Guest Article: SMS and customer relationships | 160Characters ...

Alfie Ladeira, Product Manager for HP Exstream explains why SMS messaging is a game changer in the future of customer communications software and why it is key to ensuring profit margins are maintained

Faced with an increasingly challenging market, businesses including utilities companies, banks and telecommunication organisations are coming up with innovative ways such as communicating via SMS to ensure customer satisfaction and maintain customer retention. Historically consumers have been reluctant to change either their energy service provider or their bank account. On average only 8% of people switch their current account per annum and you are more likely to get divorced than you are to switch your utilities service provider.

However, this is all set to change, with the challenging economic climate consumers are for the first time ever willing to shop around to ensure they get the best deal. Added to this, the recent changes in RDR regulations (Retail Distribution Review) means that financial organisations of all sizes now need to ensure they have rigorous document and financial processes in place. We?ve had SMS messaging integrated in the customer communications management (CCM) systems we offer for several years, but in the past two years there has been a dramatic increase in the number of consumers demanding communication via SMS.

Some service providers are pursuing increasingly drastic methods to win over new customers and encouraging them to switch. One Irish energy company even offered cash back incentives to inspire customers to sign up to their service.

In March, Sprint and Cisco created a unified communications platform, which allowed customers to manage their data through the Cloud. This service enabled management of accounts through integrated messaging and enhanced mobile integration. However, although this can seem quite complex there are a few simple things which service providers can do to build customer relationships and ensure long term customer loyalty. This can be as simple as operating an effective customer communications strategy through preferred communication methods such as SMS, email and mobile applications.

Consumers and employees are now more mobile than ever and expect communication directly to their tablet or mobile device. This means that multi platform communication is now an essential tool for companies aiming to reach a high level of customer satisfaction.

According to a 2011 survey by Ovum a record 7.5 trillion SMS messages were sent that year and between January and October smartphone usage rose from 30% to 45% of the population. The use of mobile is a key change in the way we communicate. This has meant consumers are demanding access to their information, including bank statements and bills across multiple mobile channels.

As a result, every industry needs to design their communications platform to contact customers across a variety of channels and formats, including SMS messaging. We?re seeing SMS messaging benefiting customers when they?re in the form of vital alerts, for instance banks might use CCM if a consumer was on the verge of their overdraft, or for utilities companies SMS updates can provide pre-emptive information, for instance if there was an upcoming power outage planned.

Companies also implement CCM in the form of links via SMS when an invoice or a statement has become available on their personal portal, most customers are then able to instantly access this information using their smartphones.

I remember when people started to use SMS instead of talking on the phone and many in the mobile phone industry were surprised at how popular it became. If used in the right way, SMS communication can be an ideal way to reach consumers and ensure a concise and important message is read or directs them to account information that is now available for them to access.

Source: http://160characters.org/news/guest-article-sms-and-customer-relationships/

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