Think about the last time you received a text with a GIF or image. Chances are it cut through the noise of all the other notifications and got your attention. This feeling is the essence of the baseline benefit MMS offers to debt collection strategies. MMS is emerging as another prime option collectors can use to optimize consumer engagement strategies and add an extra layer of authenticity to their messages.
If you have questions about using MMS for debt collection, we’ve got answers. Let’s break down what you need to know about this digital communication option.
What is MMS?
MMS or Multimedia Messaging Service is an extension of SMS that gives the sender the ability to add media rich content (like images, videos, GIFs, etc.) to messages. It’s also important to note that a single SMS message has a limit of 160 characters, while MMS increases it to 1,600 characters. MMS also has data requirements that businesses utilizing it need to be aware of: in most cases, it needs a reliable cellular connection or WiFi to be sent and received, and the size of the file sent through this channel is typically limited to roughly 330KB to 1MB.
Why Debt Collection Strategies Should Consider MMS
Now that we have a clear picture of the parameters, let’s dive into the core reasons why debt collection strategies should consider using MMS:
- Adding Authenticity: Debt collection messages are often met with a bit of skepticism from consumers. This issue has been made worse by bad actors and scams leveraging digital channels to trick consumers. However, these factors have presented an opportunity for MMS. By adding an image (like an official company logo) or other media to a debt collection message, collectors can add a layer of authenticity that gives consumers more reason to trust it.
- Captures Consumer Attention: Consumers today are inundated with notifications, and it’s becoming more challenging to get their attention. MMS adds a visual element that helps debt collection messages break through the noise and spur engagement.
- More Flexibility in Digital Outreach: There are times when a debt collection text message might need to exceed 160 characters. MMS gives businesses more room to explain complex cases or breakdown key account information. For example, a collector could send a branded graphic with a text that shows repayment options in an easy to understand format. With MMS, debt collection strategies have more options to optimize engagement for each account.
MMS Could Deliver Higher-Click Rates in Debt Collection
In many forms of digital outreach, visual content tends to outperform messages that are text only. Businesses across industries are starting to explore visual-based messages to create a branded experience consumers can trust. While there isn’t enough data specifically for debt collection, visual content tends to have higher click rates. An MMS is more trustworthy and can add an extra layer of personalization that aligns with consumer preferences.
As it stands, branded visual content is gaining popularity with consumers in debt collection. It gives consumers added peace of mind that the message is legitimate and can add a layer of empathy. When media rich content is customized in alignment with historical consumer communication preferences, MMS has the potential to help increase engagement, click rates and repayments. As more debt collectors leverage MMS, the industry will gain additional insight into how beneficial it can be.
The Cost Considerations of MMS for Debt Collection
To make an informed decision about using MMS for debt collection, businesses need to be aware of the cost considerations. For starters, MMS is roughly three times the cost of SMS messages. This would likely increase the cost of omnichannel debt collection strategies, especially if MMS is used to a larger extent, but some of this added cost could be offset if the MMS messages yield more repayments.
Another consideration is that MMS could result in cost savings in some cases. One key example is a business sending a model validation notice (MVN) through an MMS message as an image instead of physically mailing it as the first communication. The cost of physical mail is steadily rising, and having a new digital channel to send MVNs through could help offset delivery costs.
Want to Improve Recovery Rates? Retain Can Help
Retain white-label debt collection software optimizes engagement with every account to increase recoveries. Our expert team can help your business find which tools (like MMS) are the best fit to help you engage consumers effectively and potentially recover more. Get advanced AI technology that helps automate digital outreach by finding the optimal time, channel and message that results in happier customers. Contact us today to get started.
