Bringing in new customers is hard, but losing them is easy (and costly). That’s why ensuring customers renew with you is mission-critical.
If you’ve worked in sales, you know that bringing in new business is challenging.
A lot needs to go right for someone to not only want what you’re selling but choose your service or product over a competitor’s.
So, it makes sense to do everything you can to hold on to these customers. Customer retention—the things your business does to keep your customers from leaving—can pay off in a big way.
While it might not come with the same rush as closing a major deal, it can be the difference between success and failure.
Over the past nine years, we’ve seen an explosion of new types of business models, all designed to keep customers consistently engaged in long-term relationships—think Netflix, Amazon Prime, Uber, Spotify, Salesforce, Zendesk, Box…the list goes on.
Des Traynor, the co-founder of Intercom, spoke at Web Summit 2019 about how the subscription economy is taking over. In this new world, he argued that “retention is more important than conversion for all businesses.”
But how exactly do you retain customers?
The Harvard Business Review published some widely cited research on this subject. It suggests that the single most significant factor in customer loyalty isn’t “WOW’ing the customer,” as so many support blogs love to preach. Instead, it’s reducing customer effort.
You reduce customer effort by helping customers solve their problems as fast as possible. One of the lowest-hanging of low hanging fruit involves proactively reminding customers that their service or subscription is up for renewal.
Firstly, this prevents an abrupt and frustrating end of service. Secondly, if done correctly, it takes the heavy lifting out of renewing. The best way to do this is by sending text messages straight to your customer’s phone.
A strategic SMS renewal reminder campaign is guaranteed to increase customer retention.
To make the argument for why you should create an SMS renewal strategy here’s how texting compares to email across:
In our 2020 Text Messaging Report, we found that 62% of business owners and marketers believe that the fast delivery of messages is the most significant benefit of texting their audience.
Not only will customers receive text messages quickly, but research also shows that SMS open rates are as high as 98%, compared to just 20% of all emails. Plus, as you can see below, email open rates declined by 45% over the last nine years.
Finally, email response rates are around 6%, while SMS response rates are 45%.
It only makes sense that you should use a channel with fast delivery, high engagement, and quick response times to send your SMS renewal reminder.
(If you think it’s better to call, here’s an entire article on why texting is better than calling.)
Now that you’re fully versed in the benefits of sending renewal reminders via SMS, here are some tips to keep in mind as you start to write your own renewal reminder text messages.
Let’s review some examples of renewal reminders text messages you can use for inspiration. Here are two types of renewal texts you should send to reduce churn.
We recommend that you keep your text(s) simple and friendly. Crucially, it should contain all the vital information for the customer to renew–including a clear call to action. Take a look at this example:
Now let’s say even though you’ve sent several reminder texts leading up to the customer’s expiration date, the member still doesn’t renew. Well, that’s not to say you should stop sending text messages. You could send the following message, and even offer something for free:
In the above example, we used a fictional fruit delivery subscription service. The entire subscription economy can benefit from sending renewal SMS. Here are some other industries and text message examples.
You can contact members as their contract renewal date approaches and remind them to resign, so that they don’t miss any of your gym’s classes and events.
A great way to remind your nonprofit members to renew is by sending automated text message reminders!
Don’t let clients slip away. Encourage renewals well in advance of a policy’s expiration date. Along with the notification of the expiration, you can send deals and incentives that will sweeten the deal for resigning.
Sports clubs of all sizes and stripes can benefit from sending annual membership text reminders.
The first step is to start your 14-day free trial. Our free trial comes with 50 outgoing text messages, unlimited incoming messages, full access to all our powerful features, and dedicated support 7 days per week. You can use your trial account to test out sending SMS renewal reminders.
Drew Wilkinson is the Head of Marketing at SimpleTexting. Drew has more than a decade of experience managing successful integrated marketing programs to build brands, raise awareness, and generate demand.More Posts from Drew Wilkinson
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