The added value of a text message in credit management

The text, what about it again?

Before we dive into the depths, let's start with a little bit of history about the text message. SMS stands for “short message service” and was invented in the 1980s by German Friedhelm Hillebrand and Frenchman Bernard Ghillebaert. The text message was intended as an easy way to send short text messages to mobile devices. The first text message was sent in 1992, but it took a few more years before this means of communication was really widely used. In the late nineties and early 2000s, SMS became the standard for sending short text messages.

What text messages can you send in credit management

You can use the text message in various ways within credit management. We have listed the five most frequently sent texts for you.

Pre-announcement (pre due)

The pre-announcement is intended for customers who pay by direct debit. With the advance announcement, also known as a pre-due text message, they are informed in advance that an amount will be deducted from their account in x number of days. By announcing the automatic debit, customers can already check whether there are sufficient funds in the account. This can drastically reduce the number of cancellations.

Text message with payment link

This type of text message is ideal for when speed and efficiency are important. For example, at customer service or customer contact centers. In addition, the text message with a payment link can be used as an automatic follow-up to a cancellation. The sms with payment link allows the customer to pay directly from the text message. This reduces the chance of delayed or forgotten payments, resulting in a faster and better conversion.

Reminder (with payment link)

It sometimes happens that a customer does not pay their bill. A reminder by text message can then offer a solution. This reminder can be twofold. It can be seen as a direct payment request, allowing the customer to easily and quickly pay the outstanding bill, and it can be considered a service message, as it reminds customers of outstanding accounts. The result is often a quick payment and a positive experience with the organization, which, after all, puts customer convenience first.

Data enrichment

Another common way of using SMS is as a communication tool for data enrichment. For example, when an email bounces, you can follow it up with a text message. The text message may then ask you to validate the email address or add a new email address.

Confirmation and thanks

When the customer has completed a payment, an SMS confirmation can be sent. In this text message, you can immediately thank you for the payment. This not only provides more certainty that the payment has arrived correctly, it is also nice to receive! A small gesture of great value.

What to look for when composing a text message

When sending a text message, there are a few important aspects to pay attention to. First, you have to take into account the maximum number of characters. This is because a text message is limited to 160 characters per message. So it's essential to keep the message concise and clear. Second, reliability is crucial. By using an authorized number as the sender, you increase the credibility of the text messages and prevent them from being considered spam. A recognized number also increases the chance that customers will recognize the text message and take it seriously, leading to more effective communication. As a third point, it is useful if customers can text back. This allows you to immediately address any questions and eliminate bumps.

When to send a text message to credit management

You can use SMS at various key points in the credit management process:

Payment reminders

Send a text message in time to remind customers of the approaching due date of the outstanding invoice. This helps to prevent late payments and improve cash flow.

Overdue payments

Send an alert text message in case of overdue payments. Here, you can immediately draw attention to possible consequences of further non-payment, such as additional costs or legal action. Always offers the customer the option to pay directly via a payment link.

After email bounce

If emails come back because they “can't be delivered”, you can choose different types of text messages. For example, an SMS with a payment link so that it can still be paid, or maybe a data enrichment text message so that the email address is up to date again.

After completing payment

Use text messaging for personal interactions, such as payment confirmations or thank-you notes. This strengthens customer relationships and ensures fast and effective communication.

Customers respond positively to a text message

Customers generally respond positively to a text message, especially if the messages are of added value. Well-timed and relevant text messages, such as payment requests, confirmations, thank-you notes, or payment reminders, are often appreciated. They provide customers with a direct and convenient way to receive important information and take action.

SMS is of great added value in credit management

SMS has a significant added value in credit management because of its directness, efficiency and effectiveness. It enables organizations to inform customers quickly and directly about outstanding invoices, payment reminders and other important (financial) matters. And precisely because they stand out among all WhatsApp, Messenger and Telegram messages these days, text messages have taken on an urgent character. This ensures that a text message is read almost immediately.

Fast, easy, safe and personal

In addition, the SMS increases the amount of payments received. This is because it offers customers a fast, easy and secure way to pay outstanding invoices. This reduces the risk of late payments and improves the organization's cash flow. The personal nature of SMS also ensures more effective communication, where customers are addressed individually and receive relevant information.

Valuable tool

With its wide reach, high opening rate and fast delivery, SMS is a valuable tool that makes credit management more efficient, reduces payment delays and strengthens customer relationships. Using a text message as a supplement to other means of communication has a positive impact on the organization's overall credit management.