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SMS IN YOUR INDUSTRY Make it simple. Make it memorable. Make it inviting to look at. Make it fun to read. – Leo Burnett LEGAL eBook License The subscribing organisation is not permitted to disclose the eBook (in hard or soft copy format) or its contents to any additional third parties, and must ensure that any person within the subscribing organisation’s company who has access to the content of this report abides by the requirements of this confidentiality undertaking. Should the subscribing organisation wish to disclose the eBook or the contents thereof to any person outside the immediate corporate entity of the subscribing organisation, the subscribing organisation shall seek approval in advance from MessageMedia and advise MessageMedia of the full particulars of the person or persons to whom disclosure is intended to be made. The material contained in this report is copyright protected, and is owned by MessageMedia. Disclaimer All surveys, forecasts, projections and recommendations made in this eBook are made in good faith on the basis of information available to MessageMedia at the time; and MessageMedia disclaims any liability for any loss or damage caused by errors or omissions, whether such errors or omissions resulted from negligence, accident or other causes. Neither MessageMedia nor its agents will be liable for any loss or other consequences (whether or not due to the negligence of MessageMedia or their agents) arising out of use of information in this eBook. MESSAGEMEDIA | SMS FOR MARKETERS 3 SMS solutions for business Simple and cost effective ü Easy to integrate ü Send to mobile and landlines ü 100% uptime guarantee ü FREE TRIAL CLICK HERE CONTENTS 1.0 Introduction to SMS Direct Marketing.............................................................................6 2.0 SMS as a Marketing Channel.........................................................................................9 3.0 The Pros of SMS Marketing.........................................................................................12 4.0 SMS Marketing – Five Warning Bells............................................................................15 5.0 SMS Text Messaging: Convenient for Customers, Easy for Companies........................18 6.0 SMS Direct Marketing and Location-Based Mobile Marketing......................................21 7.0 How to Write an Effective Business Text Message........................................................24 8.0 Choosing an SMS Partner............................................................................................27 9.0 Conclusion and Contact Information............................................................................30 MESSAGEMEDIA | SMS FOR MARKETERS 5 Introduction to SMS direct marketing Introduction to SMS direct marketing Take a good look around you; wherever the eye can see, there’s a high probability there will be an advertisement of some sort. We are being bombarded by marketing messages as marketers desperately try to break through the clutter and communicate with customers and prospects in any way possible. As reported by to leading Australian media agency Mitchell & Partners, Australians will see around 1,500 commercial advertisements from mainstream media every week. And when you consider the USA, consumer research company Yankelovich, in the United States suggests this figure grows more than ten-fold to between 3,500 and 5,000 marketing messages per day. This may seem an awful lot but when you think about it, messages and logo’s are not only where you would expect them to be, they are everywhere else as well; on the side of trucks and vans on the road, on our favourite TV shows as a form of paid product placement, at any counter or check-out and in sponsored SMS text messages on our mobile phones. SMS text messaging is the most widely used data application on the planet. SMS text messaging is the most widely used data application in the world; and the mobile channel is getting established as an integral part of the marketing media mix. This form of marketing is known as SMS direct marketing, and SMS Gateways make running a text message campaign a breeze and as a simple as sending a single text (or bulk SMS) from your computer. A key characteristic of direct marketing is that it generally requests a response from the customer; that is, it drives a call to action. This is a sound reason why SMS direct marketing is gaining popularity with marketers the world over and why you should consider SMS direct marketing in your marketing mix and assess the various text messaging software options for your business. “MessageMedia’s system is fantastic, and very easy to use! Our first 514 texts to our customer database cost around $40 and turned into 11 sales - compare that with $3300 spent previously on a mailer to 10,000 homes resulting in just five sales.” – Simon, Owner, Nutrishop, Laguna, California MESSAGEMEDIA | SMS FOR MARKETERS 8 SMS as a marketing channel SMS as a marketing channel Marketers know that the best way to interact and communicate with customers and prospects is through using a variety of channels and media. All of an organisation’s channels and customer touch points must be integrated to convey a consistent and personalised experience that is meaningful and relevant to the customer and in the case of direct marketing it must be above all, timely. SMS is still a relatively uncluttered and spam-free marketing channel. It’s also the one form of communication that many people are tethered to 24/7. As reported by the NY Times, this fact does help to explain why, at a time when in-boxes are filled with hundreds of never-opened e-mail messages from direct marketers, 97 percent of all SMS marketing messages are opened on delivery (and 83 percent are opened within one hour). 97% of SMS are opened upon delivery and 83% are typically opened within four minutes. MESSAGEMEDIA | SMS FOR MARKETERS 10 The computer that people once used has become the smart phone in their pocket or the tablet in their hands. Mobile phones are getting stronger, faster and better– they have become palm-sized laptops All of this means we are relying more and more on our smart phone handsets and they are unlikely to be far out of earshot. Marketers have their captive audience. And SMS text messaging provides a “killer” application. Integrating an SMS API into your business systems will help to streamline this communication process with customers and prospects. SMS direct marketing campaigns can be timed to the minute, when you work with a reliable provider that has solid carrier relationships and offers a 100% uptime guarantee. SMS text messages can be more personalized when you have the software that allows you to match replies to specific messages sent. “SMS is a time saver, you get such prompt responses! In addition, unlike a phone conversation, you have all correspondence documented and tracked!” – Jamie, Corporate Staffing Services, Spotless MESSAGEMEDIA | SMS FOR MARKETERS 11 The Pros of SMS Marketing The Pros of SMS Marketing The very portable and inherently personal nature of a mobile phone is a key to SMS direct marketing success. An SMS text message is always readily available as most people carry their mobile phones with them wherever they go. Customers are very familiar with SMS technology and the ease with which they can respond to an SMS creates an instant and interactive communication gateway. Marketing your product or service using SMS text messaging is an excellent way to reach more customers because: • the people who opt-in to receive SMS text messages from an organisation may not be many in number, but you can be sure they will be quite keen to know more about the product or service you are offering • companies can offer “spot” deals to customers, as messages are sent in real-time and are instantly delivered via an SMS Gateway • SMS text messaging is highly interactive and can be used to prompt customers to vote, complete questionnaires or participate in research surveys – with good results • SMS marketing is a good alternative for gathering user data, this knowledge can be applied to advertising campaigns to support making changes or adjustments where necessary • Customer participation can be easily and quickly rewarded, and, if the campaign is tightly integrated across multiple channels and uses various other mobile social media, customers will be able to promote and share the message via word of mouth. SMS is more immediate and effective than email. MESSAGEMEDIA | SMS FOR MARKETERS 13 83% 73% of American adults own cell phones. of those send and receive text messages. Some 83% of American adults own cell phones and three-quarters of them (73%) send and receive text messages. The Pew Research Center’s Internet & American Life Project asked those texters in a survey how they prefer to be contacted on their cell phone and 31% said they preferred texts to talking on the phone! “While email is useful, text messages are carried with the recipient and are less diluted by spam. MessageMedia is economical, easy to use and our interaction with them has been faultless.” – Hamish, Director, Riverina Conservatorium of Music MESSAGEMEDIA | SMS FOR MARKETERS 14 SMS Marketing – five warning bells SMS Marketing – five warning bells While text messaging is the king of mobile messaging, and the most widely used data application in the world, SMS marketing is only now beginning to gain popularity. Due to regulatory controls, SMS text messaging is relatively uncluttered, which makes it a great channel to consider in your mix, however here’s our guide to the top five things to consider: 1 Limited creativity - the maximum limit for a text message is 160 characters, this is not very much advertising space and it is just a text- there are no options to add sound, animation or graphics 2 Cut through and differentiation is key – a lot of preparation is required to produce a really good SMS text message campaign, because the messages are so short. And you can’t just keep sending out the same message time and time again, each message must be worded and presented differently to take into consideration the target customer, the time, the place and the relevance of the message. See our chapter on how to write an effective business text message. 3 The challenge of opt-in – surely this is the ‘holy grail’ for marketers, the customer who chooses to opt-in and receive text messages from you. There are not many customers who would willingly do so, and even if they do are they going to read every message you send them? 4 Age and audience – regular text users fall into quite a specific demographic, so the audience is limited. And of this limited audience only a small percentage may optin to receive messages, even less would actually read the message. This does limit the potential size of your audience 5 Above all, make sure you work with an SMS provider that is committed to developing a long term and sustainable relationship with you. Look out for the chapter on choosing your best SMS partner for more information. MESSAGEMEDIA | SMS FOR MARKETERS 16 “Yesterday we set up an account and sent a whole bunch of messages to our customers, today several people who got the SMS came in, which resulted in $3000 in sales. MessageMedia made it easy, the system is simple and it obviously works!” – Wendy, Proprietor, Parata Clothing SMS text messaging: convenient for customers, easy for companies SMS text messaging: convenient for customers, easy for companies SMS text messaging is a powerful yet simple-to-use solution that is an efficient and cost effective method for businesses to help reach their customers. As a direct marketing channel it is relatively uncluttered and virtually spam-free. Text messaging campaigns offer numerous benefits and enable marketers to easily compose, send, and track mobile marketing campaigns. • SMS campaigns are easy to track – in real time you will be able to determine the success of your marketing or promotional campaign. • SMS text message campaigns are green! Have a positive environmental impact and reduce the amount of paper used for traditional direct marketing campaigns. By integrating an SMS API into your business systems, you will be able to send bulk SMS from your PC or computer to your contacts. You can choose one or two-way messaging, and depending on your provider, you will be able to match replies to specific messages sent, allowing for a far more personalized customer experience. Sending text messages from a computer has an added productivity gain. It is definitely a lot faster to type your messages from your computer keyboard than from the small keyboard of your mobile phone. “MessageMedia saves us time and money. We have a national transport fleet, we now send SMS to drivers instead of calling. Our staff spend much less time on the phone, which has improved productivity and reduced costs.” – Brian, Transpacific Industries MESSAGEMEDIA | SMS FOR MARKETERS 19 Other benefits available for companies that take up quality SMS text message software is the reporting functionality, the ability to automatically handle opt-out requests, SPAM blocking technology and security controls for you and your customers peace of mind. When you are considering SMS direct marketing as a channel for your customer communication, there are a few questions you should ask: • What is the best way to execute this campaign - mobile communication, email or direct mail? Choose the most appropriate. • Critically assess if the communication is time-sensitive. If it is, SMS may be the best option, if not, it’s worth reviewing alternatives. • What do you expect your customer to do with you message? If this is campaign that relies on two-way communications then SMS could be the best option. However if they don’t need to reply or gain nothing from replying then you are probably wasting their time and they won’t want to hear from you again. • For those who have opted in to this mobile campaign – do you have enough content to keep them interested, or will they quickly stop seeing the value in your SMS messages? When you take all of this into consideration, you will ensure that your SMS text message campaign it set up to succeed and deliver leads, sales and/or productivity and efficiency gains for your business. MESSAGEMEDIA | SMS FOR MARKETERS 20 SMS direct marketing and locationbased mobile marketing SMS direct marketing and location-based mobile marketing Over the past few years, there has been rapid acceleration of advertising and direct marketing channels moving to online. PriceWaterhouseCoopers (PWC), has indicated that online advertising is expected to grow seven-times faster than print between 2010 and 2014 and almost four-times faster than TV advertising during the same period. Driving this increase in online advertising spend is often mobile devices (especially in the USA), which allow for impulse purchases or on a needs basis, and is enabled by comparative shopping using a mobile phone. According to market intelligence organisation, Telsyte, the ability to integrate mobile social networking with deals, offer location-based deals, and allow merchants to push deals immediately to customers within their vicinity will be the pillars of growth in the next two years. SMS text messaging will be the perfect enabler for this, and organisations that have strong and well segmented databases will have the upper hand as deal targeting will be critical, which demands that you understand who your customer is and what they want. Online advertising is expected to grow seven times faster than print between 2010 & 2014 MESSAGEMEDIA | SMS FOR MARKETERS 22 A 2011 report by market research company, Galaxy Research, suggested that two thirds of consumers would like to receive location-based offers when shopping, with restaurants, fast food, petrol and groceries the most popular items for the location-aware advertisements. Another interesting example of this in action is Gap Mobile4U in the US. Gap Inc partnered with Visa to offer discounts and promotions to registered customers. The company spokesperson said partnering with a credit card company like Visa provides them insight into their enrolled consumers that they never had in the past. “This allows us to improve the targeting of our promotional programs, timing of communications and allowed us to tailor offers to Gap, Old Navy and Banana Republic customers.” MESSAGEMEDIA | SMS FOR MARKETERS 23 How to write an effective business text message What are the 160 characters that will deliver the best result for your campaign? How to write an effective business text message A key challenge when using SMS text messaging for marketing activity is to ensure you make the best use of the 160 characters available to get the best possible result and return for your business. Here are a few tips for you to consider when developing your next SMS text message campaign: 1. Clarity of target – text messages are a way to establish a very personal level of communication with your customer, so to ensure the best possible response, target effectively. Be very clear who you want to contact and then speak to them in the language they use and offer solutions/products they are likely to be interested in. 2. Considerate timing – most people have their phone with them most of the timing, so timing should not be an issue unless it is wrong (2am) or intrusive. Research has shown that if you are sending business messages, the optimal time is mid to late afternoon on weekdays. 3. Dnt use txt spk, lol – this is a business marketing message, use real words and proper grammar. U wldnt rite txt spk on ur website wud u? 4. Keep it simple – it applies to all marketing, including your SMS marketing activity, in fact especially for your SMS marketing! – you only have 160 characters to get the message across so keep it clean and simple with a clear call to action. 5. Provide details – provide complete and clear instructions as to what your message receiver needs to do with the message – include phone numbers where relevant, and if they have to keep the text, tell them. 6. Be familiar – use a send name your customers will recognise. 7. Use attention-grabbing language – like a headline of an advertisement, you want your customer to act/read on and open your message. Start the message with enticing words such as Offer or News or Free. 8. Test, modify, test, modify and test again. MESSAGEMEDIA | SMS FOR MARKETERS 26 Choosing an SMS partner Choosing an SMS partner There are few entry barriers for new text messaging providers, which has seen novice suppliers enter the market at regular intervals. Unfortunately, many have let their partners down with unreliable messaging, or worse – they go out of business. Your SMS partner should allow you to add value for your clients, while differentiating your service offering in your marketplace. Look for a partner that can offer flexible partnership options to match your business requirements and the needs of your customer. Application Programming Interface (API) A well designed SMS gateway API will allow you to quickly send multiple SMS messages through your website or application. Ensure the SMS API is built in a straightforward manner to ensure hassle-free integration with provider SMS gateways. Look for a provider that offers a range of SMS gateways options to provide your business the opportunity to add SMS capability to any application or website. With leading SMS gateway software, you can send SMS, voice and text-to-speech messages from any application to multiple receivers. "We discovered our previous provider wasn't always delivering our messages, which made us look unprofessional, so we switched to MessageMedia. Setting up was easy and staff were available when I needed them." – Chris, IT/Development Manager, Digital Ads International MESSAGEMEDIA | SMS FOR MARKETERS 28 Ensure your SMS API gateway has 100% uptime guarantee. What to look for in an SMS API gateway: • Worldwide reach. • Send scheduled multiple SMS messages at a specified time. • Easy integration with easy-to-use SMS gateway API interfaces. • Facilitates two-way communication. • Easily accessible. • Allows users to add sub-users, do reporting and make online payments. • Technical support. • Voice and text-to-speech messaging functionality. • 100% uptime guarantee. • Real time delivery of inbound texts, delivery tracking to cell phones and replies flagged to correspond to outbound message. • Allows HTTPS/SSL secure mode. • And finally, make sure your partner runs multiple SMS gateways concurrently, to provide hassle-free service and uses U.S. carriers instead of unreliable offshore carriers. MESSAGEMEDIA | SMS FOR MARKETERS 29 Conclusion and Contact Information Conclusion and Contact Information After having read this ebook, you should feel confident that you are ready to launch a successful SMS marketing campaign. By following the recommended guidelines, you can turn SMS in to a great lead generation channel for your business. Make sure you establish your goals and action plan before you start any new campaign and regularly measure campaign performance. If you are not seeing the results you were looking for, make changes and try new ideas. Take what you learned here and adjust it to best fit the needs of your business model, and the wants of your audience. They are, after all, your potential customers. Good luck! MESSAGEMEDIA | SMS FOR MARKETERS 31 USA Level Five, One Embarcadero Center San Francisco, CA 94111 Sales: 888-799-9767 Support: 866-751-8337 Fax: 646 862 8887 UK Level 6, 52 Grosvenor Gardens Victoria London SW1W 0AU Sales: 0808 234 8246 Support: 0808 234 4874 Fax: 0208 082 5091 Australia Level 22, 385 Bourke Street Melbourne VIC 3000 Sales: 1800 009 767 Support: 1800 155 228 Fax: 03 8612 3689