It’s hard to deny the benefits a mobile marketing strategy can bring to almost any industry, but the financial sector is a particularly notable candidate.
Mobile makes the banking experience better for the user, saving them a significant amount of time by practically eliminating the need to set foot in a physical bank ever again. With something as dominant in our lives as banking, the cumulative amount of time saved adds up to a drastically more convenient experience than even 15 years ago.
As the fastest growing marketing and customer service channel in finance, mobile is bringing a wide range of benefits. Let’s examine a few of the main ones:
Low-balance alerts are only effective if they reach the customer before they go overdrawn. If they arrive too late they only add insult to injury. Traditional channels like voice messages and email simply don’t cut it. The vast majority of text messages are opened and read within minutes of receipt.
Almost 9 in 10 UK adults own a mobile phone, and 75% of them regularly send and receive text messages. Unlike proprietary apps, SMS messaging is compatible with every single one of those devices. Most analysts agree that between 90-95% of incoming text messages are read within minutes, compared to just 10% of emails being read at all. SMS messaging represents the best, most reliable form of mass communication there is.
Timely notifications regarding ‘suspicious activity’ are helping banks fight fraud more efficiently. The quicker a customer learns of potentially fraudulent behaviour, the less they stand to lose. Grabbing the attention of a banking customer with the aim of establishing the legitimacy of activity on their account is made considerably easier with SMS.
The ability to talk to your customers in a timely fashion, on a platform that’s convenient to them, will ultimately crank up your retention rates. SMS notifications, with all the benefits of timeliness and reliability we’ve explored here, become more reassuring as time goes on. If they are adding value to the customer experience, they won’t be switching banks in a hurry.
Return on Investment
If you’re still on the fence about mobile marketing, remember this: texting equals profit. It’s cheaper and easier to use, reaches more people, and facilitates more transactions than any other form of communication. SMS messaging gives you an ROI like nothing else, so the only question for banking institutions and credit card issuers without a mobile marketing plan is: why not?