The importance of SMS in any field of work is undeniable as it is the best and easiest way to connect with your customers. Concerning the banking sector which deals with the public, involves policies, money transactions, and public relations.
The banking sector directly deals with a large customer base and here the idea of SMS marketing proves to be effective. The SMS creates a chain between the bank and its customer by regular updating about new policies, credit-card offers, or any new changes in the bank sector.
It covers a vast audience base and educating them with even a small change in the banking sector. Apart from this it enhances the reach and opens the path to a new customer by understanding their banking requirements, their financial planning, status, and future goals.
Here we are reflecting 7 uses of SMS in the banking sector, which are as follows –
Improve user experience –
The SMS is a basic path to reach to maximum customers because it targets a big audience and educate them about benefits, policies, and much more. It’s never been like the old days where you need to stay in a long queue to understand policies, any plans, or investments. The SMS has bridged this gap by providing all the basic information on your mobile phones by SMS. All this has improved user experience by providing all the necessary information on their mobile phones.
Target untapped audience –
The services of SMS is available for any model of phones so this enables the bank to target from lower-income group to high-income groups. And according to their needs educate them about the benefits of banking, available loans, credit card offers, and much more. SMS is the easiest way to reach an untapped audience and provide them with new financial planning, ideas, and effective policies for them.
Text notifications and alerts –
Text notifications and alerts are an effective reminder about any cash deposit, transaction from the account, changes in bank policies, and much more. It helps an individual to be updated with their account status and another new policy, offering by banks. Popping up notification is a good way to keep in touch with customers and their requirements.
Enhance customer engagement –
Be it any sector or any work area it’s important to check properly on our customers. It’s essential to remind customers of our services and as well as understanding their requirements. Keeping a regular check by updating them, putting notification and others enforce customers to look through your work and your services. The text marketing services is the easiest way to reach maximum people by regularly updating them, offering various plans which eventually increase customer engagement.
Opens platform for two-way communication –
This is the best part of SMS as it emphasizes on two-way communication. Through SMS it’s easy to reach the service provider, consulting bank regarding any queries, and much more. Any individual can reach the bank through SMS and can easily look through other essential details. It’s very important to boost two-way communication to build a healthy environment in the banking sector.
Mobile banking –
The small text contains a variety of information regarding our finances, payments, credit card dues, and much more. This SMS services has brought banking to our hands by simply clicking the link, check your details, and complete your payment due, any transaction, and much more.
This has made banking easy and with comfort at your place. It opens up the easiest path of mobile banking by providing basic to the finest details and making your banking experience easy and comfortable.
Establish trust and authentication –
Authentication is important to build customer’s trust. SMS fulfills this purpose by regularly updating the bank services, available loans, and others. Regular SMS services, update to the customer along with open-ended conversations build trust within the customers for your services. It also proves your authentication as the bank is in its reach through an SMS.
These underline benefits prove the importance of SMS in the banking sector. It bridges the gap between users and the baking sector by reaching them through SMS. This enables the customer to trust banks with their money, financial planning, and much more. Therefore, SMS has raised banking standards along with a better customer base.
The changing technology has entirely changed the dynamics of capturing the attention of the consumer in recent times. Gone are the days when capturing a customer was a one time job, with more and more conscious consumer’s marketers have to modify their strategies from time to time to engage the customer with the brand. Thus, the companies need to come up with strategies that appeal to every stage of the customer life cycle which is called as customer lifecycle management
SMS marketing which helps the marketers to reach and target the potential customers by providing tailored content.
The various stages of the customer life cycle and how to use SMS marketing in targeting customers -
1. Reach -
The first phase is when the customer becomes aware of the product or service you are offering. This can happen through several online, offline mediums like television advertisements, online search, cold emails, bulk sms marketing etc.
SMS marketing is one of the most important tools used by marketers as long messages with more than 160 characters gain attention to the customer and has high chances of lead generation. By checking on the frequency of the messages, OTP, attaching files or short link within the SMS and creating customized SMS help the marketers to position their brand in the mind of the customers.
2. Acquisition -
Under the acquisition phase customers place the first order with the brand. This is the step of the initiation of sales and a crucial phase for sms marketing services. Under this step, marketers should interact with customers by regular reminders and alerts, new discounts season, account balance enquiry. The marketers can provide discount coupons with first purchase via SMS, personalized messages which will help in maintaining interaction with customers regularly. It will enhance the brand image of the company and long term profitability achieved from the customers.
3. Convert -
The convert phase is the third step of the customer relationship life cycle. This is the phase under which marketers have to upsell customers to increase their frequency and average order value. To convert the customer, marketers should Incentivize higher spend with bundle deals and offer priority shipping as a thank you along with timely reminders.
SMS marketing strategy will help in coordinating with customers with long term, marketers can bring up new strategies to plan and engage the customers such as sending information of the new product line, discounted deals for the regular customers which will influence the customers to purchase regularly.
4. Retain -
Retaining a customer is the biggest challenge faced by the marketers and with the huge competition, the marketers need to retain the customers who provide regular revenue to the company. The marketers can send timely service expiry reminders, renewal alerts, payment and repair reminders and other notifications on to the customer’s mobile phones, sending them birthday, feedback form etc.
After-sale services play a vital role in retaining a customer as it makes the customers feel happy about the brand. It is expensive for marketers to acquire new customers so companies should work on the strategies to retain the existing customers to ensure the long term profitability.
5. Loyalty -
This is the last phase at the customer life cycle in which the customer becomes your advocates. They not only purchase your brand but also promote your brand through social media or by spreading word of mouth. These are the customers no company wishes to lose.
The marketers have to develop promotional sms methods for such customers such as sending free product or services to build customer loyalty or asking them for feedback regarding the new product launched by the company. Marketers can capture customer feedback by sending mobile-optimized surveys via SMS or can send them referral codes through SMS which will engage them and will retain loyal customers in the business.
All you need to map out how to do sms marketing at every step of the customer life cycle which will help in enhancing conversion rates, lead generation and building a strong brand image.
Bulk SMS marketing is one of the commonly used marketing tools by the marketers as it helps in maintaining direct line to a customer, efficient communication pattern which leads to solid delivery and traceable performance for all steps in the customer’s journey.