Everyone is talking about the ways in which COVID-19 is altering consumer behavior. Quarantining lifestyle has naturally pushed people to engage more with online and low contact services, not out of convenience but out of necessity. Digital engagement and alternative communication channels saw a boost as well, not just because of distancing but because the pandemic distributed normal operations for so many businesses. Many of these channels were already gaining popularity, we can leverage the insights from the gain in popularity during COVID-19 to create a more effective engagement strategy for a post-COVID future.
Then: 63% preferred text communications from businesses.
Now: 26% increase in SMS use while 93% say they prefer digital communications.
Less than a year ago, in late 2019, an Avochato survey identified that 63% of consumers preferred digital communications from businesses. Since March of 2020, when the Coronavirus struck, providers have reported a dramatic increase in SMS usage, and nearly all (93%) consumers say they prefer to receive digital forms of communication (be they text or email). With numbers this high, we aren’t likely to see a significant change in preferences post-pandemic, so digital communication capabilities (if they aren’t already) should be a top priority.
Then: Digital banking uses up 4% annually on average.
Now: Use up 27% on average.
Prior to COVID-19, consumers’ participation in online or mobile banking rose slightly more than 20% from 2014 to 2019. In just a few months since COVID-19 we have seen a jump in digital banking usage ranging from 22-36% across various income demographics. Understandably, this is in part due to social distancing efforts, however, digital channels of all kinds saw growth of up to 40% since March of this year indicating a more significant change in behavior overall. To keep pace going forward we must have efficient and reliable self-service portals.
Then: Average user spends just under 3 hours per day on their phone.
Now: Nearly half of smartphone users are spending close to 7 hours on their phones per day.
In 2019, the average daily smartphone use in the United States was between 2 hours 55 minutes and 3 hours 10 minutes. Now, since COVID-19, nearly 60% of consumers say they are using their phones more – 46% of them reporting an increase of 4 hours per day. Though shocking statistically, it should not be surprising. The smartphone has become the vessel that encompasses all other behavior trends from new communication preferences to app usage. This not only reinforces but highlights the critical need for a mobile experience.
A lot has already changed since the onset of the pandemic and the longer the COVID crisis lasts the more it works to solidify these new behaviors. Professional Credit is already providing consumers with the engagement model they demand during COVID-19. Through our well established omnichannel communication strategy, mobile app and online self-service portal, we are assisting our clients in practices that create continuity for when this “new norm” becomes simply the norm.