The Case for your Financial Institution to Utilize SMS Marketing

Text marketing is becoming an increasingly essential tool for financial institutions aiming to engage consumers effectively. Traditional marketing channels like email, direct mail, and in-person events are still in use, but the shift towards mobile devices is undeniable. Research by the Financial Brand reveals that 74% of consumers check their phones within 30 minutes of waking up, indicating that mobile devices are a primary medium for consumer engagement.
To capitalize on the ubiquity of mobile usage, SMS has emerged as a potent method of text marketing. Financial marketers must consider not only what to market but also how to market effectively using text messages. With consumers most active on their phones, text marketing provides a direct and immediate way to reach them, making it a critical strategy in today’s digital landscape.

What Can You Market?

If your FI doesn’t have a VIP Member Program or a Member Loyalty program, this is a great place to start. 90% of consumers found value in an SMS loyalty program, according to Finances Online. Having a dedicated line where members can access special promotions or new products is a great way to increase account utilization and build stronger member portfolios. Natco Credit Union saw great success in setting up a VIP opt-in number for their members, with 100 opt-ins within 5 minutes(link to case study). 

SMS marketing isn’t just for loyalty programs, and can be used alongside almost all other marketing channels. Email newsletters with relevant links can be shortened and customized to a more concise SMS message with auto response keywords represents a more effective method of communication. Members like concise messaging, and the 160 character limitations to SMS messaging allow for just that. Promoting new products with next steps to sign up can move away from mailers & emails to automated texts sent out on a cadence of your choice. With an ability to include secure links, and with proper TCPA compliance, an effective digital communication platform allows your team to use SMS across multiple funnels of your marketing efforts.

There are three key elements to keep in mind when ensuring success in whatever marketing SMS efforts your FI decides to implement: Getting Opt-In’s, Time Sensitivity & Personalization

Keep It Compliant

Getting Opt-Ins for your marketing communications makes the conversation you’re establishing with the member a two way street. Text Messages have a 98% open rate, compared to 20% for emails, so trying to hide an unsubscribe button or spamming them with messages will lead to Opt-Outs or worse. Members want to text and don’t need to be nudged along in the same ways with email or direct mail. Additionally, and more importantly, Opt-Ins are required by law to ensure TCPA compliance, and communication is only as effective as it is complaint.

Keep It Time Sensitive

Whether it’s a welcome message for a new joinee or the marketing of a debt consolidation program around the holiday times, keeping your messages time sensitive is highly important. With members checking their phones and texts frequently, more timely messaging & marketing becomes even more critical.

Keep it Personal 

Members prefer texting as their method of communication more frequently, as it represents a more casual way to communicate. Keep this in mind when utilizing SMS for marketing purposes, and be sure to not go overboard with formalities. Keeping your messaging complaint and avoiding hotlisted words is critical, but that doesn’t mean your messaging can’t feel like a text from a friend. In fact, to ensure the best success of your messaging, the text should feel personal to that level.

Keys to SMS Marketing success in Financial Institutions

With Texting becoming a more critical part of your digital communication, make sure to include it within your marketing efforts as well, to reap the full benefits of complaint SMS communications with your members. To find out more about how Eltropy is enabling our partners to better communicate with their members through a digital omnichannel platform, request a demo today.

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by Team Eltropy

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