How to effectively use SMS for late payments

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 the 5.1 billion individuals subscribed to mobile services worldwide and the presence of 111.8 million mobile subscriptions in the UK, SMS emerges as a powerful channel to reach customers.

It’s reliable

With approximately 93% of the land area in the UK covered by outdoor 4G and 85% covered by outdoor 5G signal, SMS connects to nearly all premises. It is anticipated that 4G coverage will increase to 95% in 2025. As a result, customers will likely have signal access to receive SMS messages throughout the UK.

It’s impactful

Click-through rates (CTRs) for SMS are 9.18% higher than other digital channels, and customers are thirty-five times 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 honouring 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 personalised 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 personalisation 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.