Consumers demand transparent, reliable business communications

New research underscores the importance for the finance industry to reward customer trust in communications. The findings reveal that an increasing number of consumers are willing to share their details in return for services such as exclusive offers and automated payment reminders. Conducted by business communications provider Esendex, the survey reached 1,000 consumers across the UK and Ireland as part of The Connected Consumer Report 2024.

According to the report, a majority of consumers are open to sharing their contact details with organisations, recognising the enhanced service provided through mobile communications. Only 11% of respondents expressed strong opposition to sharing their details. Additionally, over half of the consumers reported trusting messages from businesses, indicating a generally positive sentiment towards business communications.

However, the survey also highlights the conditional nature of this trust. A significant 80% of respondents stated they would avoid or cease using an organisation if the quality of its communications did not meet their expectations. This figure rose to approximately 85% among consumers aged 18 to 24 and those aged 35 to 44, suggesting a heightened sensitivity to communication quality in these age groups.

Richard Hanscott, CEO of Esendex, commented on the survey's findings, saying, "Businesses are eager to explore new ways to build and maintain meaningful relationships with their customers by understanding their preferences, while managing this information responsibly and compliantly. It is hugely positive news that the majority of consumers trust messages from businesses, but in order to expand and cement this trust, we need to engage with what consumers want - starting with transparent, consistent and reliable communications."

The report also reveals the impact of personalisation on customer engagement. An overwhelming 90% of respondents said that personalisation encourages them to take action at least some of the time, with 30% stating they did so either all or most of the time. Hanscott elaborated, "Personalisation is also proving popular with customers, who are more likely to engage with and respond positively to messages that feel tailored to them. Many are aware that companies need to use some of their data to deliver a personalised experience and are happy for them to do so, provided they have the assurance that this will be stored securely and used ethically."

The findings come against a backdrop of rising debt. Credit card and overdraft debt is projected to increase by GBP £5,000 per household by 2028. Mobile messaging is being increasingly utilised to offer support and guidance to customers, including reminders of upcoming debits. The importance of responsible and personalised communication in this context is accentuated by the financial pressures faced by consumers.