Evaluate Your Text Payment Campaigns and Optimize Value
In recent decades, businesses have witnessed a significant shift in how consumers make payments. First, it was using checks and sending payments through the mail, followed by the rise of electronic payments submitted through online portals. Fast forward to today, when consumers have countless methods to make a payment. Despite the variety of options available today, one clear preference has emerged among consumers: text messaging.
Pay-in-text seamlessly integrates text messaging and bill payments, revolutionizing financial account management. It empowers you to engage with customers throughout the entire financial journey, from application to invoicing, and even payment processing! The real game-changer? Your customers can now conveniently access their account information or initiate payments directly within a single text message thread.
Gone are the days of phone calls and direct mail as businesses adapt to this new consumer demand. In fact, 90% of consumers now prefer text messaging over phone calls and email response rates are 8x lower (6%) than that of texts (45%). Why? Because Americans check their phones on average 96 times per day (once every ten minutes). Simply put, text interactions are convenient as they meet consumers where they are, on their phones.
To maximize the potential of text payment campaigns, organizations should closely monitor the following Key Performance Indicators (KPIs) to gauge their success:
Key Performance Indicators (KPIs)
1. Payment Acceptance Rate
Payment acceptance rate measures the percentage of payments made and successfully accepted. This KPI is vital because it directly reflects your business’s revenue generation through text payments.
2. Click-Through Rate (CTR)
A high CTR indicates that customers are engaging with your payment requests, which is crucial for conversion. Monitoring CTR helps you refine your messaging and optimize your campaigns.
3. Customer Satisfaction
Monitoring customer satisfaction allows you to gauge how clients feel about the new payment processes. Satisfied customers are more likely to engage and make timely payments.
4. Collection Rate
The primary objective of any payment system is to increase revenue collection. By tracking your ability to collect, you can measure the effectiveness of your text payments strategy in driving financial growth. Improved collection rates directly impact your bottom line.
5. Cost to Collect
Reducing the cost of collections is a vital financial consideration. It measures how efficiently your business operates in terms of generating payments while minimizing expenses. Lowering this cost increases profitability.
6. Cost to Transact
High transaction costs can eat into your profits. Lower transaction costs mean more revenue retention.
7. Right Party Contact
Ensuring that your communications connect with the correct person is critical for efficient debt recovery. Without right party contact, there is simply no way to collect funds. Increasing right party contact also reduces the likelihood of disputes and incorrect billing.
8. Inbound Call Volume
The reduction of inbound calls while increasing collections is a win-win situation. It indicates that your text campaigns are effective in both resolving customer inquiries and encouraging payments. This reduces the burden on your customer support staff and boosts overall efficiency.
These KPIs play a vital role in assessing the effectiveness of text payment campaigns. By prioritizing these KPIs, lenders and collectors can ensure customer satisfaction while simultaneously improving profitability.
Adoption of pay-in-text positions organizations for success in an increasingly digital and mobile-centric world. As the financial landscape continues to evolve, those who leverage this innovative solution will be better equipped to thrive in the competitive lending and financial space.
Learn how our embedded text pay solution can improve your bottom line. Schedule a meeting today!