Payment Reminders with Retarus SMS for Applications
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, for example by sending payment reminders by text.
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 digital payment reminders via text message. And in doing so, reduce costs in an instant.
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
Benefits at a Glance
Sending text reminders for outstanding payments 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 text reminders 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.
Did You Know?
According to recent studies, 76% of B2C customers who receive SMS payment reminders improve their dunning status.
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