eMarketer is forecasting a 210% growth in the total value of mobile payment transactions in 2016—up to $27.05 billion from $8.71 billion. Which begs the question, will your business invest in a simple mobile payment? It may no longer be a choice. With a simple mobile payment method, a company can provide services like paying your bills via text. It’s an undeniable mobile trend and giving your customers the ability to pay bills over the phone is just the beginning. What else can it do?
- Parking – Some cites are replacing parking meters with apps.
- Delivery – A quick and easy way to get take out
- Renew vehicle registration – No need to wait at the DMV
- Traffic tickets – Pay for most TVB tickets, or book a court date
- Donate to charity – Relief sent quickly with a text message
While pay by phone services can be quick and convenient for your customers, how can you increase your ROI?
The answer is pay by text.
Scenario #1: Getting an oil change
In this scenario, a customer wants the oil changed on their car. Usually, there is a bit of a risk because they called ahead they would have no idea how many cars are ahead of them. Not to mention, the clerk in the reception area could be too busy helping other customers to take a phone call.
It takes minutes to handle a phone call, but seconds to text.
With the ability to text the business directly, a customer in our example can get an appointment right away. The clerk usually asks for the customer’s phone number and uses this information to find out if the customer’s vehicle information is already in their system. About 45 minutes later, the oil change is complete and the customer may return in about 3,000 miles.
Let’s tweak this scenario to incorporate the power of pay by phone in combination with text messaging.
If it’s the auto repair shop’s policy to get their customer’s phone number, why not give them the option to make payments via text message? This will improve the customer experience and prove that this business values its customers’ time and payment preferences. IVR Text Payment solutions allow a customer can pay for his oil change before his car is even ready to go. The customer can pay, and drive away instead of waiting in line for an available clerk.
Scenario #2: Getting a ride
Services like Uber and Lyft can help people get around when they need a lift. In order to get one, a user is required to download a dedicated mobile app so that a user with a smartphone can submit a trip request. Uber drivers then use their own cars to transport the person. Unfortunately, this is not without problems. Some government entities allege that drivers are not licensed to operate a taxi and it could be unsafe. Some airports have banned Uber from picking up passengers. This is quite inconvenient for someone that needs a ride.
With a simple mobile payment, a customer can get a taxi ready for pickup from a professionally licensed taxi driver. Our simple mobile payment service doesn’t require a customer to download an app. Best of all, it can be easily be integrated into an existing taxi service without the need to purchase additional equipment.
Scenario #3: Buying a car
How can text messages help a customer head out on the highway without being taken for a ride? With a simple mobile payment service, a car dealership can send out a quick reminder that a payment is due. How effective is it? A study conducted by the National Bureau of Economic Research showed this:
- More customers made a payment when an SMS reminder was sent to them a few days before their payment was due.
- Younger customers made payments on time when a reminder was sent.
- People made more payments with reminders vs the promise of a lowered interest rate.
Customers will love the option of making a payment with a text message. Ed Knopp, Morpace vice president of automotive research had this to say, “Consumers are increasingly comfortable communicating informally on their mobile phones and through a myriad of mobile devices. This type of messaging allows for ongoing, immediate dialogue with both parties able to respond.”
A simple mobile payment method allows a customer to make a payment that can be verified quickly, and easily. There’s no need to wait for a check to clear. A car dealership can easily check their reporting and know who paid and when in real time.
Of course, businesses can do much more with text messaging than allowing customers to pay for rendered services. Because they are already texting your business, they can then book an appointment, provide valuable feedback or receive special/exclusive offers all via text. Now, they are more likely to return to your shop next time.
Scenario #4 – Paying for Fuel
Many enjoy the quick and easy convenience of paying at the pump. Unfortunately, this comes with more of a risk than one would think. In some cases, a station may put a hold on a customer’s account that can keep them from making a full payment on their transaction. Even worse, credit card thieves have used technology that allows them to obtain a customer’s information and victimize them.
One way to keep payments quick and easy would be to allow payments by text message. This will allow a customer have convenience at the pump, along with having peace of mind that their information will stay safe. This system would allow for customers to register via shortcode and have their information stored. Payments could then be debited directly from a customer’s account. Alternatively, a running account could be maintained that a customer that would allow a customer to pay at a later time convenient to them, like a credit card. A pay by text option could also allow customers to opt in and learn about specials or even get a heads up when gas prices may shift.
Scenario #5 – Auto Insurance
Text alerts from an auto insurance agent could also allow customers to be able to obtain their ID cards on the go, or update their information at their convenience. Customers could also opt in to learn about insurance bundles, new types of coverage, or what to do should an area be affected by a catastrophe.
Businesses can do much more with text messaging than allowing customers to pay for services rendered. When they can then book an appointment, provide valuable feedback or receive special/exclusive offers all via text this will increase their loyalty.
The mobile trend we’ve been experiencing lately is sure to continue. In order to build customer loyalty & earn new customers, your business has to prove it’s willing to meet its consumers every need. If you don’t have a simple mobile payment method or a professional texting messaging system, give us a call today. Learn more today about our simple mobile payment service, and how it can help increase your business. Our team of experts will work with you to design a customized payment & communication program that meets your exact needs.