Modern life is filled with tasks competing for our attention and consideration. Text messaging provides a way to have a dialogue that more easily fits into our active and connected lifestyles. A quick reply can resolve an issue while keeping people in step with multiple concurrent responsibilities.
Besides its wide acceptance in our day to day lives, text has become an effective channel for call center collections. Forrester Research reports that over 23 billion messages are sent every day, and HubSpot found that 83% of text messages are opened within 3 minutes. With these hard-to-ignore statistics, collections organizations are compelled to leverage the power, immediacy and effectiveness of this channel.
And one-way “text blasts” aren’t the only route, as the average person responds to a text message in 90 seconds. Capitalizing on this immediate response, implementing a 2-way text strategy that allows debtors to interact with an organization can be even more effective in capturing payments. The responses from an organization can either be automated with canned text replies or actions, or they can be live interactions via an agent communicating directly with a debtor.
One of our financial clients had been using 1-way text payment reminder alerts as part of their collections strategy. While this was effective in motivating debtors to take action, it still required agent time and effort in order to collect the payment. This financial institution went on to implement a 2-way text strategy, allowing for both past due reminders and auto-pay options. They experienced over a 50% increase in same-day payments with this new strategy, demonstrating that while 1-way text is still powerful, 2-way text impacts the bottom line.
Start adding text to your collections strategies, download our best practices guide based on YOUR questions, Five Questions About Text Messaging for Collections.