Financial institutions using text messages as means of communication with their customers, and as well as means of driving sales, are reaping the benefits of the innovative approach, a new research says.
The research, conducted by OpenMarket and Javelin, has been summarized in an infographic entitled SMS Engages Your Most Profitable Customers, which you can check out on this link.
Those that do not use text as communication should adapt, it was said.
The report splits American consumers into multiple categories, or ‘segments’, with two standing out as most important – Moneyhawks and Emergents.
Moneyhawks (13 per cent of the population) are ‘most profitable, yet demanding group’, while Emergents (35 per cent) are mobile-centric. Almost everyone in both groups is using smartphones, 90 per cent of them read incoming messages within three minutes, and are 40 times more likely to take action if approached by text.
By employing such an approach, financial institutions can improve ‘customer satisfaction, improve personal security posture, and evoke trust’.
“Mobile not only is transforming the consumer’s transactional relationship, but it also is the key to redefining personal banking for the most profitable and demanding customers such as the Moneyhawks and Emergents,” said Mark Schwanhausser, Director of Omnichannel Financial Services for Javelin. “SMS is a powerful communications tool because it is part of everyday life, is available on every mobile phone, and triggers immediate responses. Just as important, it makes customer engagement a two-way channel that empowers consumers to initiate contact with their financial institutions, and not just react.”