When you run a membership or subscription service, acquiring new customers can be tricky. Often, the best strategy is to encourage existing customers to continue to stay subscribed.
However, this isn’t without its challenges. Even if current customers are happy with the service you provide, they may simply forget to renew and unintentionally lose access.
The good news is that there are things you can do to provide customers with a quick reminder about their upcoming renewal, including sending SMS messages.
Join us as we explore how to send membership renewal SMS messages. Together we’ll look at how to send them, when to send them, and what to mention to reap the benefits.
What are renewal reminder text messages?
A renewal reminder text message (or renewal reminder SMS) is a short electronic message sent directly to a phone reminding members to renew a membership or subscription before the renewal date.
If you offer a membership or subscription plan to customers—for example, if you operate a gym or streaming service, or run a software as a service (SaaS) platform—you’ll want to encourage them to keep using your services.
Use a renewal reminder notification to gently remind them that their subscription or membership is due to expire, and help them stay signed up.
The benefits of renewal reminders
We all have a lot of different memberships and subscriptions that need renewing on a regular basis. Gym memberships, auto insurance policies, web hosting plans… The list goes on!
Offering a renewal reminder for your services means customers can easily make a payment without having to keep track of all their renewal dates.
Here are some reasons why implementing automated reminders at renewal time can benefit your business.
Increases customer retention
Renewal reminders can boost retention rates for your business, meaning customers are more likely to remain a member or a subscriber.
Customers may let membership and subscription plans expire simply because they forgot to take action before the renewal date. A well-timed renewal reminder prevents this, reducing churn and reminding customers of the benefits of signing up for another year.
Reduces payment failures
If a customer’s card expires and their payment fails, they will not be able to auto-renew their subscription or membership. As a result, their subscription could get canceled unexpectedly.
A renewal reminder notification gives them the opportunity to check their payment method and remove expired cards, so their membership or subscription can continue without issues.
It can also reduce the number of refund requests from customers who weren’t planning to renew but were automatically enrolled, meaning less time-consuming administration.
Drives upsells
If you want to encourage current members to move up to a more expensive subscription plan, you can do this through a membership renewal reminder.
Let them know which membership or subscription plan they’re on, and why they should consider moving to the next plan up, including new features and other benefits. You can even offer an incentive or discount to sweeten the deal.
Renewal SMS messages vs. renewal emails
Renewal SMS messages have significant advantages over email notifications.
While a customer may receive tens, even hundreds, of emails every day, they will only receive a small number of SMS messages. This means your renewal reminder is more likely to stand out.
SMS messages are more concise and direct than emails, meaning they’re easier to read and act on. They’re ideal if you need a customer to deal with their subscription renewal quickly.
Renewal emails can only be delivered and read where a customer has an internet connection. SMS can be accessed wherever there’s a cellular signal—no mobile data or WiFi required. As a result, customers can pick up your renewal message wherever they are.
You can use membership renewal emails and SMS messages together. Send a renewal email with detailed information on why a customer should renew their subscription or membership, and a short, punchy SMS reminder that grabs their attention.
Mailchimp makes it easy to coordinate your transactional email and SMS campaigns to deliver the best results.
Key elements to include in a renewal reminder text message
The maximum character limit for an SMS is 160 characters—between 26 and 32 words. This means you need to make sure your renewal message is sharp, to the point, and engaging.
To maximize conversion rates while keeping to the character limit, include the following vital information in your membership renewal:
- Customer name: Personalizing your SMS message builds trust and shows customers that the notification they’ve just received is authentic.
- Company name: Including your company name prevents confusion and reminds customers of your brand.
- Cost of renewal: Stating the renewal cost ensures transparency.
- Expiration date: Mentioning the date a membership or subscription expires encourages customers to act.
- Clear call to action (CTA) and link: Including a direct link to the renewal or checkout page makes it easy for customers to renew their membership or subscription. This checkout page should contain additional information that doesn’t fit in the subscription renewal text, like billing dates, account details, and a breakdown of upcoming charges.
- Opt-out message: While there is debate about whether renewal reminders fall under transactional or marketing notifications, adding an opt-out covers all bases and ensures you stay compliant.
A simple membership renewal SMS could look like this:
“Hi [First Name], your [Membership name] membership expires on [Date]. Renew today for $100 to stay active [Link]. Reply STOP to opt out.”
How to create engaging renewal reminders
High-quality SMS membership renewal reminders can substantially increase subscription revenue, but there is a skill to crafting them. You need to cover a lot of information in not a lot of space.
Here are some additional things to consider when planning, writing, and scheduling subscription and membership renewals.
Choose the right renewal time
Your customers’ memberships and subscriptions won’t all expire at the same time. Automating your messages lets you send a timely SMS aligned with each member’s renewal date.
When should you send a renewal notification to optimize the chance of a customer hitting the Renew button? You don’t want to send it too early, as they may ignore it, but you don’t want to send it too late, as they may not be able to renew in time.
The best time to send a renewal SMS is 2 weeks before their membership or subscription expires. This gives customers enough time to prepare without being premature.
Use the fear of missing out
The fear of missing out (FOMO) is when you use psychology to tap into customers’ emotional triggers, making them want to act quickly.
You can use it in your SMS reminders by letting customers know how much time they have to renew and showcasing the benefits they’ll lose access to if they don’t re-subscribe. You can also use it in your wording, for example, "Renew your membership today."
However, use FOMO sparingly. You want to encourage customers to go through the renewal process, not make them feel stressed or anxious.
Offer an incentive
Offering customers an incentive to renew their membership or move to the next subscription tier can increase renewal rates and overall revenue.
Do research to see which incentives customers respond best to. This could be a discount code, a month’s free membership, or an exclusive bonus like free merchandise or shipping.
Send multiple reminders
Even though people are more likely to check their phone messages than their inbox, there’s still a risk that your initial SMS could be overlooked. Sending multiple renewal reminders increases the chances customers will read and act on your renewal request.
Sending too many messages can frustrate customers—stick to 3 SMSs, sent at regular intervals. For example, you can send the first reminder 2 weeks before a customer’s renewal date, the second reminder a week before renewal, and the final reminder a day before renewal.
Note which customers renew before the deadline so you don’t send them unnecessary SMS requests.
Make it easy to renew
The more straightforward you can make the renewal process, the better. This makes it easier for customers to renew as soon as they receive your notification.
Ensure the payment page you link to in your SMS is mobile-friendly, easy to access, and easy to enter payment details into. Enable autofill so customers don’t have to manually enter their payment details, or use one-click checkout so they can renew with a tap of a button.
Unlock the power of SMS messaging with Mailchimp
Implementing membership renewal texts can reduce churn, boost customer loyalty, and provide your business with a steady flow of revenue.
Here’s a final tip to transform your campaigns: Use A/B testing to see which SMS renewal reminders customers prefer. Try different CTAs, delivery times, and wording to see what delivers the highest conversion rate.
If you’re new to SMS notifications, Mailchimp has you covered. Personalize your texts with ease, schedule messages to maximize conversion rates, and track customer clicks in real time.
Sign up today and discover how you can transform your marketing strategy with high-quality, compliant, and engaging membership renewal messages.