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Why SMS messaging works to reduce overdue account fees Part 2 [Derrimut 247 Case Study]

In Part 1 we saw that Derrimut 247 Caroline Springs use mobile messaging to notify their members of overdue fees, here we are looking at 2 reasons why it works.


1. Immediacy

By using mobile, it is an opportunity for both the club and the member to sort out the credit control issues sooner rather than later.

Samantha the Club Manager noted that the SMS “prompted immediate action”. This is due to the simple inclusion of the gyms phone number within the message that receivers can just “touch to call” and sort out the overdue fees.

Combine this with the fact that 90% of messages are read within 3mins, 97% are read within 15mins means that the overdue fees are usually sort out relatively quickly, if not, that day.

2. Readership

Do you remember the time that you did not read an SMS message? A recent study shows that mobile message open rates are exceeding 99%.

What a lot of our clients are finding is that emails and letters are not being read therefore no action is being taken to resolve the overdue account issue.  By using an SMS to notify the member it cuts through the clutter and puts the message in the forefront of the receivers mind.

Not only that, in the case of Derrimut 247 Caroline Springs, the mobile messaging was saving them money as they did not have to repeatedly send out letters of account fees to their members.

Essentially, the implementation of the mobile strategy to contact overdue members is to combat the problem that many are having by sending (unread) letters that were high in cost with low response rates.  Using mobile has solved this problem and has also freed up time for account managers to concentrate on other strategies to improve their club.

Thinking of using this strategy to decrease debtors? MOBIPOST can integrate with many CRM applications to send out automated responses. Or alternatively it is easily done by exporting your overdue debtor’s database, load it up and send through MOBIPOST. Call 1300 550 353 or email support@mobipost.com.au for more info.



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