Text Messaging – An Alternative Marketing Channel

We've all heard the buzz about text messaging or SMS (short message service). But exactly what is it? Asia and Europe have been using text messaging for several years now. Here in the U.S. however, list brokers and marketers aren't quite clear as to what the service provides, what to look for in an SMS list and who can benefit from using it.

Text messaging is a similar to e-mail but with quicker delivery—think a message on steroids. Once a message is deployed, an offer is instantaneously displayed on cell phones of consumers or business owners that have opted in to receive information and promotions via this communication channel. Marketers now have the option to deploy text messaging blasts to targeted individuals in a real time fashion and usually at a reasonable cost.

A recent Nielsen Mobile survey showed that U.S. mobile subscribers were now sending more text messages than making cell phone telephone calls. "A typical U.S. mobile subscriber sends or receives 357 text messages per month, compared to placing or receiving 204 phone calls."

So who should be using text messaging to target prospects and what lists should be considered to ensure best practices that meet our industry standards?

List brokers and marketers who want to target a younger audience should consider mobile marketing as part of a multi-channel platform. Statistics show that the 18-40 year old cell phone user is also the group with the highest text messages per month. Research also suggests that 80% of this audience carries their cell phone with them at all times. A receptive market to target with the right offer!

Lists that brokers should consider will have 100% opted in records. Similar to opted in e-mail records, you want a responsive audience and want to abide by industry standards. Mobile marketers should also request recency to increase response. Lists that have a monthly hotline should be considered, as the more current the data, the more responsive the list in many instances. Lifestyle selects are also available on some of the text messaging lists in addition to geography and gender. Lastly, many of the lists also have postal or e-mail components to expand the marketing channels.

Text messaging can be used by advertisers who want to target large quantities of consumers or business owners in real time. Similar to e-mail, text messaging monitors campaigns via an open rate. Recent campaigns and industry statistics show an open rate of 90%. The messages, or calls to action, are being seen. Mobile marketing can compliment other types of promotions and can be used effectively in conjunction with direct mail, telemarketing, e-mail or event marketing campaigns.

Who can benefit from text messaging campaigns? Retailers can use the service to increase store traffic. A text for 15% off a certain product can be displayed on the cell phone at the cash register for the savings. Restaurants can promote special offers on traditionally slow days using the text messaging service.

Sports and entertainment companies can offer savings for surplus tickets to nearby sporting events the day before show time. Auto dealers can broadcast new shipments or promotional financing to local car aficionados or advertise mini van specials to mothers with small children.

Another benefit of mobile messaging is to actively engage a customer using the call to action service. The call to action program provides a keycode and text code to incorporate into traditional advertisements. Business owners can text back using a specific code to be entered to win a gift card for office supplies. Consumers can text back to be entered into a drawing for a new iPod. Sports enthusiasts can place their vote on who will win the Super Bowl. The key word and text code can be added to printed media, billboards or television commercials. When a prospect is engaged the likelihood for conversion to a customer is increased.

Mobile marketing is obviously not an appropriate channel for every acquisition or retention campaign. However, for the right products or services, text messaging has the opportunity to breathe new life and create more depth or touch points to current marketing platforms.


TeleFly Communications