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The effect of SMS reminders within debt collection

The effect of SMS reminders within debt collection

An increasing amount of companies experience the many benefits of sending SMS reminders.

Spryng was actually founded with the initial goal to reduce the dramatic no-show percentage in the healthcare sector by sending reminders by SMS. However, there are many more branches in which no-show results in major expenses.

These costs arise due to the unnecessary loss in time when a customer or patient doesn’t show up for their appointment without prior announcement. This time slot could have been filled if cancelled within the given time frame. By simply sending an appointment reminder unnecessary situations and queues are prevented.

When speaking about no-show, examples within the healthcare sector are mainly mentioned. However, the effects are very visible within debt collection too. Nibud carried out a test at the end of 2017 for the Groningen Kredietbank (GKB). The purpose of this test was to find out whether an SMS reminder would reduce the number of cases in which people don’t show up unannounced for their appointment.

“Due to a hectic day and a busy schedule, an appointment can easily be forgotten and the initial goal of the appointment disappears. This is especially the case for people who are in debt. An appointment reminder via SMS can help them. “

The result of the test was extremely successful as the number of no-shows decreased by 50%.

Sending a simple SMS reminder resulted in GKB saving 4.5 hours of time per week. In addition, GKB mentioned the positive effects on their customers. The SMS reminder prevents the bank to allow for a negative association with their customer. This negative link may have been made if they hadn’t shown up for their appointment without prior announcement.

“The reminders definitely provide our customers a service. If someone doesn’t show up for an appointment unannounced, he is (unconsciously) seen as less motivated, giving the customer a negative label. If someone contacts you to notify their absence, this is prevented. “

Could your company also benefit from sending reminder messages  SMS, or are you interested to hear more about this service? Don’t wait around and contact Spryng today via +31 (0) 20 770 3005 or Spryng specialises in SMS services and our team will be happy to help you out!

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