Systems Department, Systems Section, Assistant Manager
Mr. Mitsuru Yamagata
Sales Headquarters, Insurance Sales Department, Insurance Sales Section 2
Ms. Kyoko Tsukamoto
Services you can use
SMS Connect (Web Management Screen/API) (Approval Function) (Opt-out URL)
--Could you tell us about MI Card's business and your respective areas of responsibility?
Mr. Mitsuru Yamagata (hereinafter referred to as Yamagata): As our company name suggests, we are a credit card issuing company, issuing cards for the Mitsukoshi Isetan Group. We also sell insurance and financial products to our cardholders.
I belong to the Systems Department and am in charge of system planning.
Kyoko Tsukamoto (hereinafter referred to as Tsukamoto): I am mainly in charge of the insurance business, and in particular, I primarily handle new contracts and follow-up for maturities and renewals for current and former employees of the Mitsukoshi Isetan Group who have contracts in the fields of automobile, fire, and accident insurance. The procedures are conducted remotely, and I basically handle them by talking to customers over the phone.
—What challenges did you face when you first introduced SMS (Short Message Service)?
Yamagata:Regarding the systems department, we implemented this to enhance the security of the website for cardholders by requiring one-time password authentication during login.
Originally, we were using another company's SMS service, but as our number of web members increased, the number of authentication requests also increased, and the costs became prohibitive. We consulted with various companies from the perspective of cost reduction, and that's how we came across Acrite
Tsukamoto:One of the challenges in our insurance sales department is that customers often don't answer our calls. Whether it's because we use toll-free numbers, they might suspect it's a scam, or our business hours don't match their lifestyles, so calls often end up going to voicemail. SMS leaves a record of "proof that the message was delivered," so we decided to introduce it as a way to initiate contact. We wanted to give customers a reason to take action.
Our insurance sales department used to use another company's SMS system, but it was difficult to use effectively in terms of cost and functionality when it came to approaching new customers. Just when the life insurance representative in the same department was facing the same problem, I heard that the systems department had installed a good SMS service (laughs). Mr. Yamagata introduced it to us, and we decided to sign up for SMS Connect
—So, the fact that the Systems Department was the first to implement SMS Connect encouraged the Insurance Sales Department to switch over, right?
—Looking at your company's website, it seems there are still a certain number of non-web members. Is SMS proving useful for them?
Yamagata:We've been using various approaches to increase our number of web members, and we've seen an upward trend over the past year or so. Having multiple methods of approach tends to yield better results, and I think authentication using SMS is quite easy to understand and secure.
--In insurance sales, I think communication with elderly people is also important
Tsukamoto:Many of our existing customers are in their 60s or older, and some are even over 80. I think this is a generation where many people are not comfortable with the internet, but they do understand the general trend towards going paperless, so we carefully guide them by sending them SMS messages. Sometimes they call us and ask, "I received something, what is it?", and there are times when we really feel that SMS is leading to action.
—Was the integration process smooth when you implemented SMS Connect?
Yamagata:Originally, when using other companies' services, we were calling and sending data via API communication, so all we had to do was change the calling method. I think the fact that the specifications were disclosed to us in advance was a major factor in the smooth integration.
Tsukamoto:In terms of switching from another company's system, there seemed to be some slight confusion on the part of the field staff regarding its usage, but there was no major disruption. We've been able to operate it smoothly without any major accidents so far, which I'm glad about.
--How is the usability?
Tsukamoto:I use it myself, and I think it's good. I haven't encountered any problems or concerns so far.
—Has combining phone calls and SMS resulted in any changes in customer behavior?
Tsukamoto:I think so. There have been cases where we received a response immediately after sending it, so from the sales side's perspective, I feel that it is definitely effective. We also receive requests from customers such as, "I can't take notes, so please send it by SMS," or "Phone calls are a hassle, so please just send it by SMS from the start," and we are aware of cases where applications have actually been made via SMS.
Our company has a rule that we can only send pre-defined templates, but if we have a suitable message for your response, we can send it immediately via SMS. Phone numbers are easier to verify than emails, the risk of sending messages to the wrong person is reduced, and customers don't have to go through the trouble of registering their address or sending blank emails, so we feel it's a good channel for both parties
—What about using SMS for authentication purposes? How does it differ from other tools?
Yamagata:In addition to SMS, we also send one-time password notifications via email. The choice between SMS and email is a matter of customer preference. However, objectively speaking, SMS is superior in terms of security and reliability of receipt. You should feel confident receiving an SMS from MI Card's phone number.
With email, there's always a slight delay in delivery depending on the customer's provider, so occasionally it might not be fast enough to meet the one-time password authentication deadline. SMS has the advantage of being less prone to this problem
We haven't received any complaints about it being difficult to use since its implementation, and we've heard from the call center department that it's operating without any particular problems
—Have you noticed any changes in sales activities, such as call connection rates, before and after the introduction of SMS?
Tsukamoto:With phone calls, whether the call connects or not, we have to manually dial each number and enter the history into the company system. Each call takes at least 2-3 minutes, and if it connects, it takes even longer. If it doesn't connect, we need to be prepared to call back. With SMS, once we can extract the target phone number, we just need to enter a pre-registered template message and the name of the approver and press the send button. We can immediately see which customers we can't send messages to, so from a field perspective, we really feel that the difference in work efficiency is enormous.
After sending SMS messages, we found that the actual response rate was around 10%. When we aggregated responses within a week, the rate rose to approximately 8.8%, and including responses after a week or more, it increased to 14-15%. However, the most reliable indicator of SMS effectiveness is within a week. Responses include not only return calls but also actions such as online procedures. While we couldn't extract data for phone calls alone, making a direct comparison impossible, we feel this is a sufficient response rate from the perspective of improving business efficiency
—You've been using SMS Connect for over a year now. Could you tell us about the changes you've experienced since implementing it?
Yamagata:Switching to SMS Connect has allowed us to reduce costs. Since there are no particularly concerning performance limitations, we are actively using it in a variety of situations. I think its use is expanding within our member web services, such as for additional authentication when making important information changes after logging in.
—Are there any precautions or techniques you use when using SMS?
Yamagata:On the system side, the key is to keep it "concise and easy to understand." There's a character limit, and the communication charges change depending on the number of characters, so we try to make it as short and easy to understand as possible. Also, we make sure to clearly announce on the website that the message is being sent from an MI Card number. We pay attention to these two points.
Before implementing SMS Connect, we were sending a different short code only to SoftBank-affiliated carriers, but now we can send it from the same sender number regardless of the carrier, so it's easier for everyone to understand, without anyone wondering, "Which company is this from?"
--Thank you. The strength of SMS Connect is that it can deliver messages to all carriers with a fixed phone number displayed. --How is it in the insurance sales department?
Tsukamoto:In the insurance sales department, we sometimes send out hundreds of emails at once, so we register a large number of standard templates. There's a big risk that if we accidentally click on the wrong one, a completely different message will be sent, so we're always nervous when selecting them. We thoroughly double-check everything to avoid sending the wrong message, and this is something we're instructed to do internally, but it's still very nerve-wracking.
That's why we decided not to send free-text messages. We only send messages that have been approved internally and have been given the stamp of approval for any issues with wording, typos, or phrasing, in order to minimize any risk. We are very careful within the company to ensure that even employees with little experience can follow the manual
—I understand that the approval function was important when using the SMS service
Tsukamoto:The SMS service we used before didn't have an approval function, so we had to prepare one manually within the company. Having an approval function is especially good because it prevents accidental sending and keeps a record.
—Besides the approval function, are there any other advantages to choosing SMS Connect?
Tsukamoto:When considering using SMS for new business development, the biggest obstacle is the law. When sending emails or other messages to new customers, you have to comply with laws such as the Specified Electronic Mail Act. For example, you need to obtain prior consent, and you have to keep a record of the consent you obtained.
In that respect, SMS Connect has an "opt-out URL," making it easy to unsubscribe. Customers who wish to opt out simply click, and we don't have to send messages to them. Even if the recipient's address is included in future SMS messages, it's automatically excluded. Without this feature, it would be impossible to use SMS for new business development, so it's an essential feature for new business development that our previous vendor lacked. We've secured a crucial point for expanding our sales activities in the future, so I think it's up to our own strategies now. It's a service with a very useful set of features
--What is Akrit's support system like?
Tsukamoto:There's a manual within SMS Connect, so sometimes I can find a solution by searching for it. If I can't find a solution, I contact the support center by email or phone, and their quick response is very helpful.
* "Approval function," "Display of fixed number for all carriers," and "Opt-out URL" are optional features of SMS Connect.
https://www.accrete-inc.com/service/onewaysms/
(Reference) What is the Specified Electronic Mail Act? Explanation of whether SMS and LINE are also covered
https://www.accrete-inc.com/useful_information/20220622/
--Please tell us, to the extent possible, about your future plans for initiatives utilizing SMS
Tsukamoto:Within the insurance sales department, the life insurance division works in conjunction with a telemarketing company, employing a so-called mail-order sales style where operators make phone calls, send out materials, and handle everything from closing deals. Since this department relies solely on phone calls, there are advantages to using the phone when dealing with elderly people. However, I've heard that recently, many elderly people use mobile phones, and there are quite a few people who can't be reached. It seems they are currently working on a way to approach those people via SMS to help them decide whether or not to sign a contract.
While results may not be immediate, we believe this will be a new way to approach customers who are difficult to contact. In new business development, we plan to expand its use by combining targeted SMS messaging with existing methods such as email newsletters, direct mail, and telemarketing, while monitoring its cost-effectiveness
Yamagata:We use a variety of systems, and we already utilize SMS in some of our operations outside of the web, such as connecting our inquiry phone system to an IVR (Interactive Voice Response) system and contacting customers who are behind on payments. In the future, we would like to expand the systems that can utilize SMS and consider mechanisms that will help customers notice the information they need.
In reality, the extent to which we proceed depends on a balance between effectiveness and cost, but there are some projects that the relevant departments are working on as system improvements, and I feel that the range of applications has expanded significantly since introducing SMS Connect
The previous service we used had a very high cost per message, so I think this new service has lowered the barrier to entry for many users
* "IVR" stands for Interactive Voice Response System. When integrated with SMS, if the automated voice message alone is insufficient to convey all the necessary information, supplementary information can be sent via SMS, allowing for the smooth delivery of detailed information to users
(Reference) What is IVR? Explanation of its use and benefits in call centers
https://www.accrete-inc.com/useful_information/20220523/
This time, we interviewed MI Card Co., Ltd. We hope this will be helpful for those working in the systems and insurance sales departments. Although we couldn't include everything in the main text, we received questions and opinions regarding their actual use of the service. We will continue to strive to further improve the convenience of SMS Connect
Established in 1988 as the credit company of the Mitsukoshi Isetan Group, the company offers not only credit card services but also insurance and financial products, prioritizing customer satisfaction and creating services that cater to people's daily lives
