How WhatsApp and SMS Complement Each Other in Collections
However, with app notifications and message overload, SMS usage has declined. Nonetheless, business-to-consumer SMS messaging remains strong and reliable.
WhatsApp has soared in popularity, surpassing even social media giants like Facebook as the most downloaded and used app in the UK. Its dominance in instant messaging and video calling has made it a go-to platform for communication. Additionally, younger demographics are embracing WhatsApp as their preferred mode of communication.
Customer Communication Channel Preferences
Customers increasingly prefer messaging businesses over phone calls and emails. Mobile phone usage statistics reveal habits like early morning phone checking, emphasising the importance of using messaging channels to connect with customers.
- 85% prefer messaging a business than a phone call or email
- 67% of people are checking their phones within the first 5 minutes of starting their day
- 90% of people will have at least 1 messaging app by 2023
Different age groups exhibit varying preferences for SMS and WhatsApp. WhatsApp is particularly popular among the 25 to 44 age range, making it relevant for credit and collection services. Meanwhile, platforms like Snapchat cater more to the 16 to 24 age group.
WhatsApp in Digital Collection Strategies
WhatsApp offers significant market share and growth potential for debt collection agencies. Its benefits include the ability to send rich media and integrate seamlessly with other channels. Also, the blue tick verification for business accounts adds a layer of trust and credibility.
A few things to consider:
- Be Where Your Customers Are
WhatsApp has 80% market share and its usage is growing with UK WhatsApp users projected to reach 38.35 million by 2025* - Send Rich Media
WhatsApp caters for sending photos, links, PDFs, etc. - Provide On-Ramps
Make it easy for customers to contact you via WhatsApp by using ‘on-ramps’ like in-app and website widgets and QR codes. - Promote Trust and Credibility
By having a blue-tick verified business account, customers feel assured that a business is legitimate. - Be More Accessible to Vulnerable Customers
Digital channels provide accessibility for financially vulnerable customers by offering cost savings compared to traditional telephone communication – WhatsApp is a free app and everyone has SMS on their phones. - See a Reduction in Operating Costs vs Phone
Digital channel messaging, and even more so digital automation and AI, brings operational efficiency.
SMS outperforms phone and email by 209% and WhatsApp outperforms SMS by >50%
Sources: Statista UK Global Consumer Survey and SMS bump
Importance of Digital Channels for Debt Collection Conversations
Using digital messaging channels to interact with indebted customers brings a host of benefits.
- A selection of channels to use to find the best option
- Asynchronous to allow agents to handle multiple customers at once
- Discretion- customers avoid embarrassment and fear of judgement
- Empower customers – give them back the feeling of control
- Customers get no out of the blue contact
- Communicate in line with customer habits
- Proven by DCAs
- 24/7 availability customers can communicate with businesses after hours while no agents are on hand as AI chatbots can handle the bulk of straightforward queries
Using digital channels to communicate with customers brings in flexibility, and discretion for customers. Using these channels empowers trust, reduces anxiety, and aligns with current communication preferences.
Proven Channel Optimisation Tactics
- Vary linguistics between channels. How you say something makes all the difference.
- Plan timings when switching between SMS / WhatsApp
- Audit and tag client responses, intent, time of day
- Single, multi-touch campaigns using learned patterns
- Use rich content options only when required
- Test, measure, adjust and automate
Success of Debt Collection Agencies Using Digital Channels
Debt Collection Agencies (DCAs) that embrace digital channels enjoy higher success rates due to improved technology adoption.
When it comes to engagement, different platforms yield different responses. Recently, there has been a surge in activity on WhatsApp with people responding on this platform who weren’t on SMS – different people preferring different channels – so in the end using the two channels together often yields the best results.
Engaging is one thing, but are customers completing their journey? To help them along, there are actions companies can take, such as building richer content and saying things in a better way in messages. Often, it’s the little tweaks in wording, etc. that end up having the biggest impact.
Results of Using WhatsApp in Combination with SMS
Combining WhatsApp and SMS yields higher engagement rates compared to using SMS alone. This combination helps complete the customer journey and achieve desired outcomes, as real-life case studies show.
“We were amazed at how high the uplift was for so little effort.” Collections Team Manager at Retail FS
Conclusion
By striking the right balance between WhatsApp and SMS, debt collection agencies can enhance customer engagement and operational efficiency. Whilst SMS is declining year-on-year it remains a strong and necessary channel. A blend of channels works best. WhatsApp usage is the chosen medium in the UK as it has higher response rates than SMS in credit and collections. WhatsApp offers credibility and promotes trust. It also has strong encryption tech and needs to be verified.