Podcast ¦ Credit Shift: The Overlooked Potential of SMS in Debt Collection

Key Takeaways

1. Despite being over 30 years old, SMS remains an underutilized channel for engagement in the financial services sector.
2. The potential of SMS goes beyond simple blasts and reminders; it can facilitate two-way conversations that enhance customer interaction.
3. Many organisations rely solely on SMS for calls to action, directing customers to make phone calls, which may result in lower engagement and higher call abandonment rates.
4. Younger demographics, particularly those under 30, prefer digital communication methods over phone calls, emphasising the need for SMS as a primary channel.
5. SMS provides a platform that is accessible to vulnerable populations, including those with hearing impairments, allowing them to engage without embarrassment.
6. Engagement rates for SMS can exceed twice those of traditional dialing; organisations may benefit significantly from investing in SMS capabilities.
7. Automating identification and verification processes through SMS can streamline customer interactions and enhance overall efficiency.
8. The integration of AI and APIs enables more personalised and relevant customer interactions, leading to improved customer journeys and satisfaction.
9. The challenges of previous spam SMS issues have been largely mitigated, making SMS a valuable and trusted medium for consumer engagement.
10. Organisations must approach AI with caution, ensuring compliance and minimising risks associated with generated responses to maintain customer trust.
11. The affordability and accessibility of SMS make it an attractive communication channel that can reach every mobile device on the market.
12. The evolution of rich business messaging represents a significant opportunity for organisations to enhance their SMS strategies.

Key Statistics

• 11% of the UK population is registered as hard of hearing.
• The average SMS is read within 30 minutes, with an approximately 80% open rate.

Key Discussion Points

1. The misconception that SMS is an outdated technology despite its evolution and capabilities.
2. The disconnect in using SMS to direct customers to make phone calls.
3. Changing consumer preferences, particularly among younger generations, who favour digital communication.
4. The provision of SMS as a support tool for vulnerable individuals, including those with hearing difficulties.
5. The impact of SMS on reducing call abandonment and improving collection efficiency.
6. The importance of personalisation in SMS to enhance response rates and customer engagement.
7. The role of automation in improving customer interactions and reducing the workload on agents.
8. The necessity for organisations to innovate SMS strategies beyond one-way messaging.
9. The evolution of compliance in automated messaging to ensure responses align with company standards.
10. The potential of APIs in linking SMS to backend systems for real-time data utilisation.
11. The importance of allowing customers to initiate conversations rather than only relying on outbound messaging.
12. The future of SMS, emphasising the transition to rich business messaging.

Podcast Description
This episode of Credit Shift delves into the complexities and opportunities within the realms of credit, digital debt collection, and digital transformation. Hosts Mark and Graham explore the enduring relevance of SMS as a communication tool, discussing its potential to engage customers on a deeper level. The episode highlights the importance of two-way conversations, the role of AI and automation in enhancing customer interactions, and the need for compliance and personalisation. This conversation provides senior managers in financial services with valuable insights on leveraging SMS effectively to enhance customer experience and drive operational efficiency. Tune in to discover how SMS can be a game changer in financial services engagement.