Increasing response rate of a customers who have not repaid back loan
Project Overview
Goal
Verify effective messaging strategy targeted at unresponsive borrowers to get them back on payment plans.
Challenge
Our target audience has ceased loan repayments and remained unresponsive to all communication attempts over the past 3-6 months.
Deliverables
- Snaptesting
- Presentation
- Verified messaging strategy
The Impact
The Outcome
Introduction
About
FUNDATION is a digital financial solutions' provider, which align our capabilities with those of our partners to serve the small and medium-sized business community.
Services
FUNDATION is a digital financial solutions' provider, which align our capabilities with those of our partners to serve the small and medium-sized business community.
Process
Our Approach
We outlined the following key steps for the whole project:
Together with client team, we established clear success metrics for new repayment plan communication amidst the challenge of potentially writing off loans for 100 small business owners, totaling over $2.5 million.
We proposed driving the key behavior by offering a 'way out' of an anxiety-inducing situation. To motivate customers to act, we leveraged the desire to maintain a consistently positive self-image, the fear of financial consequences, and the perception of fair value derived from innovative repayment plans.
The team utilized an SMS gateway as the first line of contact and personal consultants as the second line of contact to quickly build and run the Snaptest, verifying the effectiveness of the new messaging strategy.
Encouraged by the initial response from 30 business owners and an estimated recovery of over $120,000, the Snaptest marked a pivotal moment in our client's approach to messaging and engaging customers in difficult situations successfully and at scale.
Together with client team, we established clear success metrics for new repayment plan communication amidst the challenge of potentially writing off loans for 100 small business owners, totaling over $2.5 million.
We proposed driving the key behavior by offering a 'way out' of an anxiety-inducing situation. To motivate customers to act, we leveraged the desire to maintain a consistently positive self-image, the fear of financial consequences, and the perception of fair value derived from innovative repayment plans.
The team utilized an SMS gateway as the first line of contact and personal consultants as the second line of contact to quickly build and run the Snaptest, verifying the effectiveness of the new messaging strategy.
Encouraged by the initial response from 30 business owners and an estimated recovery of over $120,000, the Snaptest marked a pivotal moment in our client's approach to messaging and engaging customers in difficult situations successfully and at scale.
The Outcome
Behavioral result of SMS Prompt was a success. After the snaptest, 30% of the targeted clients responded within 3 minutes, marking a significant turnaround in engagement.
The Outcome
Behavioral result of SMS Prompt was a success. After the snaptest, 30% of the targeted clients responded within 3 minutes, marking a significant turnaround in engagement.
Business impact
Business impact
Implementation of verified messaging strategy using behavioural principles
Introduction of the "Power Hour" process for call center representatives
Positive impact on customer engagement (30%+ response rate)
Customers back on payment plans limiting our client’s losses. A win-win for everyone.
Quotes
The future:
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