There are few things more important to businesses than increasing revenue and reducing costs.
Improving operational processes can help businesses create better customer experiences while maximizing staff efficiency.
With much more product parity and an oversaturated market, providing a better than good customer experience is crucial for survival in any industry.
According to Walker Info, by 2020, customer experience will overtake price and product as a key brand differentiator.
One way for businesses to provide a better and more frictionless experience for customers is by utilizing text messaging. The speed and convenience of text messaging help businesses better engage with customers and reduces potential revenue loss.
Here are 5 ways businesses are potentially losing revenue because they are not texting with their customers.
1) Not Sending Reminders & Notifications via Text
Sending reminders and notifications through text messages is fast and efficient and can be read anywhere, anytime. There are two types of reminders that businesses should send to their customers to avoid revenue loss: Payment reminders and appointment reminders.
Late payments are bad for both businesses and customers. For the business, they lose revenue, and for customers, they get hit with late fees as well as a reduction in their credit score.
Late payments have been a problem for businesses for quite some time. According to research, 1 in 4 U.S. adults doesn't make their payment on time.
There may be many reasons someone doesn't pay their bill on time, but one way to reduce late payments is to send a quick text message to the customer. Texting has been growing in popularity for businesses as a more effective way to communicate with customers, and today, 80% of businesses use text messaging.
Appointment reminders via text messages can also be useful for getting and retaining more customers. For example, a hair salon can send a quick text message (which can be automated) to their customers the day of their appointment. This can decrease appointment no-shows due to how easily the customer can see the message versus having to log into email or having to check voicemail.
2) Not Sending Promotions via Text
Coupons work only when they are relevant and timely. For someone that doesn’t check their emails often, coupons sent via email are not effective at all, rather they become spam.
In fact, coupons and deals are the number one reason customers sign up for a brand’s text messages.
Text message-based coupons have several advantages over email including higher open rates, as well as higher response rates. Texting allows you to reach more customers while keeping the message short and straight to the point. (Case Study: Weight Watchers Gets 54% Response Rate from SMS Promotion)
However, businesses shouldn’t just rely on text messaging. Instead, every marketing campaign should be integrated with every channel possible to create a seamless omnichannel experience. Visibility to your marketing campaigns in multiple channels increases your ability to reach customers no matter where they see your brand whether it’s online or offline.
3) Not Providing Customer Service via Text
Good customer service is no longer good enough. Consumers today value their time and demand a faster and more frictionless customer service experience.
I don’t need to show you any stats on phone call based customer service because you most likely experienced it yourself and know how much time you’ve wasted waiting on hold.
Even with emails, the average response time is over 7 hours! Nobody has time for that.
Text messaging improves your staff efficiency while providing faster service for your customers. Texting can also help reduce miscommunication between your customers and staff when they are in loud places where “can you hear me now?” is an issue.
Another way texting can provide a better experience is through surveys. Many businesses have started to send text message surveys after an interaction with a customer to get real-time feedback. This is extremely useful because the business can receive immediate feedback while the customer’s memory is still fresh and respond instantly to any negative feedback before it makes it on a review site.
4) Not Streamlining Processes via Text
One major challenge businesses have is improving workflow processes to reduce manual work, which costs them money. Poor business processes increase operating costs and create a bottleneck which causes the customer experience to suffer.
Text messaging helps to improve business operational efficiency in many ways. Here are three examples.
Reduce backlog for customer service – With texting, customer service agents can engage with multiple customers at one time, while phone calls can only support one customer at a time, thus creating a backlog of frustrated customers.
Automates notifications to reduce manual work – Manually calling each customer is not efficient and emails rely on the customer checking it at the right time. Text messages alerts and notifications can be automated to ensure that each customer gets the message in real-time while eliminating the need to send it manually.
Streamlines requests with system integrations – Service-based businesses can streamline customer requests by integrating text messaging into their internal systems. For example, a hotel guest can send a text message to request room service or housekeeping and the message would automatically get routed to the proper department to fulfill these requests. This saves a lot of time for the hotel staff as it eliminates the need to manually redirect these requests.
5) Not Accepting Orders via Text
The concept of text message ordering is new for businesses. The most common use case right now is in the restaurant and food & beverage industry.
Allowing customers to text message their orders reduces long lines and wait times while reducing wrong orders placed via phone calls. Texting allows restaurants, delis, coffee shops and more to accept more orders and reduce the chance of potential customers walking away due to long lines.
As you can see, text messaging is a valuable channel for businesses to utilize to not only help reduce revenue loss but to also improve the overall operating efficiency of the business while creating happier and more loyal customers. Think about how your business is operating today and find a way to incorporate text messaging into your improving your overall customer experience strategy.
Want to start texting with your customers? Take Zingle for a test drive for free!