When you run a business, waiting for outstanding payments from customers is highly frustrating.
The good news is that there are things you can do to encourage timely payments, including sending SMS message reminders.
Keep reading to learn more about the benefits of sending payment reminder messages, how to send messages that drive action, and discover some reminder text message templates to get started.
What is an outstanding payment reminder SMS?
An outstanding payment reminder SMS is a text message you send to customers who owe you money.
This short, automated reminder tells them how much they owe, the payment due date, and the channels they can use to arrange payment.
Benefits of sending an SMS payment reminder
Sending a payment reminder text message to your customers may seem like an unusual move, especially if you don’t have an SMS marketing strategy for your business. However, it can be an effective way to reduce the amount of late payments you receive.
Here are a few reasons why you should consider sending payment reminder messages.
Encourages timely payments
Outstanding payments can lead to cash flow problems, meaning you may struggle to pay employees, suppliers, and bills.
56% of small businesses in the United States say they are owed money from overdue invoices.
People pay attention to text messages, with many checking their notifications within minutes of receiving a message. As a result, they’re more likely to arrange payment immediately, meaning you get the money quicker.
Saves your business time
You can automate the payment reminder messages you send by connecting your billing system with your text messaging service provider of choice.
Create the triggers that will determine when a message gets sent, build your payment reminder templates, and your messaging service will do the rest.
This automation will save you time and resources, as you don’t have to send billing reminders manually, and ensures you deal with overdue payments as soon as they become an issue.
Fosters good customer relationships
Sometimes your best customers won’t pay you on time. They might have a question about your product or service, have cash flow issues of their own, or may have just misplaced your invoice.
Sending a gentle reminder shows customers that you respect and value their business, meaning they’re more likely to stay loyal in the future and promote your business to family and friends.
Eight steps to create impactful payment reminder texts
Writing effective payment reminder messages is a skill. You need to be respectful, while also reminding customers that there are consequences for missed or partial payments.
Here are 8 things to bear in mind when crafting your payment reminder text messages.
Step #1: Be friendly and polite
It may be tempting to be aggressive and demand payment immediately, especially if your customer owes you a lot of money. However, it’s far better to send a friendly reminder when requesting payment.
A forceful or hostile message can alienate a good customer who is otherwise happy with your product or service, or make them less inclined to make a payment.
An unhappy customer may tell friends and family about their experience or even file a complaint with their local consumer protection office or the Better Business Bureau (BBB).
While it’s important to be friendly, you don’t want to come across as too casual. Using emojis or text speak can make you appear unprofessional or cause customers not to trust your message.
Review your payment reminders before you send them out. Would you be happy to receive the message if you were in your customer’s position?
Step #2: Keep your messages short
A standard SMS message has a 160-character limit—this includes spaces and symbols.
Make sure your payment reminder message is concise. Otherwise, you may have to pay to send your reminder as multiple messages.
Shorter messages are also easier to read and understand, increasing the chances of customers making a payment immediately.
Step #3: Use personalization
Most customers now expect businesses to personalize their marketing efforts, with 71% expecting personalization as standard.
Personalizing your payment reminder text messages makes them stand out in a customer’s notifications and appear more trustworthy. Rather than sending a generic demand, you’re sending a message tailored to each customer.
One of the easiest ways to carry out personalization is to use your customer’s name at the start of your message. You can also mention the name of their business if it is appropriate.
Step #4: Include relevant details
If you want customers to pay you before the due date, the more information you can provide in your text messages, the better.
Mentioning the payment amount, the reference or invoice number, and the due date will help customers identify which specific payment they need to make and when they need to send it.
You can also include a link to your online payment portal, which we’ll talk about in more detail later.
Step #5: Combine with other marketing channels
Customers may need a few reminders before they’re in a position to pay online. You can use SMS messaging alongside other marketing channels, both digital and traditional, to encourage them to act.
A good strategy is to complement your text message payment reminders with email marketing. You can use emails to provide more detailed information about payment methods, as well as to attach an invoice.
Alternatively, you can call customers, use direct mail, or, if you have a mobile app, send push or in-app notifications.
If you do use multiple marketing channels to reach out to customers, be careful not to send too many messages. Inundating customers with payment reminders may annoy them, leading them to choose not to buy from you again.
Step #6: Provide a payment link
Directly linking to your payment portal in your reminder makes it easy for customers to send over a payment straightaway, especially if they’re away from home or the office.
Make sure your payment portal is mobile-responsive and loads quickly on mobile internet. Trust signals like security verifications and accepted payment methods can instill customer confidence in your online payment portal.
If you don’t have a payment portal, link to a page that lists all the different ways customers can get in touch to kickstart the payment process. For example, a phone number or an address where they can send a check.
Step #7: Offer customer support
Sometimes customers will not be able to make a payment right away. They may be withholding payment because they’re not happy with your product or service or would like to discuss a payment plan.
In this scenario, make it as easy as possible for customers to reach out and speak to you. The simplest way to do this is to ask them to reply to your payment reminder message or provide an email address or phone number.
Step #8: Keep communication records
Keeping track of all the times you’ve communicated with customers about an outstanding balance can help resolve disputes and protect you if a customer complains.
For example, if a customer claims that they never received a payment reminder, you can easily identify all the different messages you sent and when you sent them.
You can also see which channels of communication and types of messages are most effective in encouraging customers to pay online.
The best way to keep a log is through your customer relationship management (CRM) system.
Four payment reminder message templates
When chasing a customer for an invoice payment, you’ll want to send different payment reminder messages depending on when the payment is due.
For example, if the due date is a couple of weeks away, a friendly reminder message is enough. However, if a payment is overdue, you may need to be more direct, detailing what will happen if they don’t pay.
In this section, we’ll explain the 4 different payment reminder messages you’ll be likely to send, as well as some SMS payment reminder samples to get you started. Just customize with the relevant information and upload to your text messaging platform.
Template #1: Gentle payment reminder
A payment reminder text is one you send long before the due date. It encourages customers to pay ahead of time, which can improve your cash flow as a business.
This payment reminder is likely to be very friendly and warm. Depending on the payment deadline, you may send this message a few times ahead of the specified due date.
“Hi [customer name], just a gentle reminder that your payment of [amount] for invoice [number] is due on [date]. Please pay at [link]. Thank you, [company name].”
“Hi [customer name], just a reminder from [company name] that your payment of [amount] for invoice [number] is due on [date]. Thank you for choosing us. [Link]”
Template #2: Due date reminder
A due date reminder text is one you send close to the due date. This could be on the due date itself or a few days before.
The aim of this text is to get the customer to pay the outstanding balance before it becomes overdue. This text will still be friendly and polite, but more to the point than the gentle payment reminder.
It’s important to open up your channels of communication to encourage customers to get in touch if they have any issues making a payment.
“Hi [customer name], your payment of [amount] for invoice [number] is due today. Please pay here [link]. Let us know if you have any questions. [Company name].”
“Hi [customer name], your payment of [amount] for invoice [number] is due on [date]. Please arrange payment to avoid late fees. Thanks, [company name]. [Link].”
Template #3: Overdue payment request
An overdue payment request text is one you send if the balance remains unpaid after the due date. We recommend sending this 7 to 14 days after the due date.
This text will be more direct than the 2 previous reminders, but it’s still essential to stay polite. A hostile overdue payment request may put a customer on the defensive, making them less likely to organize payment.
To encourage customers to arrange payment, or to get in touch if they have an issue, you may want to mention any potential penalties, like late fees or a stop on services.
“Your payment of [amount] for invoice [number] is now overdue. Please pay as soon as possible to prevent further action: [link]. [Company name].”
“Re: Invoice [number] for [company name]. Our records show your payment of [amount] was due on [date]. Please make payment today to avoid further action: [link]”
Template #4: Final notice
A final notice text is the final reminder you send to a customer before you take additional action to recover the money they owe. We recommend sending this 30 days after the due date.
This text will be the most firm and direct message you send. It’s vital to convey the seriousness of the situation and what will happen if things escalate further. Include a definitive date so customers know when they need to make a payment by.
We also recommend sending an email or a letter in this situation. These give you more scope to provide information about the consequences of non-payment, and a paper trail in case the customer claims not to have received a text.
“FINAL NOTICE FROM [COMPANY NAME]: You have an outstanding balance of [amount] for invoice [number]. Immediate payment is required by [date]: [link]”
“FINAL NOTICE: Your payment of [amount] for invoice [number] is still outstanding. Please pay by [date] to avoid escalation: [link]. Contact [company] if needed.”
Key takeaways
- What is an outstanding payment reminder SMS? An outstanding payment reminder SMS is a text message you send to a customer, reminding them that they owe you money.
- There are significant benefits to sending payment reminder texts: Text messages are easy to personalize and can be read quickly, increasing the chances of customers responding positively to them. Plus, you can automate them, saving time and resources.
- Insert all the information your customer needs to start the payment process: This includes how much they owe, a reference or invoice number, and a direct link to your payment processor.
- Create text messages that help, not frustrate customers: Be mindful of the 160-character limit, be friendly and respectful, and offer additional support if needed.
- There are 4 different payment reminder templates you can use: These include a gentle reminder text, a due date reminder, an overdue payment request, and a final notice before you take further action.