How To Use An Msms For Business

Transcription

1 White Paper

2 Contents As budgets are being slashed, more and more smart businesses are using SMS. This White Paper discusses how SMS can help your business do more for less and how businesses like Ocado and Virgin Media have used SMS to help their businesses become more effective. SMS and 01 SMS and direct mail 02 SMS and phone calls 03 SMS and apps 04 Contact us 05

3 SMS and and SMS volume and reach It may come of no surprise that an individual may receive an average of 1,216 s per month, compared with only 178 text messages (Juniper Research). As people are so bombarded by s they have become selective about which s they open and which s they ignore. Research from Symantic suggests that an estimated 90% of all s received are spam. So it s hardly surprising that the average open rate for s is 22% in contrast with 98% for text messages which are opened as soon as they are received (ITU). The cost of and return on investment marketing is often considered as a low cost option, but when you take into account the design, preparation, platform and database costs it may be more expensive than you think. Additionally, due to the relative low open rate and low response rate, can end up having a poor return on investment. In comparison, countless studies show that SMS marketing campaigns generate the highest response rates and with SMS messages being a more straight forward form of communication it s not only effective in terms of cost but also resource. A survey by the DMA (Direct Marketing Association) found that 70% admit to having responded to a marketing text message, a much higher percentage than for . How Virgin Media use SMS Virgin Media send SMS messages to customers two days before any arranged installation date to remind them of their appointment. Virgin Media estimate they have avoided 45,000 wasted callouts per annum, improving their performance. Virgin Media We did have quite a large number of people who weren t in they d forgotten we were coming. By messaging them we ve been able to jog their memories fewer customers forget, many come back and tell us in advance the appointment is no longer convenient and ask to re-arrange. We ve been surprised to find that quite a few have also thanked us for the reminder. 01

4 SMS and direct mail The cost of direct mail and return on investment With other communication channels coming into the fore direct mail has become a unique way to get your message across to an audience. However, the expense of direct mail campaigns can soon mount up when you consider the design and production costs (paper, leaflets, envelopes, stamps etc.), the cost of compiling a suitable database and the time required to send the mail. In stark contrast an SMS costs just a few pence and there are no expensive production costs. You can manage the whole process for free on one easy-to-use platform, from creating the message to providing delivery reports. SMS messages have a high open rate and are quick to set-up (you only need to think of 160 characters) and unlike direct mail your business SMS always stays with customer because of the personal and portable nature of a mobile phone. The instant nature of SMS makes them ideal for timely offers, updates or reminders. It also means that your audience can respond immediately so you can measure the results and success straight away. How Time4Fitness use SMS Time4Fitness used to outsource their marketing to a local agency (which included direct mail to lapsed members, current members and local businesses.) Switching to SMS radically improved their marketing effectiveness and generated significant extra revenue. Time4Fitness After quickly uploading the telephone numbers and typing a message the campaign is ready to send. It s much quicker and cheaper than the campaigns we were doing with the agency. 02

5 SMS and phone calls The effectiveness of phone calls A recent study in mobile usage from Ofcom concluded that 58% of people send SMS everyday while only 46% make telephone calls. The research shows that new technology has fundamentally changed the way people communicate. Talking on the phone is no longer the most common way for people to interact with each other. Given the relative cost of sending SMS messages compared to making phone calls (not only the cost of the call but the time spent calling) has meant that many businesses have chosen to reinforce their communication strategy with SMS. Call centres, retailers, schools, councils are just some of the organisations that are now switching from phone calls to SMS for customer service, notifications, reminders and increasing sales. How Ocado use SMS Ocado have chosen to use SMS as a main communication method to communicate with their staff. Due to the very nature of the home grocery delivery industry, Ocado has to run a tight ship in terms of resource planning. With a large team of employees working a variety of shift-based patterns in its warehouse and delivery operations, Ocado must be able to contact staff quickly and easily to determine availability for overtime, holiday and shift changes. Ocado Our Customer Service Team Members - involved in deliveries - and Personal Shoppers - involved in warehouse operations - are vital to the success of Ocado. To deliver the best possible service for our customers, we need to be able to draw on our operatives skills effectively, sometimes at short notice, especially at peak season, such as Christmas. 03

6 SMS and apps Apps verses SMS According to a report by Informa there were 19 billion OTT (Over-The-Top) messages sent each day in 2012 compared to 17.6 billion text messages. There is no doubt that that OTT messaging is having a profound effect on person to person mobile communications, but when it comes to mobile business communications, text messaging is still projected to grow. Portio Research estimates that the Application-to-Person (A2P) market will be worth $ 78.5 billion by If your target market fall into the category that own a smartphone developing an app may seem like a good option. However, as well as the initial capital outlay there will also be various development and maintenance costs. Unfortunately the hurdles don t stop there as each customer will need a smartphone, the motivation to download your app and the data to use it. SMS on the other hand is ubiquitous. Research by YouGov shows that the majority of people also like using it (75% of smartphone users prefer receiving offers via SMS). What s more it s instantaneous, reliable and low cost in most countries messages cost just a few pence. These factors combined make SMS ideal for large scale business communications. How Kiddicare use SMS Kiddicare uses an SMS API which integrates with its existing systems and automates the sending of customer dispatch texts. The outbound-only text delivery system means Kiddicare customers are kept fully up to date with the status of their order and can make changes as required. Kiddicare has seen a 30% reduction in missed deliveries, making their workforce considerably more productive. Kiddicare At the point of order, the customer inputs their mobile number in the Kiddicare checkout system. As soon as the goods are dispatched from the warehouse, the customer receives an SMS to say their order is on its way. If we only have their landline number, this is not a problem as the Esendex system sends the message to this number where it is converted to a voice message for the customer to retrieve 04

7 Questions? Get in touch SMS is a powerful communications tool; it is fast, reliable and inexpensive. More and more businesses are choosing SMS to generate sales, improve their customer service, increase staff effectiveness, communicate in a crisis and reduce operating costs. With direct connections to all the mobile networks and through continual investment in our messaging technology, we are proud that our SMS service is the most powerful and reliable there is. Call us Sales: Support: Int: +44 (0) Fax: +44 (0) us info@esendex.co.uk Find us online Visit us 20 Wollaton Street Nottingham NG1 5FW United Kingdom 05