For someone who repeatedly forgets to pay utility bills on time, the automated alert is a godsend. But there's more to this rather innocuous channel of communication than meets the eye. In fact, meaningful alerts sent out in real or at the right time are
a great platform for connecting with customers. And the best part is they are non-intrusive and can be personalized to customer's needs.
Banks could look at monetizing mountains of mundane data by presenting them as actionable alerts. For instance, they could suggest alternative investment options to a customer with a term deposit that is maturing soon. Or they could offer foreign currency
or travel cards to someone who just made vacation arrangements online.
Apart from being a useful, albeit minor, channel for sales, the alert is also a handy tool of customer service. Most banks offer customers a bunch of alert options to help them manage their savings accounts. These alerts notify account holders of events
that they themselves deem as important - a large withdrawal, an overdrawn account, or a check deposit, for example.
Another important application of the alert is security. By confirming every vulnerable activity, such as a purchase on a credit card or an online transfer or funds, as it happens, in real time, via alerts, banks can not only arrest the damage in a fraudulent
transaction, but also reassure customers about the safety of their transactions in the normal course of events.
That being said, the alert is only effective when it is sent in real time or at a time, which fits the current context. When banks send out unsolicited alerts, they must ensure that they are indeed relevant to the recipient. And when it comes to routine
alerts, banks must offer variety and flexibility of choice to the end users. In other words, customers - and not their banks - must determine which alerts they will receive, through which channel, and at what frequency.
To wrap up, alerts are a unique way of establishing customer connect and also increasing brand recall. Not only do they give customers what they want but also benefit banks by reducing the number of inbound enquiries because banks can now share information
proactively with the customer.