Use of Automated SMS in Subscription Services

SMS is an effective way to remind customers of an outstanding payment and get them to react quickly. People read SMS almost immediately, making it an efficient channel for both payment reminders and win-back campaigns.

Getting Customers to Pay Faster

Unpaid invoices are a common issue in subscription services. A good solution is to combine SMS and email for the first reminder—it increases the chances that the customer will pay immediately.

Brilleland uses this method in its eyewear subscription and sees excellent results.

Why Does SMS Work So Well?

• Many people overlook emails, but an SMS is almost always read immediately. When we send an SMS with payment details, we see an increase in payment rates of between 10–15%, combined with a 5-7 day faster settlement, says Thomas Sundbäck, Project Manager at Infosoft AS. 

What Should Be Included in the SMS? 

• We recommend including the KID number, amount, and account number, or a direct payment link. The goal is to make it as easy as possible for the customer to complete the payment, says Thomas. 

Win-Back of Canceled Customers

SMS is not only useful for payments—it can also be used to win back former customers.

The newspaper Dagen has set up a win-back campaign via MailMojo. One week after a customer has canceled, they receive an SMS and an email with a special offer.

Why Use SMS in Win-Back Campaigns?

• When a subscriber cancels, we send a personalized SMS combined with an email. The SMS provides an easy way back, often with an exclusive offer that is not available elsewhere, says Sundbäck.

What Have the Results Been?

• The campaign has been a great success for the newspaper Dagen. They have managed to win back many previous subscribers, says Sundbäck.

Other Opportunities

Several of our customers also choose to send an SMS in connection with a payment stop. Experience shows that when the subscriber receives this notification along with a link that allows them to easily restart their subscription, the repurchase rate increases significantly.

If you want to learn more about how we can implement smart use of SMS or email for your subscription business, feel free to get in touch!