Why Text Messaging Is Your Secret Customer Loyalty Weapon

Shep Hyken
Why Text Messaging Is Your Secret Customer Loyalty Weapon
Why Text Messaging Is Your Secret Customer Loyalty Weapon
When was the last time you changed your mobile number? For most people, especially younger generations, the answer is rarely or never. Our phone numbers have become as crucial as our Social Security numbers—a vital identity marker that we protect and retain for years to come. This reality presents an incredible opportunity for businesses looking to build stronger customer relationships. 
If a customer trusts you with their mobile number, they’re giving you direct access to their most personal communication channel. That’s a privilege you can’t afford to waste. The statistics tell a compelling story: 95% of text messages are opened and read within five minutes. Compare that to email, where only 22% are ever opened. When I check my phone after a meeting, I might have two or three unread texts, but thousands of unread emails. The difference is stark.

Text Messaging Has Evolved Beyond Simple Messages

We’re no longer just sending plain text between friends. Today’s messaging capabilities include rich communication services (RCS) that are branded, secure, and interactive. It’s like watching The Wizard of Oz transition from black and white to color—a complete transformation in how businesses can connect with customers.

What makes this evolution so powerful is that it meets customers exactly where they want to be met. Our research indicates that 90% of all customers, regardless of generation, prefer to communicate via text messaging. Yet only 40% have ever received a text from their financial institutions or other businesses they deal with.

Even more telling: 50% of Gen Z and millennial customers will leave their financial institution if it doesn’t communicate with them via text. The message is clear—customers have choices, and they’ll exercise them.

The Business Case for Text Communication

One of our large credit card clients discovered that what took an eight-minute phone call could be resolved in a two-minute text conversation. Their customer service representatives could handle multiple cases simultaneously, with all interactions stored for future reference.

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This efficiency extends beyond just saving time. Consider these advantages:

  • Texts provide a level of anonymity that customers appreciate, especially in sensitive situations like discussing financial difficulties
  • Messages can be personalized based on customer history and preferences
  • Communication can include rich media, payment options, and interactive elements
  • Customers feel more in control of the interaction

The mobile-first approach also solves the “app fatigue” problem. Most of us are constantly deleting apps because we have too many. Text messaging provides a direct channel that doesn’t require downloading yet another app.

Respecting the Privilege of Direct Access

With great power comes great responsibility. If a customer gives you their mobile number, they’re extending significant trust. Abuse that trust with irrelevant marketing messages, and they’ll block you forever—potentially ending your relationship.

This is why carriers and regulators have established strict guidelines. When you receive a message from a five or six-digit code (not a regular phone number), that sender has gone through an extensive underwriting process with carriers to ensure they follow a strict code of conduct.

Violate those rules, and you’ll be shut off permanently. This protection helps maintain the integrity of text as a communication channel and prevents it from becoming as cluttered as email.

Building Loyalty Through Mobile Communication

When a customer shares their phone number with you but not with your competitors, you’ve gained a significant loyalty advantage. You have direct access to their attention in a way others don’t.

The key is providing value with every interaction. Whether it’s account updates, payment reminders, or special offers, each message should enhance their experience with your brand.

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Remember that customers will always win because they have choices. In today’s on-demand, real-time world, you must meet them where they want to be met throughout their entire journey with your business.

If you’re not incorporating text messaging into your customer experience strategy, you’re missing a powerful opportunity to build stronger, more loyal relationships. The businesses that recognize this shift and adapt accordingly will have a significant advantage in the years ahead.

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Shep Hyken has been at the forefront of the CS/CX Revolution for decades. His experience runs the gamut from helping notable companies like Disney and FedEx to improve their already outstanding customer service, to helping small and mid-sized organizations transform poor customer experience into a highlight of the organization.