- Financial services organizations can benefit from using outbound SMS
- Outbound SMS has a much higher open rate than emails
- There are multiple ways for investment advisories, banking, and insurance to utilize outbound SMS successfully
When you think of the financial services industry, the word “conservative” comes to mind. This industry has the reputation of being cautious when it comes to embracing change.
However, to stay relevant and sustainable, the financial services industry must adapt to changing times and to changing customer expectations. Read on to learn about how financial services organizations can use outbound SMS to sell easily and cost-effectively to their clients.
What powers SMS sales in the financial services industry?
To understand what powers SMS sales in the financial industry, let’s take a look at high-volume outbound SMS.
High-volume outbound SMS refers to the ability of companies to text many customers at once. It relies upon application-to-person (A2P) technology; A2P technology queues up messages to thousands of customers, then sends it out at a specified date and time.
The benefit of high-volume outbound SMS is that you don’t need to purchase and program a new phone number – you can use your existing number (saving you time and money).
How can financial services organizations utilize SMS to boost sales?
SMS sales are possible when a contact center has the right technology in place.
SMS messages can be sent out through contact centers. RingCentral’s contact center software enables organizations to send out thousands of messages at a specified date and time.
With RingCentral, sending outbound SMS to increase sales is simple. Messages can be sent from the RingCentral app, so organizations don’t need to involve the IT department.
Why should financial services organizations use outbound SMS?
For a start, customers read text messages far more frequently than they read emails–the open rate for texts is approximately 98%, while it stands around 20% for emails. Moreover, text messages are highly cost-effective; you’ll spend pennies for messages that are almost guaranteed to be opened.
More importantly, customers want to be able to text financial services organizations and to receive texts in return. Research from Harris Poll shows 77% of Millennials look favorably on companies that offer texting capabilities.
How financial services organizations use outbound SMS to boost sales
We’ll look at various financial services companies and how they can leverage outbound SMS to boost sales:
- Investment advisories and financial advisors
Investment advisories and financial advisors
Investment advisories and financial advisors can use financial services SMS for SMS sales in an effective and compliant manner.
One way to boost SMS sales would be to send out an automated notification that it’s time for a portfolio review. Such a review might encourage customers to invest in new opportunities or sell investments. Either of those activities generates commissions for the investment firm.
Another way to carry out an SMS sales campaign would be to send updates about the firm’s financial performance. Positive performance might prod customers to review their portfolios, leading to more revenue.
As with investment advisories, automated notifications that it’s time for a portfolio review could trigger more sales for financial advisors. Also, an update about the firm’s financial performance in the previous year might also make clients consider a portfolio review.
Another way financial advisors could increase their revenues is by offering free events that would attract new customers. These events could be about topics of interest to their clients (such as how to minimize their tax burden). Given that SMS messages have such high read rates, it makes sense to advertise them this way.
There are excellent use cases for outbound SMS to increase SMS sales in banking.
For a start, outbound SMS is a great way to tell customers about new products (such as credit cards or high-interest savings accounts). Additionally, if there are new offers, such as a limited time offer on a new interest rate, outbound SMS is an inexpensive, effective method to share that news.
Outbound SMS could also notify customers with recommendations on services that would help them meet their financial goals based on their history with the bank.
For insurance companies, the opportunities for SMS sales are high.
As with other types of outbound SMS, insurance companies can alert customers about special offers or new products that would suit their needs. This capability is especially useful if the customer has a major life event (new home or car purchase, new driver in household, etc. ).
Some insurance companies offer VIP services to customers. Such VIP programs offer important opportunities for SMS sales. Insurance companies could use outbound SMS to alert those customers to special offers that aren’t available to non-VIPs.
RingCentral’s contact center software enables sales through outbound SMS
Financial services organizations in a variety of sectors can leverage SMS sales in a way that’s cost-effective, compliant, and successful. With RingCentral’s contact center software, it’s easy to reach customers at scale. To learn more about how you can implement high-volume outbound SMS, get a demo.
Originally published Aug 23, 2021