In their own best interest, companies should remind their customers promptly if a payment is late. But accounts receivable management is time consuming and costly. Payment reminders via SMS are a smart way to save time and money.
There is hardly another business process which is tasked with managing special cases to the extent that accounts receivable is, meaning customers who don’t pay. If the dunning process fails, the resulting defaults on payments can soon have a negative impact on liquidity. At the same time, creditors are required by law to keep dunning charges to a minimum for customers in default. This means that companies are facing the challenge of streamlining their processes to not only significantly reduce the related costs, but also to improve their customers’ general payment behavior. To achieve this, it is essential that they optimize their digital communication processes.
From a business perspective, companies should remind customers without delay if they are late with payments. However, dunning processes involve a great amount of administrative efforts and costs. For instance, the company demanding payment needs to ensure that the customer in default does not incur high dunning fees. Companies also have to issue late payment notices in both a timely manner and in written form to serve as evidence. In addition, special regulations have to be considered when delivering late payment notices by post. Complex payment processes can also serve as a hurdle for customers in settling overdue invoices. To avoid triggering expensive and time-consuming dunning processes, companies can first send their customers a digital reminder.
Retarus SMS for Applications allows texts to be sent securely and reliably to any mobile phone anywhere in the world via business applications, ERP or CRM systems as well as web-based applications—straight from the Retarus infrastructure and without expensive investment in additional hardware or software. This SMS service is operated from Retarus’ own data centers in accordance with applicable local compliance guidelines and data protection regulations. All data is encrypted for transmission. By using this innovative SMS service, companies benefit from scalable transmission capacities and maximum transaction security worldwide. The Retarus Enterprise Administration Service portal (EAS) enables easy configuration of the service, while offering extensive reporting and monitoring details, as well as concise delivery statistics.
- Efficient dunning processes
- Optimized liquidity management
- Increased customer satisfaction
- Significant reduction in process costs
- Additional cross-selling opportunities
Sending payment reminders via SMS offers an attractive alternative to demanding payment by email or telephone. Customers in default receive a reminder via SMS. The information reaches recipients on their cell phones instantly, regardless of their current location. The SMS can also contain a link enabling customers to make the payment directly from their mobile devices, further optimizing customer payment behavior. If a telephone number appears as the sender ID or is contained in the SMS itself, it is very easy for customers to call their contact back. In this way the SMS messages can be used, for example, for cross-selling credit advisory services without having to switch between media or channels.
Retarus SMS for Applications allows companies to flexibly control the date and time that messages are sent. In this way, they can ensure that sufficient human resources are available to efficiently process customer responses.
The Retarus EAS portal allows users to easily configure general sending options in advance. Furthermore, the portal offers in-depth analysis of dates and times of sending, which allows professional controlling of sales. Companies can opt to receive automatic delivery confirmations for each text sent, so they can accurately trace when the message passed through the Retarus infrastructure, when it was transferred to the cellular carrier, and when it was received by the customer. The Retarus infrastructure uses a network of aggregators to reach 99 percent of the mobile communication networks on all continents. Moreover, Retarus complies with regional regulations for the successful delivery of text messages around the globe. Optimal routing and customized configuration of the sender ID ensure that companies benefit from particularly high delivery rates for their payment reminders, resulting in significantly optimized liquidity management.
If the price of a security reaches a pre-defined limit, the investor immediately receives a notification via SMS.