Traditional lenders still control more than 90% of auto finance transactions, according to BCG. But they’ve been reluctant to offer the faster, easier and more personalized experiences that car buyers increasingly expect. That needs to change, and change fast, if they want to hold on to their customers and the lion’s share of the market. A customer communications management (CCM) program can make that change happen because it improves the customer experience (CX).
Staying competitive in 2020 and beyond will require modernizing the customer experience (CX), especially billing and payments, according to Keep Pace with Auto Finance Communications, a new white paper from Nordis Technologies. With the average auto loan now at six years, billing and payments are at the center of the customer relationship. So, providing greater choice, convenience and personalization in billing and payment interactions are fundamental to improving CX and removing barriers to payment.
Four Consumer-Friendly Strategies Made Easy with a Customer Communications Management Program
Auto lenders and servicers need to optimize all of their interactions for mobile devices, especially billing and payments. They also should consider adding fast-growing mobile channels, such as digital wallets. Companies can create branded, mobile-first statements that upload into Apple Wallet and Google Wallet on smartphones. Loan balance and payoff amounts are presented in real-time, with convenient links to online payment options. Push notifications alert borrowers a payment is due or has been received.
Color Your Billing World
Creating a better bill can help improve collections, and color can make a big difference. Pops of color that highlight key information, such as total amount due and due date, attract the customer’s eye. Color can improve response rates, reinforce brand identity and deliver a consistent look.
A customer communications management (CCM) program makes it easy to control and dynamically change the use and frequency of color on each document. While color doesn’t add any cost to electronic communications, printing advances also have made the cost of color for paper documents produced on high-speed inkjet machines about the same as black-and white.
Add News Car Owners Can Use
Billing communications, both digital and paper, offer an opportunity to make life easier for auto owners while keeping the connection with the dealer and manufacturer. Financing firms can add timely service reminders, lease expiration due dates or tips on how to turn in a leased car. Lenders also can add value with cross-sell offers such as warranty extensions and trade-in specials.
Make It Personal
While a growing number of car buyers are seeking more digital billing and payment experiences from auto lenders, most customers don’t want all-digital, all the time.
For receiving bills, payment reminders and other communications, vehicle buyers want to be able to choose among email, text, digital wallet and mail. They are looking for even more options for payments, including automated phone systems, chat, call centers and payment portals.
A customer communications management program gives financing companies the capabilities to deliver these improved customer experiences. With CCM software, companies can create personalized messaging, using the formats and delivery channels each customer prefers. A CCM platform can integrate with print production and mail services and electronic bill presentment and payment (EBPP) systems, offering a complete billing and payments solution. EBPP systems securely enable digital account management and accept a range of payment methods such as ACH, credit/debit cards, Apple Pay, PayPal, and Amazon Pay.
About the Author
Bryan joined Nordis Technologies in 2016 to manage and grow the company’s already-large vacation ownership client base. He also is responsible for business development and market expansion in the healthcare and financial services markets. Before joining Nordis, Bryan spent more than 21 years with Interval International, a leading global provider of vacation ownership services. Bryan graduated from Northwestern University with a bachelor of science in political science.
Bryan Ten Broek
VP Business Development