4 Ways Pawnbrokers Use Texting to Grow Their Business

Text messaging is a valuable communication tool your pawnshop needs to encourage customers to pay on their loaned items, attract more foot traffic, and increase overall customer engagement.  


Customers want to text your pawnshop because it’s easier than getting in touch over the phone or going to your physical location. Texting will ignite conversations with potential buyers that will lead to a jump in your revenue and better relationships with your customers.  


Below, find four points that will help your pawnshop text effectively to grow your business.  

  1. Payments are the life and blood of pawnshops, and it’s crucial to get as many on-time payments as possible. The biggest reason customers miss payments is they forget, which is why text reminders are the perfect way to nudge them. Receive more loan payments on time with text reminders. 

Send out text reminders to decrease the amount of time it takes for buyers to close their short-term loans. They can be scheduled to go out a few days before the due date, and on the day itself.  


Depending on what payment tender you agreed on in your contract, you can even request and collect secure payments entirely through text with a payment link. This will work for customers who’ve opted to pay for their loans via debit or credit, instead of cash.  


Current customers will want to follow up with their ongoing payment plan on a pawned item, or an item they have on layaway. They’ll want to know how many payments are left, and you can even text them a copy of your contracted agreement in case they’ve lost theirs.  


Once your business implements texting for collections, you’ll see a significant increase in on-time payments. Texts are read within seconds, and they take no time to respond to.  


  1. Ongoing customer service and communication is key. Customers often have questions throughout the day and night, and you need to be available to answer them.  When customers text in photos of items they want to pawn, you’ll be able to determine the condition and give an estimate on the spot. Serial numbers are important too, and if that’s available, request a photo.  


Customers will also want to ask if your store has a specific item available, and any general questions like store hours and other locations, if you’re a franchise.  Spread the word and let customers know they can text your business number. Promote it on in-store signage, social media, and in-person during a transaction.  


3. Share promotions with potential customers via SMS marketing. Drive sales by sending promotions and letting customers know about hot items in your store through text messaging. 


Schedule the promotional messages to go out at a certain time and date. For instance, scheduled messages work well around the holidays, or other occasions when you need to move lots of product fast. If you have e-commerce enabled on your website, consider texting your customers a link to your website to purchase or claim an item.  


A weekly promotion of rotating items that are for sale is a great way to get the word out and drive traffic to your pawnshop. Advertise what you’re paying for gold, or other items. This is especially valuable to people who’ve already done business with you in the past.  


Mass texting is often very effective at getting people to respond and buy. More importantly, it saves you time to focus on other things.  


  1. Text customers to increase positive online reviews for your store. Your pawnshop needs to be visible on search engines, and getting positive online reviews is the best way to stand out amongst your competitors.


Build your local reputation and drive foot traffic to your business with reviews. Whether customers want to praise your business or give critical feedback, reviews are important. 


Search algorithms are driven by the number and frequency of reviews first, then by star rating. Having more reviews shows potential customers many people already favor your business and have had a positive experience working with you. 


Make your life easier by texting customers for their feedback. Text customers a link to your review page, and direct them to Facebook, Google Reviews, or wherever potential customers are most likely to see them. They’re more inclined to choose the business with the most reviews, because it shows you’re a reputable vendor that locals can trust. Text messaging is the perfect tool to direct more customers to your business, and helps you stand out from the competition. 


Jessica Ayre Marketing Specialist, Text Request