The Accounts Receivables Department is all about action. Staying on top of accounts and getting customers to pay you on time takes consistent outreach and persistence. Credit Unions are looking towards technology to make collections more effective.
A mobile device is always within reach and consumers are increasingly more comfortable with online banking, so it’s no surprise that credit unions are seeking ways to tap into mobile technology, namely, text messaging, as a way to engage with members. In this article, we explore how text messaging has helped credit unions reduce collection time.
Richer Experiences Everywhere
Consumers, trained by the rich mobile experiences they have outside of banking, have come to expect more from their credit union. You don’t have to look far to find the data that supports why this channel has come to the forefront:
- Text messages have a 98% open rate
- Text messaging has a 45% response rate (MarTech)
- Texts are typically read within 3 minutes of being received
- Over 6 billion text messages are sent in the U.S. each day. (Forrester)
This, coupled with generations of consumers, namely Millennials and Gen Z, who have not only accepted messaging as a primary communication channel, but have come to expect it, has driven more industries to add messaging into their customer engagement strategy. In fact, credit unions have identified messaging as one of the leading ways to attract and retain younger members.
Reduce Collection Time with Messaging
A recent article from The Credit Union Journal entitled, “Credit Unions’ call center chatter turns to texting,” highlights the incredible results realized from adopting messaging. The article states the many advantages messaging affords credit unions, all of which stem from this channel’s ability to cut through the noise and inconvenience of other channels and engage members where they spend the most time.
One of the most surprising efficiencies has been the reduction of collection time. Before messaging, a significant amount of staff resources were dedicated to contacting members about past due payments. Calling and leaving unanswered messages or sending unopened emails had become the norm. With messaging, credit unions like Southern Chautauqua Federal Credit Union, have seen collection response rates increase from 5% when calling members, to 75% through texting.
Collection calls are placed during credit union business hours when members are usually working as well. Unlike phone calls, messaging allows members to respond to collection notifications more discreetly and when they are available. Members find it difficult to impossible to answer the phone to talk to a credit union staff member, but glancing at a text notification and responding when that member has a few seconds is entirely doable.
Credit Unions Trust Quiq
The ease and convenience of text messaging have touched everything from informing members of branch hours to notifying members of promotional rates or offers. It only makes sense that members positively respond to the ability to engage in a quick two-way conversation about their payment status.
Quiq has been fortunate to partner with innovative Credit Unions and other lending institutions to help them effectively reach their members and customers. There is a growing number of credit unions adopting messaging for a variety of reasons. We invite you to be next.
Quiq makes it easy for customers to contact a business via Messaging, the preferred channel already in use with friends and family. With Quiq, customers can engage with companies via SMS/text messaging, Facebook Messenger, Web Chat, In-App, and Kik for help with their pre-sales and post-sales questions. In return, companies get a digital engagement platform to communicate with customers. Learn more about Quiq today at quiq.com.