interactive mobile messaging: a next generation communication strategy that works
DESCRIPTION
Learn why interactive text messaging provides greater value and improves customer service through low-cost, actionable conversations that are fully-automated.TRANSCRIPT
Interactive Mobile Messaging:
A Next-Generation
Communication Strategy That Works
1
Why Interactive Text Messaging
Is Critical To Your Organization
2
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Why Alerts Matter
Alerts can serve as the customer’s financial nervous system and touch almost every aspect of banking.
Alerts will introduce customers to mobile banking and payments.
Financial alerts are conversation-starters with customers.
Timely alerts can deputize the customer.
Alerts can build customer trust.
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Javelin’s Five-Year Forecast for Financial Alerts
62 Million Online Households Will Receive Alerts by 2014
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52 54
56 58
60 62
48 50
53 55
57 60
23 25
29 32
35 38
-
10
20
30
40
50
60
70
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mil
lio
ns
of
Us
ers
Millions receiving financial alerts (both SMS and e-mail)Millions receiving e-mail alerts
Millions receiving SMS alerts
© 2009 Javelin Strategy & Research
Actuals Forecast
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Bullish Signs for Mobile Banking
Ubiquitous devices.More banks are offering it.Consumers are switching banks for it.
8% of switchers in first quarter!Smartphone frenzy.Affordable data plans.Demand for downloads.Range of products and price points.
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2 of 3 Consumers Consider Alerts Useful
Usefulness of Alerts to Detect Fraud and Manage Finances
6
32%
33%
27%
5%4%
5 - Extremely useful
4
3
2
1 - Not useful at all
Q25: How would you rate the usefulness of financial alerts in helping you detect fraudulent activity or manage your finances? On a scale of 1 to 5, let 1 represent "Not useful at all" and let 5 represent "Extremely useful."
March 2009, n= 2,641Base: All households with banking products.
© 2010 Javelin Strategy & Research
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Most Consumers Want to Share Responsibility for Protecting Their Accounts
Consumer Attitudes for Who Bears Primary Responsibility for Account Security
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4% 5% 51% 24% 16%
0% 20% 40% 60% 80% 100%
All households
1 - Solely my responsibility 2 3 4 5 - Solely the bank's responsibility
Q10: When it comes to protecting your financial accounts from fraud, who do you think should be primarily responsible? On a scale of 1 to 5, let 1 represent "Solely my responsibility" and let 5 represent "solely the bank's responsibility".
March 2009, n=2,641Base: All households with banking products.
© 2009 Javelin Strategy & Research
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All Generations View Alerts as Effective Fraud-Fighting Tools
Usefulness of Financial Alerts to Prevent Fraud (by Generation)
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All consumers
Gen Y
Gen X
Baby boomer
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
31%
23%
27%
34%
33%
32%
34%
32%
28%
33%
30%
26%
5%
7%
5%
4%
3%
5%
4%
4%
5 - Extremely useful 4 3 2 1 - Not useful at all
March 2010, n= 1,870, 2,086, 1,208, 4,979Base: All consumers with financial products.
© 2010 Javelin Strategy & ResearchQ25: How would you rate the usefulness of financial alerts in helping you detect fraudulent activity or manage your finances?
What Is Slowing Consumer Adoption
Of Mobile Alerts?
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Seven Critical Flaws of Alerts
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Not useful enoughNot woven into everything an FI doesHeadache to set up and tailorNot timely enoughNot actionable enoughPoor marketingNot safe enough
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Early-Stage Volatility: Preferences for Alerts Shift Over Time
Most Valuable E-Mail or Text Alerts (2007-2009)
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2%
9%
14%
24%
35%
33%
35%
33%
4%
12%
26%
35%
42%
35%
31%
38%
5%
4%
11%
24%
26%
31%
38%
40%
0% 10% 20% 30% 40% 50%
Other, please specify
Addition or subtraction of registered users
Notification of application of credit
Notification of transfers from or to an account
Changes to personal information (password, phone number, e-mail)
Confirmation of a deposit
Notification when a bill is due or has been paid
Notification when balances fall below a pre-set level
2009
2008
2007
Q24: If you were given the ability to receive alert messages (either by e-mail or SMS) on your immediate financial status, which of the following would be of value to you? (Select up to three)
March 2009, 2008, 2007, n=2,641, 2,256, 1,972Base: All households with banking products.
© 2009 Javelin Strategy & Research
Consumer ratings for four alerts plunged 8-16 percentage points from 2008.
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Hispanics and Asians are Growth Segments; Multilingual Programs Help Remove Barriers to Entry
U.S. Demographic Projections
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85%
4%
11%
1%
67%
14% 13%
5%
47%
29%
13%9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
White Hispanic African-American Asian
1960
2005
2050
© 2010 Javelin Strategy & ResearchPew Research Center – U.S. Population Projections 2005 – 2050 February 2008
How to Identify Which Mobile Alerts
Can Add Customer Value And Reduce Costs
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Consumers Desire to be Contacted Through Various Channels
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2%
3%
6%
16%
32%
41%
0% 10% 20% 30% 40% 50%
Other, please specify
By calling your work phone
By text message (SMS)
By e-mail
By calling your mobile phone
By calling your home phone
Percent of Consumers
March 2010, n = 5,211Base: All consumers.
© 2010 Javelin Strategy & Research
Q50: If your bank or credit union believed there was fraudulent activity on your account, how would you prefer they first contact you? (Select one only)
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Six Segments That Show Significantly Higher Use of Alerts
Usage of Alerts in Previous 30 days (By Market Segments)
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6%
8%
8%
11%
6%
12%
21%
17%
22%
22%
25%
25%
27%
34%
0% 5% 10% 15% 20% 25% 30% 35% 40%
All consumers
Gen X
Online bankers
Gen Y
Tech-savvy
Smartphone
iPhone
SMS
March 2009, n= 105, 314, 403, 536, 2,019, 1,028Base: All households with banking products.
© 2009 Javelin Strategy & Research
Q12: Please indicate the last time you conducted each of the following: Received a financial alert by e-mail (i.e. low balance alert). Received a financial alert by text message (SMS). Online bankers, tech savvy, and Gen X are not significant for SMS alerts.
iPhone users are pace-setters – once again.
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‘Moneyhawks’ are Heavy Users of Banking Services
Figure 6: Services Used in Past 30 Days Cumulatively (Moneyhawks vs. Consumers)
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5%
9%
25%
28%
29%
22%
30%
29%
63%
73%
16%
20%
36%
37%
38%
38%
48%
49%
75%
90%
0% 20% 40% 60% 80% 100%
Transferred funds using a wire transfer through a money service business (such as Western Union)
Exchanged e-mail with a customer service representative
Spoke by phone with a bank or credit union representative
Used an automated telephone system to perform any banking function
Visited a branch for a reason other than deposits or withdrawals
Sent money by e-mail to another person, using a service such as PayPal
Transferred funds to another individual online
Transferred funds between your own accounts from one institution to another institution online
Used an ATM to make a deposit or withdraw cash
Logged into your bank or credit union's website for online banking
MoneyhawksAll consumers
March 2009, n=650, 2,641Base: All households with banking products.
© 2009 Javelin Strategy & ResearchQ12: Please indicate the last time you conducted each of the following: In the last 30 days only other options available.
Moneyhawks• They receive
alerts at least quarterly.
• They comprise 23% of respondents.
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9 of 10 Consumers Take Action When They Receive an Alert
How Consumers Respond to Financial Alerts
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6%
1%
2%
11%
14%
33%
33%
0% 5% 10% 15% 20% 25% 30% 35%
Other
I sign into mobile banking
I stop using the credit or debit card
I don't respond to financial alerts
I go into a physical branch
I call my bank
I sign into online banking
Percent of Households
Q26: How do you typically respond to financial alerts you receive regarding your immediate financial status? (Select only one)
March 2009, n= 2,641 Base: All households with banking products.
© 2010 Javelin Strategy & Research
How To Incorporate Interactive Text Messaging
Into A Multi-Channel Communications Strategy
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Customer-Driven Architecture Will Define the Future of Interactive Finance
Customer Experience and Business Impact
Experience Customer View Provider Impact
Always-on “I’m synched with my money” Loyalty, cross-sell
Real-time “I’m an account monitoring-aholic!”Cross-sell, fees,
loyalty
Transparent “OK, I get where that came from” Costs, selection
Customer-controlled “For my money, I’m in charge” Asset-gathering
Integrated “Now I see the whole picture” Cross-sell revenue
Safe “For my identity, I’m in charge” Cost savings, loyalty
Goal-fulfilling “My provider, my goals” Revenue, loyalty
© 2010 Javelin Strategy & Research
(From collective analysis of Javelin’s 265,000 proprietary industry research of consumers, merchants, FIs, vendors)
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Two-Way Interactive Alerts Allow Customers to Participate in Fraud Prevention
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Two-WayInteractiveAlerts
FIAvoidsPotentionFraudLosses
FIAlertsCustomerofPotentiallyFraudulentActivity
$
CustomerAuthorizesorDeniesTransaction
Customer is EmpoweredtoPreventFraud
© 2008 JavelinStrategy &Research
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Priority No. 1: Identify Alerts That Matter Most To Consumers And Financial Institutions
Javelin Method for Prioritizing Alerts
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Balances fall below a pre-set level
Bill pay due or paid
Transfers
Application of credit
International transaction
Large withdrawal
Confirmation of a deposit
Changes to personal information
Addition or subtraction of registered users
Shut-off of alerts
0
1
2
3
4
5
6
7
8
9
10
0 1 2 3 4 5 6 7 8 9 10
Fin
an
cia
l In
stitu
tion
Util
ity
Perceived Consumer Utility
November 2009, n=2,641Base: All consumers with bank products.
© 2010 Javelin Strategy & Research
Q24: If you were given the ability to receive alert messages (either by e-mail or SMS) on your immediate financial status, which of the following would be of value to you? (Select up to three)
Target alerts that will score highly for both parties.
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Priority No. 2: Minimize The Need To Set Or Tailor Alerts At An Intimidating Online Control Panel
Four ways to improve:Default consumers into
alerts.Recommend “starter
bundles.”Enable customers to set
alerts on the fly.Experiment with
predictive analytics.
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Alan BerreyJuly 21, 2010
SoundBite CommunicationsInteractive Mobile Messaging
Breaking Through the Noise
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direct mail
text messaging
voiceemail
social media
To get desired results,
communications must be...
Relevant Personal Timely Interactive
Interactive Mobile Messaging
• More than one-way mobile alerts
• Sufficient detail and adequate response alternatives
• Clear call to action
• Support for mobile originated conversations
• Channel blending and escalation
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“Interactive Mobile Messaging” is a set of mobile features that are available on SoundBite’s Engage Platform. Based on intelligent rules-based processing, the features include automated mobile conversations, via voice, text, email, or a combination thereof.
Corporate Benefits
• Cost Savings– Reduced operations and
telephony costs– Reduced Agent time/cost
(multi-tasking)
• Service Improvement– Fewer dropped calls due to
hold times– Expanded options for
customers
Consumer Benefits
• Preferred Channel
• Convenience/Productivity– No waiting on hold– Privacy– Reduced redundancy
• Control– No feeling of being stuck on
the phone– Consumer controls the pace
of the conversation
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Benefits of Interactive Text Messaging
About SoundBite Communications
Introduction to SoundBite Communications
Proactive Customer Communications Market Leader• Intelligent platform enables clients to
design, execute, measure and optimize customer communications
• Multi-channel: voice, text, email• Software-as-a-Service (SaaS)• Solutions span clients’ customer lifecycle
Over 200 clients• ~50 Fortune 500 B2C companies
Strong financial position• $36M cash• No debt
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Company Facts
• Founded: 2000
• Headquarters: Bedford, MA
• NASDAQ Ticker: SDBT
• 2009 Revenue: $40M
• 2009 Messages: 2.0B
Key Strengths
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Clients andMarket Position
Innovation Expertise FinancialTechnology
• Proactive Customer Communications (PCC) Market leader
• 200+clients, including ~50 Fortune 500 B2Cs
• Valued set of business partners
• Emerging global position
• 2B+ messages annually
• 10 Years providing PCC
• ~200 R&D man years
• Domain expertise: verticals, channels, and customer lifecycle applications
• Flexible, on-demand platform
• Extensive patent portfolio
• Intelligent, interactive, multi-channel communications
• SAS70 Type II & PCI Level 1 compliant
• Publicly traded (NASDAQ: SDBT)
• $40M+ TTM revenue establishes SDBT as a market leader
• Strong cash position
• No debt
• Free-to-end-user text messaging
• Preference Management
• Interactive mobile
• Contact Center Text Messaging Solution
• First with integrated AVM, text, predictive, and email
• Blending and escalation
7 of the top 10 global issuing
banks
7 of the top 10 U.S. telecom & media providers
5 of the top 12 U.S. retailers
12 of the top 20 U.S. utility providers
~90 collections firms
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SoundBite Users Include ~50 Fortune 500 Companies
More than 200 clients actively use SoundBite’s Proactive Customer Communications offering
Financial Services
Telecom& Media Retail
Energy & Utilities
Collection Agencies
Contact Center
ClientData
Business Applications
Functional /Business Unit
Cli
ents
SoundBite Engage™ Platform
Enterprise Management
Dialog Engine
Voice Text Email
Contact and Preference
Management
Campaign StrategyManager
Campaign and Contact Center Management
Analyticsand Reporting
FTP Automation Agent PortalWeb Services APIClient Web Interface
Sec
uri
ty a
nd
Co
mp
lian
ce
SoundBite Engage Platform
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Consumers
Interactive Mobile Messaging
• Empowers your organization to communicate with consumers over a preferred communications channel using their mobile devices
• Leverages two features unique to SoundBite Multi-Channel Communications Platform– SoundBite Dialog Engine– SoundBite Agent Text Portal
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Dialog Engine Agent Text PortalConsumer
Interactive Mobile Messaging Solutions with SoundBite Engage ™
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Communications Across the Customer Lifecycle
Customer CareCollections & Risk Mgmt
Payments
Customer Lifecycle
Sales & Marketing
Banking Example: Proactive Payment
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PAY
PAYMIN
CONFIRM
Your Bank National account is almost due.(acct# ending 3333) For payment options reply PAY. Questions reply HELP or call 888-000-0000.To end alerts reply STOP
Bank National: Balance $723.44.Minimum pmt $42.18.You can pay from debit acct#_7372. Pay entire balance or make minimum payment. Reply PAYALL, or PAYMIN
Bank National: Please confirm you want to make a payment of $42.18 using debit acct#_7372. To confirm and make payment reply CONFIRM. To cancel reply CANCEL
Bank National: Thank you, your payment of $42.18 has been processed. Confirmation #88128. For more text message options reply MENU
Dialog EngineCustomer
Banking Example 2: Agent Support
Dialog EngineCustomer
Agent TextPortal
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MENU
Free Msg: Welcome to First National! Did you know customer support can be reached by text message? For options, or to send a text msg to a live agent, reply MENU
First Nat’l:You can get info about your acct, service, billing, and more. Reply PHONE, SERV,or BILL. Or to send text to an agent reply AGENT plus your question
AGENT how do I change my payment due date to the 15th of each month
First Nat’l has received your message. An agent will reply shortly. For more text options reply MORE
This is Jen from First Nat’l, I am happy to change your payment due date …
Mobile Originated Conversation
Dialog EngineCustomer
Agent Text
Portal
A printed piece or web site says,“For support text SUPPORT to 77053”
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SUPPORT
ALERT
…
Welcome to First National Bank Support. To check your balance at any time reply BALANCE. To sign up for new product alerts reply ALERT
…
…
Multi-Channel Blending
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“Press 3 to receive an e-bill balance-
due alert…”
e-bill Center
Enter Online ID to view and pay bill:
Online Billing AlertAccount Number: ********23Amount due: $795.62View and pay bill
“Press 1 to hear your balance due now…”
“Your account balance is $795.62. To speak with a
representative, press 1…”
“Press 2 to receive a text message…”
Free msg: Balance due: $795.62 To pay, send reply code “PAY” or call 1-800-123-1234
Your e-payment of $795.62 has been credited to your account. Thanks!2
3
1
SoundBite Financial Services Customer Lifecycle Solutions
Proactive Customer CareWelcome Call Card ActivationContact Verification Program Enrollment Application/Account
Updates Preference Management
Proactive Collections & Risk Management
Pre-Collections ReminderPast Due Reminder Self-Cure
Fraud Monitoring Risk Management
Proactive Payments Payment Reminders Self-Service
Payments Expedited Payments Prepay
Replenishment
Proactive MarketingMessage Opt-in Cross-Sell/Up-Sell
Preference Management Loyalty/Rewards
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Contact SoundBite [email protected]
(877) 768-6324
SoundBite CommunicationsInteractive Mobile Messaging
Javelin provides superior direction on key facts and forces that materially determine the success of customer-facing financial services, payments and security initiatives. Our advantages are rigorous process, independent position, and expert people.
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Thank You
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