Since the onset of Covid-19, the necessity for social distancing and local lockdown mandates have forced consumers to adopt non-traditional methods for conducting business. Studies show significant increases in the adoption of virtual health, online shopping, and mobile banking. Now, after nearly 19 months, experts have moved past the idea we could see a “return to normal”— that is, habits developed during the pandemic are more than covid-culture.
A 2009 study conducted by the European Journal of Social Psychology aimed to determine how habits were formed in “real world” scenarios. The results can tell us something about behaviors that have been adopted during the pandemic. First, for a behavior to become automatic it must be repeated in a “consistent setting.” Next, there is a “plateau” in which repeated behaviors no longer have an impact on habit-forming. That means, once a person reaches their threshold the new behavior is here to stay.
To provide a simple example, we can consider the use of a mobile app to pay a bill. If the consumer repeats this action consistently for a period of time, then utilizing an app to pay that specific bill will become automatic behavior. The study indicates that the amount of time needed to solidify a new behavior differs by individual and can take as many as 254 days, though the average length of time was only 66 days—
Both thresholds are well surpassed by the length of the pandemic.
A recent survey of enterprise decision-makers estimated that the pandemic sped up the course of digital transformation by 6 years. Many businesses are already making moves to capitalize on their new digital landscape, but those still struggling to keep pace are at risk of being left so far behind they are no longer competitive. A larger demographic of digital users means new opportunities for engagement as well as data analysis. Based on numerous market surveys, McKinsey and company recently concluded that to ensure success in a post-covid world, businesses should be closely measuring their digital engagement, taking advantage of data analytics and artificial intelligence, and investing in “customer-facing digital solutions and critical decision-support systems, first and foremost.”
It’s not just online habits, digital communication has seen a boost as well.
Just weeks into the first lockdown, 46% of Americans had increased their engagement with digital communication. Before the pandemic, younger generations showed a greater preference for these channels. Today, channels like email and social media have seen an increase in activity across all demographics. Last year, 64% of consumers said they were spending more time on their phones and 50% claimed to have increased their engagement with text messaging. With consumer preferences leaning into digital communication channels, businesses must also— especially financial services.
We know that pre-pandemic, 51% of consumers take no action after receiving a letter about a past-due account. Our internal research has shown that consumers who engage with digital channels not only are less likely to default on a payment agreement but also resolve their accounts faster. With 92% of Americans in 2021 using fintech apps, the accounts receivable industry must be ready to meet the expectations for digital experience and self-service that consumers are getting across all other industries.
Professional provides digital-first accounts receivable solutions to fit the needs of any business. Our omnichannel communication strategy and user-friendly self-service portals provide consumers the modern technology conveniences they expect, while our robust monitoring systems and data science teams provide the analysis needed to produce industry-leading results.
Learn more about Professional technology here, then contact us to discover how we can transform your consumer digital experience.