Why It’s Time To Consider Integrating Text To Pay Technology Into Your Business Model
The days of credit unions appearing as big, austere businesses are long gone – nowadays, credit unions thrive through personable customer service and solutions. These solutions extend, of course, to payment – and with smartphones becoming as standard to the average person as bank accounts themselves, savvy credit unions are working hard to incorporate smartphone technology into their remit.
With text to pay solutions, credit unions can bypass traditional delays in payment, caused by legacy models of communication (ie. paper invoices/phone payments). What’s more, they’re able to use SMS technology for a range of services that not only drive business but increase the personal touch, meaning happier customers able to use the technology they use the most with your business. So let’s take a look at why text to pay for credit unions is here to stay.
A huge bugbear for any business is the speed by which payments are made and received. With credit unions, payments made on loan invoices can take longer than they should – either due to credit unions using legacy systems like paper invoices or due to extraordinary wait times to speak to customer service representatives – which, inevitably, leads to frustration for customers.
With text to pay, however, there’s no such delay. Invoices can be sent directly to a customer’s phone by customer service reps (or through a scheduled text), and all the customer has to do is tap and pay. No harangued customer service employees, no lost invoices, no endless chasing of payments.
You’re also, through text to pay solutions, able to send reminder texts to your customers should they be late on any repayments on lent money. Texts, unlike emails, have an enormous open rate – meaning that your reminders are much less likely to be missed and much more likely to be acted upon fast.
Better Communication With Members
There’s no denying that relationships make or break your credit union. And without strong communication with your members, in a manner that they prefer, you could be at risk of stagnation.
With 85% of customers preferring to receive a text than a phone call or email, by ignoring this huge preference you risk sending signals to customers that you’re behind the times. What’s more, texting is a growing market – and as legacy avenues for communication die out, there’ll be a young customer base for whom texting is the primary avenue for communication.
Communication with customers via SMS extends beyond traditional text to pay solutions such as paying invoices, too. Being able to communicate with your customers via SMS means that you’re well-placed for general member support, to respond to questions regarding payment, for notification of account information, and for any promotional efforts (which we’ll discuss more below).
You’re also (through the use of an SMS Virtual Terminal that customer service reps can use to send and receive messages) able to respond to customer queries quickly and capably, meaning that customers don’t have to pick up the phone to call an anonymous-feeling call centre – all they have to do is text. It makes sense to us.
Text to pay for credit unions holds a host of other benefits for your business. Let’s consider, for example, promotions.Naturally, your business will want to run offers to entice new members or else generate further business from existing ones. Promotion for these offers, however, is usually pretty pricey.
Being able to target customers via SMS, therefore, is a pretty huge opportunity. A simple message to existing members with a promotional offer can generate thousands of dollars of business; when you weigh it up with how much that text costs to send, it’s a no-brainer.
Another area where text to pay solutions can translate to further benefits for your business is in applications. Let’s say that a customer of yours started an application for a new product, then halfway through it got distracted and then moved on to something else. They want to complete it, of course, but it’s not top of their priority list.
Frustrating for your business, right? And even more frustrating (and costly) to have to designate customer service time to try and chase the information you need.
Using texting solutions for your business can help solve this with huge efficiency. If your customer’s mobile phone number is on file, a customer service rep can communicate with them via your SMS Virtual Terminal to prompt completion of applications – which can often be done through the use of a canned message to save further time. It’ll lead to more applications completed, more loans issued, and more accounts for your business – and with some credit unions reporting a jump from 5% response on calls to 75% response on text messages, it’s an avenue worth pursuing.
The Bottom Line
For credit unions, customer preferences are changing – and if you’re not reacting to increasing demand for text to pay services, you may be at risk of missing what your customers want. Furthermore, text to pay for credit unions means that payments are made faster than ever before – which is more convenient for your customers, and you.
To discuss options for payment integration with your credit union, contact Agile Payments today. With almost two decades of experience in payment integration, our team knows exactly how to help your business move with the times and succeed. Get in touch now.