Customer Communication Overview
In lending, communication with your customers is critical to your success. A communication strategy, if well-planned and well-executed, can be the difference between borrowers missing payments and borrowers paying off their loans in full.
What is Customer Communication?
LoanPro provides ways to easily communicate with your customers through email, SMS text, automated phone calls, and mail house. The customer communication tools also allow you to create billings statements and custom forms for your borrowers.
Using LoanPro’s tools to communicate with your customers makes communication easier, and it keeps a record of the communication that occurs.
Where Does this Fit in the Big Picture?
Customer communication is one aspect of servicing loans. The means you use to communicate with borrowers will depend on a few factors. First, the loan amount and interest rates will determine how urgent any given communication is and how much money is a reasonable expenditure for a given message. When you're dealing with an account worth tens or even hundreds of thousands of dollars, a 58¢ postage stamp is pretty palatable — not the case with a Buy Now, Pay Later loan where the whole payoff is $100.
Federal and state (or provincial) laws may also rule out some forms of communication. For instance, the CFPB's Small-Dollar Rule stipulates that borrowers may opt out of electronic communication at any time, and that some information must be sent in retainable mediums like a letter or downloadable file.
Lastly, lenders should pay attention to what methods yield the best results. Different clientele may have different reactions to each communication type. Some borrowers will put mail in a neat stack with their other bills to be paid on time; others will cram it someplace and forget about it until a week or two after the payment was due.
In LMS, emails can be sent to individual borrowers or larger groups of borrowers. Their content can be customized with context variables.
SMS messages are handled by our integration Solutions By Text (SBT). You set up an account with them and configure templates, and then you can send those template messages out to borrowers. If a borrower responds, you can write a free-form message in reply.
Automated phone calls are run by our integration with TCN. These calls are one-way communication: The automated call goes out to the borrower, but they won't be able to call you back from that number.
Physical letters that will be sent to the primary customer's primary address.
Custom Forms are templates that can include variables. When the system generates a form for a specific loan, it replaces those variables with dynamic loan and customer information. Once generated, a form can be downloaded, saved as a loan document, or sent to the Mail House.
This Feature Is Not
One thing we should clear up:
- Mail House, Custom Forms, and Emails do not use the same templates. Saving a template in Custom Forms won't save it in Mail House or Email, and vice versa. They do, however, use the same context variables, so you could copy the text or HTML from one and copy it to another.
With the basics out of the way, you're ready to learn the specifics about individual communication tools: