNAME], as agreed in the payment agreement we would like to remind you that payment [AMOUNT] is due on [DATE]. To avoid any additional costs or legal action, please make payment via this link [LINK] or bank transfer. Thank you, [COMPANY NAME].

This message should be shared 10 days before the agreed due date.

Message six

Hi [FIRSTNAME], your payment of [AMOUNT] has been processed. If you wish to turn on automated payments click here [LINK]. Thank you, [COMPANY NAME].

This message should be shared once the payment has been processed.

Use SMS for Promise to Pay

By utilising SMS in Promise to Pay arrangements, credit control teams can establish a more efficient and collaborative communication process and increase conversion rates, positively impacting cash flow. This will ultimately boost the overall effectiveness of collecting late payments. If you're interested in integrating SMS for Promise to Pay agreements, get in touch and speak with a member of our team.

Use SMS for Promise to Pay with CM.com

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

Related articles

sms-email-leads
May 06, 2024 • SMS

SMS templates to streamline customer service

Using SMS for customer service enables service agents to connect with your customers and using templates not only saves time but also lets agents create personalised, on-brand communications with just a few clicks. In this blog, we’ll share SMS customer service templates you can use to give your customers the information they need — fast.

sms-vs-mms-vs-rcs
Apr 29, 2024 • SMS

Optimise customer service with notifications and live support via SMS

Add SMS to your contact centre to help your agents connect with your customers, tackle more conversations at a time without losing personal touch and gain valuable insights with streamlined feedback surveys to enhance customer satisfaction rates.

SMS Security
Apr 22, 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 cybercrime.

SMS Appointment Notifications
Apr 01, 2024 • SMS

Streamline your business to success with SMS notifications

From appointment no-shows to late payments, every disruption in the flow of a business is costly in both time and money. Lost preparation time, altered schedules and the additional time taken to reschedule appointments or deliveries impact revenue, a situation any business wants to avoid. Yet, timely communication via SMS can help prevent such disruptions in your business flow. In this blog, we'll explore how SMS offers a solution and share some SMS templates.

SMS Customer Service
Mar 25, 2024 • SMS

How to effectively use SMS for late payments

Organisations 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-in-ecommerce
Mar 11, 2024 • SMS

How to create a successful eCommerce strategy with SMS

Every successful eCommerce strategy should aim to optimise customer communication across the entire buying journey. Why? The customer buying journey isn't limited to the point of sale alone. It encompasses everything leading up to purchase and everything afterwards. So, businesses need to engage and assist customers during the pre-sale, purchase and post-purchase stages - via a channel available to all - to create a successful eCommerce strategy.

how-popular-is-sms
Mar 04, 2024 • SMS

How popular is SMS in 2024? And how can it add value to your business?

While SMS is one of the oldest messaging services, the rise of instant messaging channels made a dent in its traffic. Why? Compared to the newer channels with rich features, SMS is relatively basic in its features, with plain text messages and a character limit of 160. Yet in customer communication, basic is often effective. So much so, that SMS is still one of the most impactful communication channels today. But how can it add value to your business? In this blog, we explore the popularity and key use cases of this ever-lasting channel.

whatsapp-authentication
Jan 15, 2024 • Authentication

Two-Factor Authentication (2FA) on different messaging channels

Data security is an integral part of any organisation. Yet, how can businesses protect sensitive information in a world where employees and customers access online accounts from multiple devices and channels? Two-Factor Authentication (2FA) is the answer.

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