Tactical Ideas To Help You Drive Engagement and Create an Exception Customer Experience
A New Challenge in Lending and Collecting Communications
One of the most fun (and challenging!) parts of the lending and collections industries is that consumer preferences are constantly changing – and it’s our job to stay ahead of the curve! For the last several years, and for the foreseeable future, consumers have shown a strong preference for mobile messaging communication.
After all, they WANT to stay on top of their loan payments – but postal mail gets tossed, email inboxes are overflowing, and unknown calls are ignored. In recent history, SMS messaging has won out in terms of deliverability, open rates, response rates, and promises to pays kept against traditional channels. And it’s no surprise – it’s what consumers want!
We are now looking at a new method of mobile messaging communication, Multimedia Messaging Service, or MMS. In a nutshell, MMS gives you the ability to send a larger file, such as a password-protected PDF (for additional security), image, or video, directly within the text message. As we closely monitor our customers and the industry, we are seeing MMS outperform even standard text messaging, and become an integral part of leading lenders’ and collectors’ communications strategies.
MMS Outperforms Other Channels
Why is it gaining steam?
- MMS shows 10-15% higher engagement rates than SMS. Used together in airtight communications plans, our customers are seeing incredible performance in this channel.
- MMS campaigns garner 20% higher opt-ins than SMS. While SMS is still extremely effective, the credibility you can gain by requesting consent with an MMS message, such as a logo, could make or break a payment campaign.
- The average click-through-rate (CTR) of MMS is 15%, and the average open rate is 98% (compare that to 20% open rate for email).
3 Top Ways To Engage Via MMS Today
1. Drive engagement with critical materials. Our Solutions by Text customers are often legally required to send validation letters, which outline what a borrower’s debt is, how much is owed, when it is owed, and to whom. In the past, these validation letters may have been tossed in an unrecognizable envelope or ignored in an email inbox – and with each of these actions, an increasing percentage of your customer funnel drops before ever reaching the desired stage – repayment. With MMS, these letters can now be sent directly within the text message, so your consumers are informed (and you are abiding by all regulation!).
2. Deliver an exceptional consumer experience. We hear on repeat from our customers, leaders within the lending and collections industries – consumer experience is a top, organizational initiative. These organizations know that providing an exceptional experience is not only the right thing to do, but it results in higher engagement, return borrowers, and payments made.
- We see our top performers sending their logo as part of opt-in message to build confidence within recipient base that their payments are going to the right place, thus driving significantly increase opt-in rates.
- These customers are also using video to welcome new borrowers or announce new lending products. They are clearly listening to the market, because 89% of consumers say explainer videos have convinced them to purchase a product or service.
3. Share more information, faster. SMS, one of the highest-ROI and most effective ways to communicate with customers, allows messages to contain up to 160 characters. On the plus side, it forces us to be concise. On the other hand, it often doesn’t let us communicate as much as we really need, or forces us to link out to another app or site – thereby giving the consumer an opportunity to drop out. Sending bigger files (up to 1,000 characters!) helps keep consumers directly in the conversation, without giving them the opportunity to lose interest or get distracted. Here are some key ways we’ve seen successful customers take advantage of the ability to communicate more information:
- Send a PDF or snapshot of a borrower’s current monthly statement, accompanying a payment request, to make sure the borrower has the information they need to make their smartest financial decision
- Send a confirmation of account statement and activity, so the borrower has it for their records in a secure location.
- Immediately share any loan-related documents, prompting higher opens and engagement via MMS, at a significantly lower cost than other traditional channels.
Solutions by Text is thrilled to offer MMS (both inbound and outbound) to our customers, helping them engage and interact more directly and effectively with their consumers. Are you using MMS in your mobile strategy today? Tell us how!
Current customer & interested in Outbound MMS? Reach out here.