Customer Interaction

Order Form

    This individual Report Text Messaging and Collections: Driving Response Rates 160 Bytes at a Time is available for purchase. This Report is available to members of Mercator Advisory Group’s Customer Interaction Advisory Service. Please be advised that this Report is normally part of a research and advisory service that provides ongoing support throughout the year. As such, this Report contains significant depth of content that is selected for its strategic importance to our members. (For a description of these services, see our Advisory Services section).

    While the Report represents significant analyst time invested, there is no means of our ascertaining if it will fully meet your specific intended purposes. Typically, these Reports form the basis for future discussions with our clients where we are able to fine-tune additional information that we have gathered in the construction of the series of Reports (or locate new information rapidly due to our exclusive focus on gathering information in the payments industry) for specific member needs.

    Unfortunately, in fairness to our paying members, we are not able to offer this level of support for a single Report purchase. We will, however, credit any Research Document purchase against the future purchase price of the service should you become a member within 30 days of purchasing the document.

    The price for individual Report purchases is $2450 per document. 

     

    Use the form below to request this individual Report purchase or

    Click here for a fax-back order form

     

     

     

Text Messaging and Collections: Driving Response Rates 160 Bytes at a Time


NEW RESEARCH PROVIDES GUIDANCE ON ENTERPRISE TEXT MESSAGING IN COLLECTIONS

Text Messaging and Collections:
Driving ResponseRates 160 Bytes at a Time

Boston, MA. - May 26, 2009 -- With delinquencies at an all time high and credit card chargeoff rates exceeding 6%, the role of Collections has moved from standard business function to critical driver of profitability. But Collections is both an expensive and a delicate process. Live operator calls cost $4 and more. How the creditor communications with the debtor also impacts Collections performance.

In a new report, Text Messaging and Collections: Driving Response Rates 160 Bytes at a Time, Mercator Advisory Group explores the impact of the spread of text messaging on business-to-consumer communications through the lens of Collections. Against the background of mobile's spread and exploding text messaging volumes, B2C text messaging has expanded from mobile marketing into financial functions from corporate treasury payment approvals to Collections. The report examines text messaging's role and its key attributes of timeliness and situational relevance as generators of what appear to be a disproportionately positive impact on Collections performance.

"Text messaging has grown from Teen addiction into a national communications staple. As a new channel for business-to-consumer customers, text messaging complements and reinforces what we're already using to reach accountholders. Reaching delinquent accountholders via text is showing solid results," George Peabody, Director of Mercator Advisory Group's Emerging Technologies Advisory Service and principal analyst on the report. "The accelerating effect on consumers of text messaging when used in combination with automated voice messaging and interactive voice response units, never mind traditional media, affirms this new channel's unique value."

Highlights of the report include:

  • The mobile channel reaches more people than ever. According to the CDC, the population covered by landline telephones has fallen below 1970 levels. One in 4 adults between 18 and 34 live in mobile phone-only households.

  • Text messaging isn't just for teens any more. US users send nearly 80 billion text messages per month.

  • Enterprise usage of text messaging requires careful planning and program management, including strong opt-in / opt-out provisions and message content oversight by the ultimate text messaging gatekeepers, the mobile network operators.

  • Text messaging traffic in US financial services applications now exceeds 12 million messages per day and is growing over 100% per year.

  • The application of text messaging to Collections has produced significant results when employed as an element in a multi-channel program.
An Exhibit included in this report:

This report contains 29 pages, 8 exhibit and 2 tables.

Companies and programs mentioned in this report include: Sprint, Verizon Wireless, AT&T, MetroPCS, SoundBite Communications, Walmart, DaysInn, Bank of America, Papa John's, Facebook, Prairie Interactive Messaging, ClairMail, Apple.

Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits. Please visit us online at www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: 781-419-1700 or send E-mail to info@mercatoradvisorygroup.com.


Mercator Advisory Group is the leading, independent research and advisory services firm exclusively focused on the payments industry. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world???s largest payment issuers, acquirers, processors, and associations to leading technology providers.