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The Power of SMS & Email in the Collections World: How Automation Transforms Accounts Receivable


cell phone with SMS and Email

In today’s fast-paced financial environment, effective communication is the backbone of successful collections and accounts receivable management. Traditional methods like phone calls and letters are losing impact. Customers now expect quick, digital, and personalized contact.


That’s where SMS and email automation come in—powerful tools that help you collect faster, enhance customer experience, and optimize cash flow. At Divinity Software, we help businesses use these channels to automate collections, reduce days sales outstanding (DSO), and increase recovery rates through smart, data-driven communication.


Why SMS and Email Are Game-Changers for Collections

According to industry data, 39% of invoices in the U.S. are paid late, impacting business cash flow and operational efficiency. Outdated outreach methods simply don’t work in a digital-first world. SMS and email communication bring speed, automation, and scalability to your accounts receivable (AR) process.


Key Benefits:

  • Faster customer response times

  • Cost-effective and automated outreach

  • Real-time payment tracking

  • Improved customer relationships through respectful, timely communication


SMS Statistics: Real-Time Engagement That Drives Action

  • 98% of text messages are opened within five minutes of delivery.

  • 45% response rate for SMS vs. only 6% for email.

  • 60% of consumers read texts within three minutes.


That level of immediacy is unmatched. For collections, it means faster responses and fewer accounts slipping into delinquency.


Email Statistics: Detailed, Targeted, and High ROI

Email remains one of the most effective digital channels:

  • Every $1 spent on email marketing yields $36 in ROI.

  • Automated, event-triggered emails see conversion rates up to 10× higher than batch sends.

  • Personalized messages lead to higher open and click-through rates.


Emails allow businesses to include invoice details, payment links, and contact options—giving customers everything they need to act immediately.


Why Combining SMS and Email Works Best

When SMS and email are used together, they create a multi-channel collections workflow that reaches customers instantly (via text) and informs them thoroughly (via email).


Example Workflow:

  1. Pre-Due Reminder:

    • Send an email with invoice details three days before due date.

    • Follow up with a text reminder on the day payment is due.

  2. Overdue Notification:

    • Send an email with subject “Your invoice is now past due.”

    • Follow with an SMS including a quick payment link.

  3. Follow-Up Cycle:

    • Continue with friendly, automated reminders at specific intervals.

    • Offer self-service payment portals for quick resolution.


This method keeps communication consistent, professional, and fully automated—helping your team collect faster without added workload.

Results You Can Expect

Companies using automated SMS and email in collections report:

  • 30–40% faster payments

  • Significant DSO reduction

  • Improved customer satisfaction

  • Reduced manual collection costs

At Divinity Software, our Payment Module alone drives over 20% of total monthly revenue for clients—proving that automation and communication go hand-in-hand for better financial results.


How Divinity Software Makes It Easy

Divinity Software’s all-in-one AR and collections solution empowers businesses with:

  • Automated SMS, IVR, and email communication

  • Data-driven insights and analytics

  • Seamless payment integrations

  • Hybrid-cloud architecture for secure data management

  • Customizable workflows that adapt to your business needs


We help you build smart communication strategies that deliver results—without manual effort or compliance risk.


Compliance & Best Practices

Before launching your SMS or email campaigns:

  • Ensure opt-in consent for all communications.

  • Follow CAN-SPAM and FDCPA guidelines.

  • Keep tone professional, respectful, and clear.

  • Offer easy opt-out options and self-service payment links.

  • Use segmentation and analytics to personalize outreach.


Final Thoughts: Communication That Collects

SMS and email aren’t just tools—they’re the future of digital collections. By leveraging automation, analytics, and multi-channel communication, businesses can reduce delinquency, improve cash flow, and deliver a better customer experience.

At Divinity Software, we make that future simple. Our technology helps you connect, collect, and grow—all in one secure platform.


Ready to modernize your collections process?

Let’s talk about how Divinity Software can help you automate communication and accelerate cash flow.

 
 
 
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