BEDFORD, Mass., Aug. 4, 2009 (GLOBE NEWSWIRE) -- SoundBite Communications, Inc. (Nasdaq:SDBT) today announced that its Free-to-End-User (FTEU) text messaging solution has been adopted by six of the largest credit card issuing banks in the United States. The solution allows organizations to deliver text messages without the recipient incurring any cost for the communication. These financial institutions rely on FTEU text messaging for fraud alerts, payment reminders, collections, application status updates, service notifications, and more.
SoundBite supports both FTEU text messaging and standard rate text messaging and offers both services as part of its Intelligent Communications Platform, an integrated multi-channel solution that allows companies to quickly and cost-effectively deliver Proactive Customer Communications using automated voice, text and email messaging. FTEU text messaging is currently being used by financial institutions for one-way or interactive communications, and can also be used for customer support activities, such as welcome messages to new customers, insight into accounts, informational updates and more. It allows consumers to receive relevant communications from the brands they trust without the need for a monthly text messaging plan or any incremental cost to their cell phone bill.
A large U.S. bank recently completed a six-month study examining the impact of a multi-channel communications strategy on its collections practice. The bank randomly identified target accounts across all its portfolios (i.e. Card, Mortgage, Auto, etc.) representing various stages of delinquency. Using SoundBite's FTEU text messaging solution, the bank deployed four text message alerts, corresponding to the delinquency stages, with a clear opt-out option. At the end of the study period, the bank reported a significant increase in performance among the accounts that received text messages, including:
- More than ten percent increase in collections
- Decrease in collection costs, roll rates and charge offs
- High return on investment
- Increase or maintenance of customer service levels
"Text messaging is an important new communications channel that more financial institutions and other consumer-based organizations need to use regularly," said Alan Berrey, vice president, Market Development, Text and Mobile Messaging for SoundBite Communications. "Integrating text messaging into a customer communications strategy is a powerful way for organizations to enhance their brand and build profitable, long-term relationships with their customers. Free-To-End-User text messaging, especially, has been shown to be a cost-effective solution and to deliver strong business impact."
Communications Trends Require a New Approach in Customer Contact
The rise in mobile phone usage and the dramatic increase in text messaging are transforming the ways individuals communicate with one another. Preliminary results from the January-June 2008 National Health Interview Survey (NHIS) indicate that the number of American homes with only wireless telephones continues to grow. More than one out of every six American homes (17.5%) had only wireless telephones during the first half of 2008, an increase of 1.7 percentage points since the second half of 2007. This continued shift to mobile communications and the explosive growth of text messaging presents a tremendous opportunity for organizations to communicate with today's mobile consumers.
For more information on SoundBite's text messaging solutions visit http://www.soundbite.com/solutions/text-messaging.
About SoundBite Communications, Inc.
SoundBite Communications provides on-demand, integrated multi-channel communications solutions that enable clients to achieve superior business results. Building on its foundation as a leading provider of automated voice messaging services, SoundBite offers integrated voice, text and email messaging solutions that help clients deliver the right message, to the right customer, using the right channel, at the right time. Organizations in industries such as collections, financial services, retail, telecom and media, and utilities rely on the SoundBite Intelligent Communications Platform to send over a billion messages annually for collections, customer care, and sales and marketing applications. For more information, visit http://www.SoundBite.com.
SoundBite is a registered service mark of SoundBite Communications, Inc.
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