My colleague Daniel Melo recently blogged here about a trend of poor performance among new UK card accounts. One of the ways to address performance of new accounts is through better communication — which is where mobile devices and electronic communication channels come in.
Now credit grantors can conduct intelligent, two-way automated dialogues with their customers, using the customer’s media of choice. The use in fraud and collections may be more widely known — we posted a good example involving fraud protection in December — but there are interactive communication opportunities throughout the customer lifecycle. Every touch can assist in shaping customer behaviour, guiding future interactions, and, most importantly, building loyalty.
For example, automated interactive communication would be possible for (but not exclusively to) the following events:
- Early-stage communication
- “Know Your Customer” enablement
- Card / account activation
- Terms and conditions acceptance
- Early stage direct debit / payment reminders
- Spending limits reminders
- Personal detail changes
Empowering the customer in the early stages to interact with you quickly, efficiently, and on their terms, enhances the customer’s experience. These interactions will also open opportunity doors for future communications, while building customer trust and loyalty in ways that drive account usage and spending. For example, a recent FICO survey found that 91% of consumers were happy with “auto resolution” to verify card activity by using mobile communications, and 89% said it increased their confidence in using their card.
More importantly, forming a process of interaction with a customer early on in the relationship will mean that the customer will view later ‘big decision’ alerts in areas like fraud or collections with less suspicion and more urgency. By using data from early interactive communication, you can ensure that speed to response is subsequently maximised, potentially reducing future fraud loss exposure.
Knowing how, and when, to get a response from your customers will maximise efficiency, and can transform the customer experience. This takes “know your customer” to a new level.