Articles
Using Multiple Electronic Channels as Effective Credit-Control and Customer Service Mechanisms
By Steve Orleow - Managing Director, Striata Australia
Communication with customers within an electronic environment is one of the primary challenges facing organisations in today's connected society. The emergence of new communication channels has offered both cost savings and service enhancements - however it is often not the use of a single channel that has most impact, but rather the smart use of several complimentary channels that generate the best results.
In a traditional business environment, paper has been the most effective means to assist in credit control. The introduction of fax gave us further tools that created faster communication. However, many other communication channels have been introduced since then and learning how and when to make use of them has proven to increase a company's effectiveness in credit control. It has also brought the credit control process closer to the customer service function so that all customer-facing employees can see a single view of the customer's account.
Imagine this: the ability to dramatically reduce cheque fraud by sending the issuer an electronic copy of the presented cheque for final confirmation in a secure and encrypted manner via email - the technology to do this exists today.
To communicate with customers in the format that they prefer depending on the type of communication you are sending is easier said than done. However the right technology tools exist today to deal with this challenge successfully. This necessitates the need to gather knowledge of each customer's preferences as well as their contact details for each form of communication.
As customers learn to use these different channels, they will increasingly demand to be communicated to in the channel of their choice. This will differ depending on who is communicating with them and for what purpose; examples include a monthly balance or suspension of service notice by SMS which are time critical, a full account statement in an encrypted format delivered via email when detail is required, or an account reprint sent via fax. Technology adoption by the market will put increasing demands on your team as to how they communicate effectively.
A project recently undertaken by Africa's largest digital satellite Television Company is a perfect example of how multi electronic messaging can be used as a powerful communication tool that has the ability to reduce costs, improved customer service, targeted 1-1 marketing and drastically reduce debtors days.
The project entailed secure monthly email statements being sent to their customers as a way to cut down on costly paper-based communication and ensure that statements were delivered on the day they were generated, and thus improving the cash collection process.
The campaign was well received by customers, however during the proof of concept stage, it was found that the data accuracy issues were causing a significant number of email statements to be 'Returned to Sender' because of outdated email addresses.
The campaign was refined to include a step that, once a bounced or retuned email was received, a personalised SMS was sent to customer requesting their correct email address. From the nearly 40,000 text messages sent, the response rate of 25% was well above expected rates for the campaign, as well as significantly above typical direct marketing response rates.
The email address data was then used to resend the monthly statement as well as to update the customer database within the subscriber management system for future communication opportunities. As a result, over 80,000 documents are now delivered electronically to their customers every month.
Other ways to increase the effectiveness of campaigns such as this is to offer an attractive incentive to the respondents - in the form of special discounts or unique products or services, as well as an ongoing incentive for customers adopting electronic statements and communication - such as passing on the cost savings as a small monthly discount.
Multi-channel messaging combines the flexibility of communicating with customers in the channel of their preference while providing a single view of all electronic communication with each customer (both incoming and outgoing) - this makes customer service and debtors management a whole lot easier.
Where required, payment options can be added to electronic communication, specifically email and SMS, to close the payment loop. The best example of this is having a 'Pay Now' button on a statement or invoice that interfaces directly with the biller's banking facility - either a once-off debit or a credit card payment. All of these have multiple security layers to ensure consumer confidence. This is one of the fastest ways to reduce debtors days and to offer convenience to your customer base.
A final thought should be given to the ability to control these diverse communication channels from a single point. The challenge of these growing channels is that a business can look increasingly fragmented where different and inconsistent information is sent through via different channels. Technology - when properly managed creates a differentiator for your business but can also damage a business that does not effectively control their communication with their customers.
All the functionality exists today to solve these everyday business challenges. Communication from all areas of your business to any channel can be controlled through a central point to ensure improved productivity, credit control effectiveness and customer service.
About Striata
Striata is an application software developer and service provider focused on enabling electronic communication and messaging. The Striata Application Platform provides highly flexible, robust and scalable products deployable across multiple operating systems. Striata's solutions are applicable to organisations that view efficient communication with customers and stakeholders as a vital component of their success. Striata is present in global markets, with offices in Sydney, London, New York and Johannesburg.
Comments from those involved in the campaign
"There are some distinct advantages for organisation that adopt a Multi-Channel Messaging strategy, such as: more timely delivery of invoices and statements, improved collections, reduction in costs and improved customer service". Says Mike Wright, CEO and President of Striata Australia.
Thabo Moabi, General Manager of MultiChoice Africa: "We constantly need to communicate with customers. As communication is invariably costly, we have been investigating cost-effective mechanisms and have found sending communication via email, sms and fax significantly cheaper and more immediate than the printed letter."
Steve Orleow - Managing Director - Striata Australia
E: steveo @ striata.com.au
T: +61 (2) 9363 9655
M: +61 (0)410 246 646
W: www.striata.com.au
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